Market changes bring GATX restructuring

Abstract

While regulatory compliance costs continue to escalate, changes in the needs and practices of customers are creating challenges for the bulk liquid terminals business. Minimum inventory policies have reduced demand for petroleum storage, and surplus private tankage of utilities and oil companies is being thrown onto the public market. Petroleum companies, following the lead of chemical companies, are moving toward more centralized distribution management. Responding to such changes, GATX Terminals Corp. recently realigned the management of its operations. Until this January, terminal functions of the $300 million enterprise were largely managed by highly autonomous business units. Now it has moved to a new flexible structure that combines aspects of centralized and decentralized organizations.