| Watco Companies Inc. | |
|---|---|
| Dates of operation | 1983 to present– |
| Track gauge | 4 ft 8 1⁄2 in (1,435 mm) (standard gauge) |
| Length | 3,500 miles |
| Headquarters | Pittsburg, Kansas |
Watco Companies, Inc. (WCI) is a Pittsburg, Kansas-based transportation company that was formed in 1983 by Charles R. (Dick) Webb. Watco is composed of three divisions: transportation, mechanical and transloading. WCI is the owner of Watco Transportation Services, Inc. (WTS), which operates 23 shortline railroads in 18 states and is one of the largest shortline railroad companies in the United States. As of July 2010 they operated on 3,500 miles (5,600 km) of leased and owned track. Also lumped under transportation is the contract switching that the company provides service for 23 customers. This is the service that Watco originally offered before branching out into other areas.
Watco’s mechanical division has 14 car repair shops and is the largest mechanical services provider in the United States. They provide program, contract and emergency repairs. These services include maintenance of all types of cars including coal fleets, the preparation and cleaning of boxcars and refrigerated cars. There are 19 mobile repair shops and four locomotive shops in the Watco network.
The transloading division operates seven warehouses throughout the country. They also operate several transloading facilities and specialize in loading and unloading railcars and moving commodities to their next destination.
Watco also owns Greens Port Industrial Park on the Houston Ship Channel in Harris County, Texas.
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Watco Companies was started in 1983 by Charles R. "Dick" Webb. The first operation was an industrial switching operation in DeRidder, Louisiana, that is still in existence. Webb then started his first mechanical operation, a railcar repair shop in Coffeyville, Kansas.
The Coffeyville mechanical shop was held captive to the major rail lines, and during discussions with the Union Pacific the opportunity arose to purchase the line running from Nevada, Missouri, to Coffeyville. This was one of the Union Pacific’s first shortline sales. Watco then looked to the West Region, acquiring the Blue Mountain Railroad in 1998, the Palouse River and Coulee City Railroad in 1992 and the Eastern Idaho Railroad in 1993.
In 1998, they began operating the Stillwater Central Railroad in Oklahoma and the Timber Rock Railroad in Texas. The Kansas and Oklahoma Railroad was acquired in 2001 and the Pennsylvania Southwestern Railroad in 2003. In 2004, they started operations of the Great Northwest Railroad in Washington, the Kaw River in Kansas and Missouri, and the Mission Mountain Railroad in Montana. In 2005 they began operating the Alabama Southern Railroad, the Louisiana Southern Railroad, the Mississippi Southern Railroad, and the Yellowstone Valley Railroad in Montana. The Austin Western Railroad was started in 2007 and shares rail with passenger rail. They also acquired Millennium Rail, Inc., a mechanical service company in 2007. The Baton Rouge Southern and the Pacific Sun Railroad were started in 2008, and they also acquired the mechanical services company Fitzgerald Railcar Services, Inc., and Reload, Inc., a 25-year experienced transloading business. The Grand Elk Railroad began operations in 2009.
In December 2010 Watco was awarded a long-term grain rail contract to provide services to the CBH Group of Western Australia. Operations will commence in May 2012.
On December 15, Kinder Morgan Energy Partners, L.P. NYSE: KMP announced an agreement whereby Kinder Morgan will invest up to $150 million over the next year in Watco Companies in exchange for a preferred equity position in the company. Kinder Morgan’s initial investment will be $50 million upon closing, which is scheduled to occur in January 2011. Kinder Morgan is a leading pipeline transportation and energy storage company in North America. The transaction provides capital to Watco for further expansion of specific projects and offers Kinder Morgan the opportunity to share in the subsequent growth.
In April 2011, Watco began operating the Autauga Northern Railroad (AUT), between Maplesville and Autauga Creek, Alabama, the third shortline in Alabama operated by Watco.[1]
In late November and early December 2011, Watco purchased two shortline and regional railroads, the Wisconsin and Southern Railroad and the Birmingham Southern Railroad,[2][3] as well as forming the new Swan Ranch Railroad.[4]