Watco Companies
Encyclopedia
Watco Companies, Inc. 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 railroad
s in 18 states and is one of the largest shortline railroad companies in the United States. As of July 2010 they operated on 3500 miles (5,632.7 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
.
.
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 of 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 of 2012.
On December 15, Kinder Morgan Energy Partners, L.P. 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 of 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.
On April 11, Watco began the start-up of the Autauga Northern Railroad
(AUT). The AUT is Watco’s third railroad in Alabama continuing a strong partnership with both the state and its businesses.
{| class="wikitable sortable"
!Company
!Date acquired
!Notes
|-
|Alabama Southern Railroad
|
|-
|Alabama Warrior Railway
|
|-
|Arkansas Southern Railroad
|
|-
|Austin Western Railroad
|
|-
|Autauga Northern Railroad
|
|-
|Baton Rouge Southern Railroad
|
|-
|Boise Valley Railroad
|
|-
|Eastern Idaho Railroad
|
|-
|Grand Elk Railroad
|
|-
|Great Northwest Railroad
|
|-
|Kansas and Oklahoma Railroad
|
|-
|Kaw River Railroad
|
|-
|Louisiana Southern Railroad
|
|-
|Mission Mountain Railroad
|
|-
|Mississippi Southern Railroad
|
|-
|Pacific Sun Railroad
|
|-
|Palouse River and Coulee City Railroad
|
|-
|Pennsylvania Southwestern Railroad
|
|-
|South Kansas and Oklahoma Railroad
|
|-
|Stillwater Central Railroad
|
|-
|Timber Rock Railroad
|
|-
|Vicksburg Southern Railroad
|
|-
|Yellowstone Valley Railroad
|
|-bgcolor=e7e7e7
Pittsburg, Kansas
Pittsburg is a city in Crawford County, in southeastern Kansas, United States. It is the most populous city in Crawford County and in southeastern Kansas. As of the 2010 census, the city population was 20,233.-History:...
-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 railroad
Shortline railroad
A shortline railroad is a small or mid-sized railroad company that operates over a relatively short distance relative to larger, national railroad networks. The term is used primarily in the USA and Canada...
s in 18 states and is one of the largest shortline railroad companies in the United States. As of July 2010 they operated on 3500 miles (5,632.7 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
Houston Ship Channel
The Houston Ship Channel, located in Houston, Texas, is part of the Port of Houston—one of the United States's busiest seaports. The channel is the conduit for ocean-going vessels between the Houston-area shipyards and the Gulf of Mexico.-Overview:...
in Harris County, Texas
Harris County, Texas
As of the 2010 Census, the population of the county was 4,092,459, White Americans made up 56.6% of Harris County's population; non-Hispanic whites represented 33.0% of the population. Black Americans made up 18.9% of the population. Native Americans made up 0.7% of Harris County's population...
.
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, KansasCoffeyville, Kansas
Coffeyville is a city situated along the Verdigris River in the southeastern part of Montgomery County, located in Southeast Kansas, in the Central United States. As of the 2010 census, the city population was 10,295...
.
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
Nevada, Missouri
Nevada is a city in Vernon County, Missouri, United States. The population was 8,327 at the 2011 census. It is the county seat of Vernon County. Nevada is the home of Cottey College, a junior college for women operated by the P.E.O. Sisterhood....
, 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
Eastern Idaho Railroad
The Eastern Idaho Railroad started running on November 21, 1993, as a collection of two disconnected clusters of former Union Pacific branches. EIRR is owned by Watco, Inc , of Pittsburg, Kansas, a short line operator...
in 1993.
In 1998, they began operating the Stillwater Central Railroad
Stillwater Central Railroad
Stillwater Central Railroad is a shortline railroad operating in Oklahoma.A subsidiary of the Watco Companies, the SLWC operates over of track in the state from Sapulpa through Oklahoma City through Lawton to Snyder and has trackage rights over BNSF from Sapulpa to Tulsa, and from Snyder to Long....
in Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
and the Timber Rock Railroad in Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. The Kansas and Oklahoma Railroad
Kansas and Oklahoma Railroad
The Kansas and Oklahoma Railroad is a shortline railroad operating in the western United States.The tracks Kansas and Oklahoma operate on include the Kansas City-Colorado main line formerly operated by the Missouri Pacific and later Union Pacific railways....
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
Kansas
Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...
and Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
, and the Mission Mountain Railroad in Montana
Montana
Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
. In 2005 they began operating the Alabama Southern Railroad, the Louisiana Southern Railroad, the Mississippi Southern Railroad, and the Yellowstone Valley Railroad
Yellowstone Valley Railroad
The Yellowstone Valley Railroad is a shortline railroad in northeastern Montana, also crossing into North Dakota. It operates two branch lines leased from the BNSF Railway in 2005 - Snowden to Glendive and Bainville to Scobey - connected by trackage rights over BNSF's Northern Transcon between...
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
Grand Elk Railroad
The Grand Elk Railroad is a Class III railroad which operates in the states of Indiana and Michigan. It is one of several short-line railroads owned by Watco Companies of Pittsburg, Kansas....
began operations in 2009.
In December of 2010 Watco was awarded a long-term grain rail contract to provide services to the CBH Group of Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
. Operations will commence in May of 2012.
