Profile: GATX Corp (GMT)
3 Dec 2013
GATX Corporation (GATX) incorporated on July 5, 1916, leases, operates, manages and remarkets long-lived, widely-used assets, primarily in the rail and marine markets. The Company operates through four primary business segments: Rail North America, Rail International, American Steamship Company (ASC) and Portfolio Management. GATX and its rail affiliates lease tank cars, freight cars and locomotives in North America, Europe and India. As of December 31, 2012, GATX's wholly-owned fleet consisted of approximately 131,000 railcars and 561 locomotives. GATX also has an ownership interest in approximately 30,000 railcars through investments in affiliated companies. Affiliate fleets consist primarily of freight and intermodal railcars. In addition, GATX manages fleets for an affiliate and other third-party owners of approximately 5,200 railcars.
RAIL NORTH AMERICA
Rail North America consists of GATX's wholly-owned operations in the United States, Canada and Mexico, as well as two affiliate investments. Rail North America primarily provides railcars pursuant to full-service leases under which it maintains the railcars, pays ad valorem taxes and insurance and provides other ancillary services. These railcars have estimated useful lives of 30 to 38 years and an average age of approximately 16 years. Rail North America leases new railcars for terms that generally range from one to ten or more years, with renewals of existing leases and assignments generally ranging from 3-10 years. Rail North America also includes a locomotive leasing business, which consisted of 514 four-axle and 47 six-axle locomotives at December 31, 2012. Rail North America also selectively remarkets rail assets, including assets managed for third parties and certain affiliates.
The Company competes with Union Tank Car Company, General Electric Railcar Services Corporation, American Railcar Leasing, Trinity Leasing, CIT Group Inc., and First Union Rail.
Rail International consists of GATX's wholly-owned European operations (Rail Europe) and its railcar leasing business in India (Rail India), as well as two affiliate investments. Rail Europe leases railcars, predominantly tank cars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides insurance and other ancillary services. These railcars have estimated useful lives of 30 to 38 years and an average age of approximately 22 years. Rail Europe's lease terms generally range from one to seven years.
AAE Cargo AG (AAE) is a 37.5% owned Switzerland-based railcar lessor. As of December 31, 2012, it owned approximately 24,500 freight cars, consisting of 60% intermodal cars, 15% covered cars and 25% other freight car types, with an average age of 13 years. AAE's customer base consists of various railways throughout Europe as well as private operators. As of December 31, 2012, the average remaining lease term of AAE railcars was approximately two years.
The Company competes with VTG Aktiengesellschaft, the Ermewa Group and Nacco.
American Steamship Company
ASC operates the fleet of the United States flagged vessels on the Great Lakes, providing waterborne transportation of dry bulk commodities such as iron ore, coal, limestone aggregates and metallurgical limestone. At December 31, 2012, ASC's fleet consisted of 18 vessels. During 2012, ASC operated 14 vessels and carried 29.7 million net tons of cargo.
The Company competes with Interlake Steamship Company, VanEnkevort Tug and Barge, Grand River Navigation, and Great Lakes Fleet, Inc.
Portfolio Management is an aggregation of a group of diversified owned assets and joint venture investments (affiliates) and provides leasing, asset remarketing and asset management services. Portfolio Management selectively invests in long-lived, widely used assets with a focus on domestic marine and container related equipment. Portfolio Management's wholly-owned portfolio primarily consists of investments in operating assets, finance lease assets and secured loans. Operating and finance lease assets include chemical parcel tankers, shipping containers, inland marine barges, gas compression equipment, biofuel equipment, and other transportation equipment.
222 West Adams Street
CHICAGO IL 60606