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GATX Terminals And Colonial Pipeline To Offer New Liquid Transport System

CHICAGO, March 9 -- GATX Terminals Corporation and Colonial Pipeline Co. today announced the formation of a joint operation to offer a new intra-harbor transfer ("IHT") service within the New York Harbor. The new service will allow for bulk liquid product movements, via pipeline, in and around the New York Harbor area.

The IHT service provides access to the Colonial delivery network for product movements originating from GATX's Carteret terminal. This entirely closed-loop pipeline system results from a reversal of Colonial's existing delivery line to GATX's Carteret terminal. The IHT service will mitigate the risk of traffic and weather delays often associated with barge movements, the current transportation mode for most terminal-to-terminal product movements. Local scheduling will ensure timeliness and efficiency in delivery schedules and offers customers the advantage of one contact to coordinate an entire move.

"Customers in the New York Harbor area have a significant need to transfer products from one facility to another, and the IHT service provides the best solution," said Douglas A. Belden, products and services coordinator of Colonial Pipeline. "Pipeline movements are safe, efficient, and flexible, and we can offer this value-adding service at a very competitive rate," added Mr. Belden.

"This is a revolutionay concept for moving petroleum products in this market," said

Kevin H. Golankiewicz, sales manager for GATX Terminals. "This new service will provide customers with a reliable, cost-effective alternative to barge transportation for their intra-harbor product movements," added Mr. Golankiewicz.

From its origination point in Houston, Texas, the Colonial Pipeline supplies the New York Harbor from its hub at the Linden Junction. Colonial's current system consists of 10 outbound delivery lines serving 22 terminals and a direct link to the Buckeye Pipeline. Reversing Colonial's delivery line to GATX's Carteret terminal creates a new "origin" for receipt of batches into Linden from the GATX Carteret facilities. At Colonial's Linden Junction, construction of a header has provided the flexibility of placing transferred batches to any of the 20 desired delivery locations.

New York Harbor is the hub for refined products distribution in the eastern United States. Not only is it the terminating point of the Colonial Pipeline, but it is also the origin of Buckeye Pipeline movements west and north, the origin of barge movements into New England, the destination point for domestic and imported tanker movements, and the main storage point for the New York Mercantile Exchange (NYMEX).

Colonial Pipeline and GATX Terminals have enjoyed a long-standing business relationship in New York Harbor and Houston, Texas.

Colonial Pipeline Co. of Atlanta, with origins in the U.S. Gulf Coast, is the nation's largest volume transporter of refined petroleum products. The 5,349-mile Colonial system transports these fuels to 267 marketing terminals located near the major population centers of the Southeast and the Eastern Seaboard. The system terminates in Linden, New Jersey, and Colonial daily delivers an average of more than 16 million gallons of gasoline, diesel fuel, home heating oil and aviation jet kerosene to the New York Harbor.

GATX Terminals is one of the world's largest providers of bulk liquid storage and distribution. GATX Terminals offers its petroleum and chemical customers a vast network of bulk liquid storage and pipeline distribution services at key locations in North America, Europe and the Pacific Rim.

GATX Terminals is a subsidiary of Chicago-based GATX Corporation (NYSE: GMT). In 1998, GATX is celebrating the 100th anniversary of its founding. GATX Corporation provides approximately $6 billion of service-enhanced assets primarily used to help its customers transport, store or distribute their products and information. GATX's assets include railcars and locomotives, bulk liquid terminals and pipelines, ships, commercial aircraft, technology equipment and other assets and related services worldwide. In addition, GATX offers a variety of financial and logistics services focused on enhancing the value of owned and leased assets.