Outlook brightens for tank cleaning

March 1, 2002
THE TANK cleaning industry just went through a couple of the most tumultuous years in its history. While the industry remains fundamentally sound, more

THE TANK cleaning industry just went through a couple of the most tumultuous years in its history. While the industry remains fundamentally sound, more changes are ahead.

Reduced chemical shipments, combined with consolidation among tank truck carriers, have had a major impact on tank cleaning. Proof of this can be seen in Modern Bulk Transporter's 2002 Tank Cleaning Directory (which starts on page 38). Total listings dropped from 413 in the 2001 directory to 368 this year.

A significant factor in the reduction in commercial wash rack listings was the sell-off of assets belonging to Matlack Systems Inc. Through its Brite-Sol Services subsidiary, Matlack operated one of the largest commercial tank cleaning networks in the United States. In all, Brite-Sol had some 25 locations in 17 states. A handful of the wash racks remain open to the public today (such as Brite Clean, which is profiled on page 34), and a number of the more outdated facilities were shut down.

The Brite-Sol breakup may be just the tip of the iceberg. Longtime participants in the tank cleaning industry estimate that dozens of wash racks have been mothballed in the past couple of years. Among these are proprietary fleet cleaning facilities, as well as commercial operations.

In addition, fewer new wash racks are being built right now. Through the 1980s and most of the 1990s, somewhere between 12 and 15 new tank cleaning facilities were constructed each year. After 1997, new wash rack construction dropped off by 5% to 10%. New construction was down 75% to 80% since 2000.

None of this means the tank cleaning industry is in decline. More than anything else, the industry seems to be going through a correction to keep pace with changes that have occurred in chemicals hauling. Challenges posed by increasingly stringent environmental regulations also have had an impact, but not as much as they could have.

The slowdown in new construction of wash racks is not a major reason for concern. An incredible number of wash racks were built in the years following US deregulation of the trucking industry. It was inevitable that the industry would reach a saturation point.

Changes in chemical traffic patterns meant that some wash racks were no longer in the right location. Also, downsized tank truck carriers decided that they didn't need as many of their own wash racks. Redundant wash racks resulting from carrier consolidation were closed. Tank fleet consolidation will continue, with some industry experts saying the process is in the very early stages.

On the environmental side, some older cleaning facilities were forced out of business. These operations lacked the financial resources or desire to install more sophisticated systems for handling and treating volatile organic compounds and other wastes. Environmental regulations will continue to be an issue.

As the economy recovers, so will activity at tank cleaning facilities throughout the United States and the rest of North America. There are indications that economic recovery is underway.

Federal Reserve Chairman Alan Greenspan said in late February and early March that he sees increasing signs that the US recession is coming to an end. He predicted 2002 growth in the 2.5% to 3% range. Chemical companies, especially those making specialty chemicals, are becoming more optimistic about the second half of the year.

Looking back 25 years, we can see how far tank cleaning has come. An impressive network of wash racks stretches across the United States and Canada making chemicals and edibles transportation more efficient and less costly. In the not-too-distant future, this network will encompass Mexico.

The best of these wash racks have a level of technical sophistication that wasn't even imagined 25 years ago. The companies involved in this industry should be proud of what has been achieved with regard to wash system design, cleaning capabilities, and waste treatment technologies.

Even with the correction that occurred over the past couple of years, the tank-cleaning sector has growth potential. Opportunities still exist for new wash racks that are built in strategic locations and have state-of-the-art equipment. Al-Kel Alliance, which opened for business in 2001, provides a good case in point. A profile on Al-Kel starts on page 24.

The tank cleaning industry has a solid future. It's time for those who built this industry to catch their breaths and move forward.

About the Author

Charles Wilson

Charles E. Wilson has spent 20 years covering the tank truck, tank container, and storage terminal industries throughout North, South, and Central America. He has been editor of Bulk Transporter since 1989. Prior to that, Wilson was managing editor of Bulk Transporter and Refrigerated Transporter and associate editor of Trailer/Body Builders. Before joining the three publications in Houston TX, he wrote for various food industry trade publications in other parts of the country. Wilson has a bachelor's degree in journalism from the University of Kansas and served three years in the U.S. Army.

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