Watco Companies

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Watco Transportation Services, L.L.C.
Dates of operation 1983–
Track gauge 4 ft 8 1⁄2 in (1,435 mm) (standard gauge)
Length 4,500 track miles
Headquarters Pittsburg, Kansas

Watco Companies, L.L.C. (Watco) is a Pittsburg, Kansas-based transportation company formed in 1983 by Charles R. (Dick) Webb. Watco is composed of four divisions: transportation, mechanical, terminal and port services, and compliance. Watco is the owner of Watco Transportation Services, L.L.C. (WTS), which operates 30 shortline railroads in the U.S. and Australia. It is one of the largest shortline railroad companies in the United States. As of May 2011 they operated on 4,500 miles (7,200 km) of leased and owned track. Also under transportation is the contract switching the company provides service for 27 customers. This is the service that Watco originally offered before branching out into other areas.

Watco’s mechanical division has 16 car repair shops and is the largest mechanical services provider in the United States.[citation needed] They provide program, contract and emergency repairs. These services include maintenance of all types of cars including tank cars and coal fleets, and the preparation and cleaning of boxcars and refrigerated cars. There are 23 railroad repair shops, eight locomotive shops and five contract repair shops in the Watco network.

The terminal and port services division operates ten 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 operates two port services in the Gulf Region. Greens Port Terminal on the Houston Ship Channel in Harris County, Texas and Port Birmingham Terminal on the Black Warrior River in Alabama both provide access to the Gulf of Mexico.

History

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 in 1985.

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 the Union Pacific’s first short line sale. 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 commenced in March of 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]

On December 28, 2011 Watco began operations of the Swan Ranch Railroad (SRRR)[2] in the Swan Ranch Industrial Park in Cheyenne, Wyoming. On January 1, 2012, Watco gained majority ownership of the Wisconsin and Southern Railroad, a regional railroad in Wisconsin, and on February 1, 2012 took over operations of the Birmingham Southern Railroad.[3][4]

Holdings

Railroad Began operations Track length (mi.) Commodities Facts
Alabama Southern Railroad (ABS) November 200585 [5]iron and steel, paper products, aggregates Acquired through lease agreement with KCS
Alabama Warrior Railway (ABWR) August 2009 15 [6] coal, aggregates, pipe, scrap steel, cement Started as Marylee Railroad in 1895
Arkansas Southern Railroad (ASR) October 200562 [7] corn and soybean products Two branches, 32-mile northern branch and a 30-mile southern branch
Austin Western Railroad (AWRR) October 2007 155 [8][9] aggregates, crushed limestone, calcium bicarbonate, lumber beer, chemicals, plastic, paper Began sharing the railway with commuter operations in 2010 with Austin, TX
Autauga Northern Railroad (AUT) April 2011 44 [10][11] paper products and aggregates Third shortline Watco acquired in Alabama
Baton Rouge Southern Railroad (BRS) November 2008 1.5[12] chemicals, bauxite, plastic pellets, raw coke, calcinated coke Provides car storage and use by local chemical companies
Birmingham Terminal Railway (BHRR)February 2012 75.9 [13] iron ore, coal, steel sheets and pipe The dragon in the logo represents the fire that is used to smelt steel
Boise Valley Railroad (BVRR) November 2009 36[12]frozen vegetables, lumber, fertilizer, fuels Shares customers with the YSVR and EIRR
Eastern Idaho Railroad (EIRR) 1993 270[14]corn, sugar, wheat, frozen vegetables, coal Largest Union Pacific sale
Great Northwest Railroad (GRNW) March 2004 77 [15][16] lumber, products, fertilizers, aggregates Competition to reach Lewiston while the line was being built was called the "Clearwater River Railroad Wars"
Grand Elk Railroad (GDLK) March 2009 151[17]lumber products, corn, steel Interchanges with 3 Class I railroads
Kansas & Oklahoma Railroad (KO) July 2001 820 [18][19] wheat, grain products, chemicals, soybean products Has state and federal shipping agreements
Kaw River Railroad (KAW) June 2004 43 [20][21] iron and steel, corn starch, lumber products, aggregates, plastics, industrial products Expansions in 2005, 2006, and 2007
Louisiana Southern Railroad (LAS) September 2005 167 [22][23] paper products, aggregates, oilsInterchanges at Gibsland, Sibley, and Pineville
Mission Mountain Railroad (MMT) December 2004 40 [24][25]lumber, wheatOriginally part of the Haskell Pass, built in 1904
Mississippi Southern Railroad (MSR) April 200528[26][27]corn and soybeansInterchanges with KCS at Newton
Pacific Sun Railroad (PSRR) October 200862[28] corn, soy, lumber, plastic pellets, beer, paints, recyclables Crews accommodate the schedules of BNSF, coaster, Amtrak and Metro link passenger trains
Palouse River & Coulee City Railroad (PCC)1992202 [29]wheat, frozen vegetables$25 million in state-sponsored track rehabilitation backed by 100-year lease
Pennsylvania Southwestern Railroad (PSWR) April 200312[30][31] steel scrap, steel productsFirst Watco operation to service a steel mill
South Kansas and Oklahoma Railroad (SKOL)March 1987380 [32] grains, cement, coal, fertilizer, aggregates, steel, sandOperates out of the historic Cherryvale Depot
Stillwater Central Railroad (SLWC)1998279 [33]crude oil, sand, gypsum, cement, stone, steelHigher than industry average rating of customer service and personal attention
Swan Ranch Railroad (SRRR) December 2011 3.25 [34] asphaltWhen finished, the Swan Ranch Industrial Park will encompass 7,200 acres
Timber Rock Railroad (TIBR) 1998 168 [35] aggregates, lumber products, plastics, fuel Additions in 2002 and 2004; services the founding operation site in DeRidder, LA
Vicksburg Southern Railroad (VSOR) January 200621[36][37] lumber, steelFormerly known as the Redwood Branch
Watco Western Australia (WA) May 2012 xxx [38] grain First international operation of Watco
Wisconsin & Southern Railroad Co. (WSOR)January 2012700 [39]lumber, coal, liquid and dry fertilizers, corn, beans, plastic, aggregates, ethanol, liquid petroleum Wisconsin's second-largest railroad
Yellowstone Valley Railroad (YSVR) August 2005172 [40][41] grains, plastics, ethanol, crude oil, sand Awarded BNSF Shortline Achievement Award for development of Customers in 2009

