Fleet Management

Yellow Plans to 'Separate' Regional Operations

April 06, 2001

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Less-than-truckload giant Yellow Corp. may spin off its regional companies, Jevic and Saia, by the end of the year.
A report in Friday's Traffic World magazine says the Kansas-based union company will "separate" the non-union operations, either through a spin-off into a separate company or by selling the unit.

The plan would leave Yellow Corp. with Yellow Freight System and Transportation.com.
In January, Yellow announced it was integrating two of its regional subsidiaries, WestEx and Action Express, into its Atlanta-based Saia subsidiary. Jevic continued to operate as a separate company.
Jevic and Saia earned Yellow about $800 million last year, but profits are down at both companies. Yellow bought Saia in 1992 and Jevic two years ago.
Company officials emphasized to Traffic World reporters that Yellow is not planning to get out of the fast-growing regional business. Quite the contrary: Recent changes have allowed Yellow Freight System to perform well in the regional arena with its regular freight operations. In the past year, the company has been making operational changes in its "corridor-hub" concept to allow improved regional transit times, reports the paper. (See "Yellow Expands to Nashville and Charlotte," 3/16/01.) This is a change made under the direction of new YFS President James Welch, who took the reigns less than a year ago.

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