2025 Triple Threat: Overcoming Key Challenges in Terminal Operations

As we progress through 2025, terminal operators in the refined fuels industry face an evolving landscape of challenges. This article explores the three pressing issues confronting executives and managers in terminal operations, along with strategic solutions leveraging advanced terminal automation systems.

 

Operational Efficiency in a Consolidating Market

In an era of fluctuating demand and razor-thin margins, operational efficiency has become more critical than ever. Terminal operators must optimize every aspect of their operations to remain competitive and profitable.

The Challenge: The oil and gas industry has experienced a substantial number of high-value mergers and acquisitions, particularly in the last two years. This led to the emergence of larger operators who leverage economies of scale, optimize supply chains, and offer competitive pricing. This has cascading impacts on terminal operators.

Two recent examples are Sunoco LP’s purchase of terminals and distribution assets from Zenith Energy and Phillips 66’s Acquisition of EPIC NGL Assets earlier this year. The strategic move allows Phillips 66 to optimize its natural gas liquids value chain, reducing its reliance on external distribution networks and potentially decreasing demand for services from smaller, independent terminal operators.

Consolidation, such as these, pose significant challenges for terminal operators and increases pressure to improve their own efficiency to remain competitive.

The Solution: Terminals lose millions of dollars in sales annually due to operational inefficiencies. Implementing an advanced, integrated terminal automation system (TAS) can dramatically improve margin optimization with systems that offer real-time inventory tracking, optimized loading schedules, seamless back-office integration, and automated electronic bills of lading (eBOLs) generation.

For example, workflows that digitally monitor eBOLs as the data comes into the system essentially perform automated reconnaissance that removes uncertainty and manual processes required to find missing BOLs. Based on DTN data, this can save an energy supplier as much as $25,000 per missing BOL in one month.

By leveraging the capabilities of TAS, terminal operators can streamline processes, reduce errors, and make data-driven decisions to optimize throughput and inventory management.

 

Regulatory Compliance and Security

The industry has experienced a substantial number of high-value mergers and acquisitions with cascading impacts on terminal operators.
In 2025, terminal operators in the United States are navigating a dynamic regulatory environment shaped by recent federal actions and evolving environmental standards. Stricter regulations enacted in 2024 will still be at play as terminal operators continue to adapt to meet current compliance standards.

The Challenge: The regulation updates focus on emissions reduction, cleaner fuel standards, and enhanced compliance protocols which require investments in technology, process optimization, and supply chain collaboration.

Consider the Environmental Protection Agency’s updated regulations that impose stricter limits on total organic compound emissions from bulk gasoline terminals. New facilities must now ensure TOC levels in vents do not exceed 550 ppm. Upgrading automation infrastructure allows for remote monitoring and control of loading and unloading processes.

Increased compliance audits now emphasize the tracking, monitoring, and reporting of GHG emissions, including methane and carbon dioxide. Terminals must adopt digital tools for real-time emissions tracking and ensure transparency in reporting, adding administrative and operational burdens.

The Solution: Advanced TAS solutions address compliance and security concerns with comprehensive features like access control, real-time monitoring, automated reporting, and cybersecurity measures.

These systems enhance security and regulatory compliance through granular control. Notably, TAS streamlines daily operations, enabling terminal personnel to focus on critical challenges, pressing issues, and strategic initiatives, making it an invaluable asset for operators.

 

Customer Experience and Partner Satisfaction

In an increasingly competitive market, providing superior experience for customers and partners is crucial for retaining business and attracting new opportunities.

The Challenge: Terminal teams must address growing expectations for faster turnaround times, demand for real-time information access, the need for simplified interfaces, pressure to reduce waiting times and streamline processes.

The Solution: Modern TAS solutions offer user-friendly driver interfaces, self-service portals for real-time information access, automated communication systems, and integration with partner systems. These capabilities significantly enhance satisfaction among drivers, carriers, and other stakeholders, leading to higher retention rates and increased market share.

Phillips 66 reported a TAS solution helped them not only operate its terminals more effectively but also meet their customers’ needs for up-to-date information and improve communication between all parties.

 

Embracing Integrated Solutions for Future Success

By leveraging the capabilities of TAS, terminal operators can streamline processes, reduce errors, and make data-driven decisions to optimize throughput and inventory management.
As we navigate the complexities of terminal operations in 2025, addressing these challenges requires a holistic, technology-driven approach. Solutions like DTN for Terminal Operators offer a comprehensive, integrated suite designed to meet the evolving needs of terminal operators and owners. This type of platform provides a centralized system that connects various aspects of terminal operations, resulting in a more agile, efficient, and customer-centric operation.

For executives, the strategic implementation of these systems offers a clear path to improved profitability, reduced risk, and enhanced market position. For terminal managers, it provides the tools necessary to optimize day-to-day operations, ensure compliance, and deliver exceptional service.

As the industry continues to evolve, those who embrace these integrated solutions will find themselves leading the way into a more efficient, secure, and customer-focused future. By leveraging DTN industry leading solutions, terminal operators can transform challenges into opportunities, setting new standards of excellence in the refined fuels industry.

Discover the DTN solution terminal operators need to remain competitive.