William B. Cassidy, Senior Editor | Apr 05, 2012 1:49PM EDT
YRC Worldwide received “multiple bids” for more than 60 facilities put up for sale via a sealed-bid auction and is analyzing those offers, a company spokesperson said.
No final decisions have been made on the properties, which are mostly vacant. YRC Worldwide and NRC Realty & Capital Advisors launched the auction in January.
The deadline for bids on the properties, ranging from a six-door facility in Temple, Texas to a 349-door cross-dock complex in Kernersville, N.C., was March 29.
Altogether, the terminals and offices for sale represent plenty of capacity for less-than-truckload carriers looking to expand, about 2,300 dock doors in total.
“Facilities are not like fine wine, they don’t get better with age,” YRC Worldwide CEO James Welch told The Journal of Commerce during an interview in February.
“It’s costing me $4 million a year to maintain those properties,” he said. YRC would rather put that money, plus proceeds from the auction, toward its bottom line.
The auction could gross between $50 million and $60 million, according to Ted Morandin of Morprop Advisors’ Industrial Transportation Property Network.
“We think YRCW will reduce its real estate again once this portfolio is sold to right-size its network to revenue,” the founder of Morprop Advisors said.
The holding company, parent of YRC Freight and three regional carriers, increased revenue 11 percent to $4.9 billion in 2011 but had a net loss of $354.4 million.
According to its 2011 annual report, YRC Freight operates 282 terminals, including 148 leased facilities, with a total capacity of 15,386 doors.
The company and the Teamsters union next week will implement two changes of operations designed to reduce freight handling in YRC Freight’s LTL network.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
