Watco Companies

Last updated
Watco Transportation Services, L.L.C.
Overview
Headquarters Pittsburg, Kansas
Dates of operation1983
Technical
Track gauge 4 ft 8 12 in (1,435 mm) standard gauge
Length4,500 track miles

Watco Companies, L.L.C. (Watco) is a transportation company based in Pittsburg, Kansas, formed in 1983 by Charles R. 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 41 short line railroads in the U.S. and Australia. It is one of the largest short line railroad companies in the United States. As of December 2018, it operated on 5,500 miles (8,900 km) of leased and owned track. Also under transportation is the contract switching the company provides service for 30 customers. That is the service that Watco originally offered before it branched out into other areas.

Contents

Watco’s mechanical division has 19 car repair shops and is one of 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.

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.

Watco's newest division, Watco Supply Chain Services, provides supply chain logistics for highway, intermodal, rail, and international logistics.   

History

CBH class hauled train at Yilliminning, Western Australia in October 2013 CBH 10 entering Yillimining yard.JPG
CBH class hauled train at Yilliminning, Western Australia in October 2013
Watco CF7 #5 at Pittsburg, Texas in August 2015 Pittsburg August 2015 12 (Watco CF7 No. 5).jpg
Watco CF7 #5 at Pittsburg, Texas in August 2015

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 entered the Australian rail haulage market when it was awarded a 10-year contract to operate grain services for the CBH Group of Western Australia. [1] [2] Operations commenced in March 2012. [3] [4] In late 2016 Watco Australia was awarded an infrastructure train contract with Brookfield Rail operating ballast and rail work trains.

On December 15, 2010, 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 made an initial $50 million preferred shares investment on January 3, 2011. [5] Additional $50 million equity investment completed in December 2011. [6] Kinder Morgan will receive 3.25% quarterly distribution on the equity investment. 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 short line in Alabama operated by Watco. [7]

On December 28, 2011 Watco began operations of the Swan Ranch Railroad (SRRR) [8] 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. [9] [10]

On June 4, 2014, Watco and The Greenbrier Companies, Inc NYSE :  GBX announced that they will create an equally owned joint venture, GBW Railcar Services, LLC, providing the railcar repair services. [11] This joint venture was dissolved in August 2018.