References

  1. ↑ "Watco announces Alabama short line debut". Railway Age. 12 April 2011. Archived from the original on 5 December 2011. Retrieved 6 December 2011. 
  2. ↑ "Watco to operate Swan Ranch Railroad in Wyoming". Trains Magazine. 30 November 2011. Retrieved 23 December 2011. 
  3. ↑ "Watco to buy control of Wisconsin & Southern". Trains Magazine. 29 November 2011. Retrieved 23 December 2011. 
  4. ↑ "Watco adds third railroad in a week". Trains Magazine. 2 December 2011. Retrieved 23 December 2011. 
  5. ↑ Alabama Southern Railroad, accessed June 2012
  6. ↑ STB Finance Docket No. 35204, June 2012
  7. ↑ STB Finance Docket No. 34761, October 26, 2005
  8. ↑ Railroad Retirement Board, Employer Status Determination: Austin Western Railroad, Inc., January 22, 2008
  9. ↑ STB Finance Docket No. 35075, September 14, 2007
  10. ↑ Railroad Retirement Board, Employer Status Determination: Autauga Northern Railroad, Inc., April 14, 2011
  11. ↑ STB Finance Docket No. 35075, April 4, 2011
  12. ↑ 12.0 12.1 STB Finance Docket No. 35169, August 1, 2008
  13. ↑ http://www.bizjournals.com/birmingham/news/2011/12/02/birmingham-southern-railway-acquired.html
  14. ↑ STB Finance Docket No. 34045, June 12, 2001
  15. ↑ Railroad Retirement Board, Employer Status Determination: Great Northwest Railroad, Inc., July 9, 2004
  16. ↑ STB Finance Docket No. 34475, March 19, 2004
  17. ↑ STB Finance Docket No. 35188, November 17, 2008
  18. ↑ Kansas and Oklahoma Railroad, accessed December 2008
  19. ↑ STB Finance Docket No. 34042, June 12, 2001
  20. ↑ Kaw River Railroad, accessed December 2008
  21. ↑ STB Finance Docket No. 34510, June 24, 2004
  22. ↑ Louisiana Southern Railroad, accessed December 2008
  23. ↑ STB Finance Docket No. 34752, October 7, 2005
  24. ↑ Mission Mountain Railroad, accessed December 2008
  25. ↑ OpenDocument STB Finance Docket No. 34635, January 19, 2005
  26. ↑ Mississippi Southern Railroad, accessed December 2008
  27. ↑ STB Finance Docket No. 34683, April 21, 2005
  28. ↑ STB Finance Docket No. 35174, October 3, 2008
  29. ↑ http://www.portofcolumbia.org/index.php?option=com_content&task=view&id=20&Itemid=41
  30. ↑ Pennsylvania Southwestern Railroad, accessed December 2008
  31. ↑ STB Finance Docket No. 34329, April 24, 2003
  32. ↑ http://www.uprr.com/customers/shortline/lines/sko.shtml
  33. ↑ http://www.uprr.com/customers/shortline/lines/slwc.shtml
  34. ↑ http://www.wyomingbusinessreport.com/article.asp?id=61077
  35. ↑ http://www.aslrra.org/our_members/railroad_members/details.cfm?railroadid=1501
  36. ↑ Vicksburg Southern Railroad, accessed December 2008
  37. ↑ STB Finance Docket No. 34766, January 13, 2006
  38. ↑ http://www.world-grain.com/News/News%20Home/World%20Grain%20News/2012/5/CBH%20Watco%20rail%20agreement%20off%20to%20strong%20start.aspx?cck=1
  39. ↑ http://www.jsonline.com/business/wisconsin--southern-railroad-being-purchased-by-kansas-company-7p38943-134679018.html
  40. ↑ Yellowstone Valley Railroad, accessed December 2008
  41. ↑ STB Finance Docket No. 34736, September 1, 2005

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