Full Description

GATX Corporation (GATX) leases, operates and manages long-lived, used assets in the rail, marine and industrial equipment markets. GATX also invests in joint ventures that complement existing business activities. Headquartered in Chicago, Illinois, the Company has three business segments: Rail, Specialty and American Steamship Company (ASC). As of December 31, 2008, GATX had balance sheet assets of $6.3 billion, comprised of railcars, marine vessels and joint venture investments. GATX also utilized approximately $1.1 billion of assets, primarily railcars, which were leased-in under operating leases. In 2008, Rail acquired the North American railcar fleet of Allco Finance Group Limited.

Rail

Rail is engaged in leases tank cars, freight cars and locomotives in North America and Europe. As of December 31, 2008, Rail had total assets of $5.2 billion, including $1.1 billion of off balance sheet assets. Rail’s railcar leasing customers are comprised primarily of shippers of chemical, petroleum and food products, as well as railroads. Rail’s locomotive leasing customers are primarily Class I, regional and short-line railroads and industrial users. Rail provides more than 130 railcar types used to ship over 700 different commodities. As of December 31, 2008, Rail’s worldwide fleet, consisted of wholly owned and leased-in railcars, totaled approximately 133,000 railcars. These cars have depreciable lives of 30 to 38 years and an average age of approximately 16 years in North America and 24 years in Europe. Rail also had an ownership interest in approximately 30,000 railcars worldwide through investments in affiliated companies. Rail has two investments in affiliated companies: a 50% interest in Southern Capital Corporation (SCC) and a 37.5% interest in AAE Cargo AG (AAE).

Specialty

Specialty is focused on providing leasing, asset remarketing and asset management services in the marine and industrial equipment markets. Specialty also offers operating leases, direct finance leases and loans, and extends its market reach through joint venture investments. Target asset for Specialty include; marine, oil and gas equipment, power generation equipment, industrial facilities, and construction and mining equipment. The Specialty portfolio consists primarily of operating and direct finance lease assets; joint venture investments; loans, and interests in residual values involving a variety of underlying asset types, including marine, rail, industrial and other equipment. The portfolio provides recurring lease and interest income and periodic remarketing income primarily related to the sale of assets.

American Steamship Company

ASC owns and operates a fleet of United States flagged vessels on the Great Lakes and is engaged in the waterborne transportation of dry bulk commodities. The primary commodities that ASC’s vessels carry are iron ore, coal and limestone. As of December 31, 2008, ASC operated a fleet of 18 vessels and had total assets of $237 million. Fifteen of ASC’s vessels are diesel powered vessels constructed in the 1970’s and early 1980’s, having an average age of 31 years and an estimated useful life of 50 years. These vessels range in size from approximately 635 feet to 1,000 feet long and can carry from 23,800 to 80,900 gross tons per trip. The three remaining vessels are steam powered vessels built in the 1940’s and 1950’s and have an estimated remaining useful life of ten years. The steamer vessels range in size from 690 to 767 feet and can carry from 22,300 to 26,300 gross tons per trip. ASC’s vessels are equipped with self-unloading equipment, enabling them to discharge dry bulk cargo without assistance from shore-side equipment or personnel. ASC’s vessels are capable of transporting and unloading almost any free flowing, dry bulk commodity.

ASC’s competes with Grand River Navigation, Great Lakes Fleet, Inc., Interlake Steamship Company, K & K Integrated Logistics, VanEnkevort Tug and Barge and Upper Lakes Towing.