Holdings

RailroadBegan operationsTrack length (mi.)CommoditiesFacts
Alabama Southern Railroad (ABS)November 200585 [12] iron and steel, paper products, aggregatesAcquired through lease agreement with KCS
Alabama Warrior Railway (ABWR)August 200915 [13] coal, aggregates, pipe, scrap steel, cementStarted as Marylee Railroad in 1895
Ann Arbor Railroad (AA)January 201350 [14] automotive materialsPurchased from Ann Arbor Acquisition Corp, services mostly Chrysler plant producing Jeep Cherokees
Arkansas Southern Railroad (ARS)October 200562 [15] corn and soybean productsTwo branches, 32-mile northern branch and a 30-mile southern branch
Austin Western Railroad (AWRR)October 2007155 [16] [17] aggregates, crushed limestone, calcium bicarbonate, lumber beer, chemicals, plastic, paperBegan sharing the railway with commuter operations in 2010 with Austin, TX
Autauga Northern Railroad (AUT)April 201144 [18] [19] paper products and aggregatesThird shortline Watco acquired in Alabama
Baton Rouge Southern Railroad (BRS)November 20081.5 [20] chemicals, bauxite, plastic pellets, raw coke, calcinated cokeProvides car storage and use by local chemical companies
Bogalusa Bayou Railroad (BBAY)2015xxxpaperServes Bogalusa’s International Paper
Birmingham Terminal Railway (BHRR)February 201275.9 [21] iron ore, coal, steel sheets and pipeThe dragon in the logo represents the fire that is used to smelt steel
Blue Ridge Southern Railroad (BLU)July 201493woodchips, chemicals, paper, cementFormer Norfolk Southern T-Line (Murphy Branch), W-Line, and TR-line. Based in Canton, NC.
Boise Valley Railroad (BVRR)November 200936 [20] frozen vegetables, lumber, fertilizer, fuelsShares customers with the YSVR and EIRR
Decatur & Eastern Illinois Railroad (DREI)September 2018 [22] 127 [22] Operates on ex-CSX Transportation trackage acquired in 2018
Eastern Idaho Railroad (EIRR)1993270 [23] corn, sugar, wheat, frozen vegetables, coalLargest Union Pacific sale
Ithaca Central Railroad (ITHR)December 8, 201848,8 [24] salt, coal, plastics, magnesium chlorideLeased from Norfolk Southern
Grand Elk Railroad (GDLK)March 2009151 [25] lumber products, corn, steelInterchanges with 3 Class I railroads
Great Northwest Railroad (GRNW)March 200477 [26] [27] lumber, products, fertilizers, aggregatesCompetition to reach Lewiston while the line was being built was called the "Clearwater River Railroad Wars"
Kanawha River Railroad (KNWA)July 2016309 [28] Chemicals, Aggregates, Agricultural Products [28] Second railroad to be acquired by Watco, LLC in the state of West Virginia. Appalachian & Ohio was briefly operated by Watco Transportation Services LLC. Operates on former Norfolk Southern tracks in Ohio and West Virginia.
Kansas & Oklahoma Railroad (KO)July 2001820 [29] [30] wheat, grain products, chemicals, soybean productsHas state and federal shipping agreements
Kansas City Terminal Railway (KCT)xxxxxxTransfer service and scrap haulerKansas City area
Kaw River Railroad (KAW)June 200443 [31] [32] iron and steel, corn starch, lumber products, aggregates, plastics, industrial productsExpansions in 2005, 2006, and 2007
Louisiana Southern Railroad (LAS)September 2005167 [33] [34] paper products, aggregates, oilsInterchanges at Gibsland, Sibley, and Pineville
Mission Mountain Railroad (MMT)December 200440 [35] [36] lumber, wheatOriginally part of the Haskell Pass, built in 1904
Mississippi Southern Railroad (MSR)April 200528 [37] [38] corn and soybeansInterchanges with KCS at Newton
Pacific Sun Railroad (PSRR)October 200862 [39] corn, soy, lumber, plastic pellets, beer, paints, recyclablesCrews accommodate the schedules of BNSF, coaster, Amtrak and Metro link passenger trains
Palouse River & Coulee City Railroad (PCC)1992202 [40] wheat, frozen vegetables$25 million in state-sponsored track rehabilitation backed by 100-year lease
Pennsylvania Southwestern Railroad (PSWR)April 200312 [41] [42] steel scrap, steel productsFirst Watco operation to service a steel mill
Pecos Valley Southern Railway (PVSR)201219sand, gravel, crude oilFormerly operated by Capitol Aggregates
San Antonio Central Railway (SAC)2012xxxxxxOperates within Port San Antonio’s East Kelly Railport at night
Stillwater Central Railroad (SLWC)1998279 [43] crude oil, sand, gypsum, cement, stone, steelHigher than industry average rating of customer service and personal attention
South Kansas and Oklahoma Railroad (SKOL)March 1987380 [43] grains, cement, coal, fertilizer, aggregates, steel, sandOperates out of the historic Cherryvale, Kansas depot
Swan Ranch Railroad (SRRR)December 20113.25 [44] asphaltWhen finished, the Swan Ranch Industrial Park will encompass 7,200 acres
Timber Rock Railroad (TIBR)1998168 [45] aggregates, lumber products, plastics, fuelAdditions in 2002 and 2004; services the founding operation site in DeRidder, LA
Vicksburg Southern Railroad (VSOR)January 200621 [46] [47] lumber, steelFormerly known as the Redwood Branch
Watco Australia May 2012NA - operator onlygrainFirst international operation of Watco
Wisconsin & Southern Railroad Co. (WSOR)January 2012700 [48] lumber, coal, liquid and dry fertilizers, corn, beans, plastic, aggregates, ethanol, liquid petroleumWisconsin's second-largest railroad
Yellowstone Valley Railroad (YSVR)August 2005172 [49] [50] grains, plastics, ethanol, crude oil, sandAwarded BNSF Shortline Achievement Award for development of Customers in 2009

Related Research Articles

Wisconsin and Southern Railroad

The Wisconsin and Southern Railroad is a Class II regional railroad in Southern Wisconsin and Northeastern Illinois currently operated by Watco Companies. It operates former Chicago, Milwaukee, St. Paul and Pacific Railroad and Chicago and North Western Railway (C&NW) trackage, mostly acquired by the state of Wisconsin in the 1980s.

RailAmerica

RailAmerica, Inc., based in Jacksonville, Florida, was a holding company of a number of short-line railroads and regional railroads in the United States and Canada.