On December 15, Kinder Morgan Energy Partners, L.P. announced an agreement whereby Kinder Morgan
Kinder Morgan
Kinder Morgan, Inc. is an American energy company. It is also, through a subsidiary, the general partner of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline and terminal limited partnership....
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 of 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.
On April 11, Watco began the start-up of the Autauga Northern Railroad
Autauga Northern Railroad
The Autauga Northern Railroad is a shortline operating between Maplesville, Alabama and a plant of the International Paper Company near Prattville, Alabama, . This trackage is leased from Norfolk Southern and was originally operated by the Mobile & Ohio, Gulf Mobile & Ohio, and Illinois Central...
(AUT). The AUT is Watco’s third railroad in Alabama continuing a strong partnership with both the state and its businesses.
{| class="wikitable sortable"
!Company
!Date acquired
!Notes
|-
|Alabama Southern Railroad
Alabama Southern Railroad
The Alabama Southern Railroad is a class III railroad that operates in the southern United States.ABS is one of several short line railroads owned by the Watco Companies....
|
|-
|Alabama Warrior Railway
Alabama Warrior Railway
The Alabama Warrior Railway is a terminal railroad as reported by the AAR. The ABWR is headquartered in Birmingham, Alabama within the confines of the Walter Industries/Sloss facility and is owned and operated by the Watco Companies of Pittsburg, Kansas. The railroad operates approximately of...
|
|-
|Arkansas Southern Railroad
Arkansas Southern Railroad
The Arkansas Southern Railroad is a short-line railroad which started service in October 2005.ARS operates two disconnected lines consisting of 61 total miles, which are leased from the Kansas City Southern Railway :...
|
|-
|Austin Western Railroad
|
|-
|Autauga Northern Railroad
Autauga Northern Railroad
The Autauga Northern Railroad is a shortline operating between Maplesville, Alabama and a plant of the International Paper Company near Prattville, Alabama, . This trackage is leased from Norfolk Southern and was originally operated by the Mobile & Ohio, Gulf Mobile & Ohio, and Illinois Central...
|
|-
|Baton Rouge Southern Railroad
|
|-
|Boise Valley Railroad
Boise Valley Railroad
The Boise Valley Railroad is a shortline railroad connecting Nampa, Idaho with the state capital Boise, Idaho-History:In late 2009 Boise Valley Railroad purchased the Union Pacific branch from Nampa, Idaho on the main Oregon Short Line to Boise,Idaho....
|
|-
|Eastern Idaho Railroad
Eastern Idaho Railroad
The Eastern Idaho Railroad started running on November 21, 1993, as a collection of two disconnected clusters of former Union Pacific branches. EIRR is owned by Watco, Inc , of Pittsburg, Kansas, a short line operator...
|
|-
|Grand Elk Railroad
Grand Elk Railroad
The Grand Elk Railroad is a Class III railroad which operates in the states of Indiana and Michigan. It is one of several short-line railroads owned by Watco Companies of Pittsburg, Kansas....
|
|-
|Great Northwest Railroad
|
|-
|Kansas and Oklahoma Railroad
Kansas and Oklahoma Railroad
The Kansas and Oklahoma Railroad is a shortline railroad operating in the western United States.The tracks Kansas and Oklahoma operate on include the Kansas City-Colorado main line formerly operated by the Missouri Pacific and later Union Pacific railways....
|
|-
|Kaw River Railroad
|
|-
|Louisiana Southern Railroad
|
|-
|Mission Mountain Railroad
|
|-
|Mississippi Southern Railroad
|
|-
|Pacific Sun Railroad
Pacific Sun Railroad
Pacific Sun Railway is a short line railroad in San Diego County, California that works on the Escondido Sub, the Miramar Branch, and in Stuart Mesa Yard. It is based from Stuart Mesa Yard. It is owned by Watco Companies.-History:...
|
|-
|Palouse River and Coulee City Railroad
|
|-
|Pennsylvania Southwestern Railroad
|
|-
|South Kansas and Oklahoma Railroad
South Kansas and Oklahoma Railroad
South Kansas and Oklahoma Railroad is a short line railroad which operates 511 miles of rail lines in Kansas, Oklahoma and Missouri. SKOL is a unit of Watco Companies....
|
|-
|Stillwater Central Railroad
Stillwater Central Railroad
Stillwater Central Railroad is a shortline railroad operating in Oklahoma.A subsidiary of the Watco Companies, the SLWC operates over of track in the state from Sapulpa through Oklahoma City through Lawton to Snyder and has trackage rights over BNSF from Sapulpa to Tulsa, and from Snyder to Long....
|
|-
|Timber Rock Railroad
|
|-
|Vicksburg Southern Railroad
Vicksburg Southern Railroad
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...
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|-
|Yellowstone Valley Railroad
Yellowstone Valley Railroad
The Yellowstone Valley Railroad is a shortline railroad in northeastern Montana, also crossing into North Dakota. It operates two branch lines leased from the BNSF Railway in 2005 - Snowden to Glendive and Bainville to Scobey - connected by trackage rights over BNSF's Northern Transcon between...
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|-bgcolor=e7e7e7