The Alabama Southern Railroad is a class III railroad that operates in the southern United States. The ABS is one of several short line railroads owned by Watco Companies. The railroad operates an 85-mile (137 km) line leased from the Kansas City Southern Railway. It began operating in 2005.

The Chattahoochee and Gulf Railroad was a short line railroad operating from 2003 to 2006 between Columbus, Georgia and Dothan, Alabama, on former Central of Georgia and Norfolk Southern tracks. Initially the railroad was a subsidiary of Gulf and Ohio Railways. In 2006, the railroad was acquired by Genesee & Wyoming Inc. and combined with the adjacent H and S Railroad out of Dothan to form the Chattahoochee Bay Railroad.

Conecuh Valley Railroad

The Conecuh Valley Railway, L.L.C. connects with the CSX at Troy, Alabama, and travels 15.04 miles (24.20 km) to Goshen, Alabama. This short line railroad was created after 2001 from the former Southern Alabama Railroad and is currently owned and operated by Genesee & Wyoming.

Georgia Southwestern Railroad

The Georgia Southwestern Railroad is a Class III short line railroad company that operates over 234 miles (377 km) of track in southwestern Georgia and southeastern Alabama. Beginning in 1989 as a division of the South Carolina Central Railroad on a pair of former CSX Transportation lines, the railroad has since undergone a number of transformations through abandonments and acquisitions, before arriving at its current form. The railroad was formerly a RailAmerica property before going independent, and in 2008 it was acquired by Genesee & Wyoming Inc.

Heart of Georgia Railroad

The Heart of Georgia Railroad is a shortline railroad created in 1999 to lease and operate 177 miles (285 km) of track owned by the Georgia Department of Transportation between Mahrt, Alabama and Vidalia, Georgia, in the United States. The railroad has since expanded to include more than 219 miles (352 km) of track, reaching as far as Midville, Georgia. Initially only the portion from Rochelle to Preston, Georgia was utilized, with the Preston-Mahrt and Rochelle-Vidalia lines out of service. The Heart of Georgia also hosts the SAM passenger excursion train and is owned by parent company Atlantic Western Transportation Company.

Kansas City Terminal Railway

The Kansas City Terminal Railway is a Class III terminal railroad that serves as a joint operation of the trunk railroads that serve the Kansas City metropolitan area, the United States' second largest rail hub after Chicago. It is operated by the Kaw River Railroad.

South Kansas and Oklahoma Railroad

South Kansas and Oklahoma Railroad is a short line railroad which operates 511 miles (822 km) of rail lines in Kansas, Oklahoma and Missouri that used to belong to Missouri Pacific, Frisco and Santa Fe lines. SKOL is a unit of Watco Companies. The present railroad was created in July 2000, when WATCO merged one short line railroad, the Southeast Kansas Railroad (SEKR), with another short line, the South Kansas and Oklahoma Railroad. SKOL was the surviving company.

Gulf and Ohio Railways

Gulf & Ohio Railways is a holding company for four different short-line railroads in the Southern United States, as well as a tourist-oriented passenger train, and locomotive leasing and repair service through Knoxville Locomotive Works. Gulf & Ohio maintains its corporate headquarters in Knoxville, Tennessee.

The Pine Belt Southern Railroad was a shortline railroad formerly operating on two disconnected track segments in east central Alabama. Upon its start in 1995 the railroad ran over a branch from Nuckols to Hurtsboro, Alabama. In 1996 a second branch was acquired, extending from Roanoke, Jct., near Opelika, to Lafayette, Alabama. Together the lines totaled 42.4 miles (68.2 km) and the railroad was controlled by Richard Abernathy.

The Youngstown and Southeastern Railroad was a short-line railroad subsidiary of the Indiana Boxcar Corporation that operates freight trains between Youngstown, Ohio and Darlington, Pennsylvania, United States. The line is owned by the Columbiana County Port Authority, leased to the Eastern States Railroad, which is owned by the line's primary shipper, and contracted out to the YSRR. Freight is interchanged with CSX Transportation and the Norfolk Southern Railway at the Youngstown end.

The Winamac Southern Railway is a short-line railroad in northern Indiana, United States, operated under lease by the Toledo, Peoria and Western Railway. It owns two lines radiating from Logansport to Kokomo and Bringhurst, and formerly a third to Winamac, all former Pennsylvania Railroad lines acquired from Conrail in 1993. It hauls mainly outbound grain and inbound agricultural supplies, connecting with the Toledo, Peoria and Western Railway at Logansport and with the Central Railroad of Indianapolis at Kokomo. Until 2009, the Central Railroad of Indianapolis operated the company as agent.

West Texas and Lubbock Railway

The West Texas and Lubbock Railway is a shortline railroad in Texas, owned by Watco Companies. It connects the BNSF Railway in Lubbock with agricultural and oil-producing areas to the west and southwest. The company operates 107 miles of two ex-Atchison, Topeka and Santa Fe Railway lines, extending to Whiteface and Seagraves parallel to State Highway 114 and U.S. Highway 62. The primary commodities hauled are fertilizer, construction aggregates, grain, cotton, chemicals, peanuts and plastics.

Warren and Trumbull Railroad

The Warren and Trumbull Railroad is a part of the Ohio Central Railroad System, which was bought by Genesee & Wyoming Inc. in 2008, operating three lines in and near Warren. It began operations in 1994 on a line formerly operated by CSX Transportation, and expanded in 1996 on two ex-Conrail lines.

The Vicksburg Southern Railroad is a Shortline railroad in and near Vicksburg, Mississippi, United States, owned by Watco. It connects with the Kansas City Southern Railway's Meridian Speedway in Vicksburg, and stretches north to Redwood and south to Cedars. The line was once part of a main line between Memphis and New Orleans, completed by the Louisville, New Orleans and Texas Railway, a predecessor of the Illinois Central Railroad, in about 1884. The Illinois Central Gulf Railroad sold the remaining portions near Vicksburg, along with the present Meridian Speedway, to the MidSouth Rail Corporation in 1986, and in 1993 the Kansas City Southern Railway (KCS) gained control of MidSouth, subsequently absorbing it. The newly created Vicksburg Southern leased the lines from KCS in January 2006.

The V&S Railway is a shortline railroad that operates two disconnected lines in the U.S. state of Kansas. It is affiliated with A&K Railroad Materials. The company acquired its first line, a former Atchison, Topeka and Santa Fe Railway line between Medicine Lodge and a BNSF Railway junction at Attica, from the Central Kansas Railway in 2000. In 2006 it expanded its operations by acquiring from the Hutchinson and Northern Railway a short segment of former interurban in eastern Hutchinson, where it interchanges with the BNSF Railway, Union Pacific Railroad, and Kansas and Oklahoma Railroad. Other railroads under common control with the V&S are the out-of-service Kern Valley Railroad in Colorado, the Gloster Southern Railroad in Louisiana and Mississippi, the Grenada Railway and Natchez Railway in Mississippi, a portion of the former Rock Island from St. Louis to Union, Missouri operated by the Missouri Central and the Southern Manitoba Railway in Manitoba.

Morehead and South Fork Railroad Terminal switching railroad

The Morehead and South Fork Railroad is a terminal switching railroad serving the port facilities of Morehead City, North Carolina and Radio Island with 9.5 miles (15.3 km) of track. Created in 2005 as a successor to Carolina Rail Services, the railroad was initially a Gulf & Ohio subsidiary before a change of contract in 2010 transferred operational responsibility to the Carolina Coastal Railway.

The Autauga Northern Railroad is a shortline operating between Maplesville, Alabama and a plant of the International Paper Company near Prattville, Alabama, 43.62 miles (70.20 km). This trackage is leased from Norfolk Southern and was originally operated by the Mobile & Ohio, Gulf Mobile & Ohio, and Illinois Central Gulf railroads as part of their line between Montgomery, Alabama and Tuscaloosa, Alabama. In addition, Autauga Northern uses 10.08 miles (16.22 km) of trackage rights over CSX, also ex-GM&O, to gain access into Montgomery. The lease from NS was approved in February 2011, and operations began in April 2011 as part of Watco Companies.

Watco Australia is a rail haulage operator that was formed in 2010 to haul grain for the CBH Group in Western Australia. In 2019 it will commence operating in Queensland under a contract with GrainCorp. It is a subsidiary of Watco Companies.

References

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  2. Watco wins CBH grain rail contract Archived 2014-02-03 at the Wayback Machine Rail Express December 15, 2010
  3. CBH, Watco rail agreement starts early Archived 2014-02-22 at the Wayback Machine World Grain April 2, 2012
  4. CBH grain wagons go to work early Archived 2014-02-22 at the Wayback Machine Farm Weekly April 5, 2012
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