The 2024 April Dispatch

Safety Anniversaries

March 1 - Jacksonville Port Terminal Railroad (FL) - 7 years

March 2 – New Johnsonville Dedicated Terminal (TN) - 9 years

March 9 - Brighton Switching (CO) - 3 years

March 10 - Bayway Dedicated Terminal (NJ) - 10 years

March 10 - Wood River Transload Terminal (MS) - 2 years

March 12 - Ithaca Central Railroad - 3 years

March 12 - Louisiana Southern Railroad (LA) - 1 year

March 16 – Grand Rivers Mobile Repair Shop (KY) - 4 years

March 24 – Omaha Repair and Maintenance Terminal (NE) - 2 years

Team members and their family members enrolled in Watco’s Critical Illness or Accident Insurance plans can earn $50 annually when they complete a health screening test. If enrolled in both types of coverage, each covered family member is eligible for a $50 reimbursement for each benefit.

Eligible health screening tests include:

• Annual exam

• Colonoscopy

• Immunization

Learn more and file a claim.

• Mammogram

• Routine eye or dental exams

• Well-child exams

Sustainability Efforts Heat Up

At Watco, we’re always looking for ways to do things better. Our short lines are utilizing a simple solution to reduce emissions, be better neighbors, and reduce costs.

Locomotives use water to cool their engines, and most carry 250 gallons or more. If that water freezes, it can destroy the engine and require a complete rebuild or replacement. Preventing that usually means letting engines idle anytime temperatures drop below 40, but that’s not the case anymore.

Auxiliary power units (APU) aren’t new technology, but they’ve become more affordable and easier to install. Engines with APUs equipped don’t have to idle in cold weather, reducing fuel usage, noise, and carbon emissions. And Watco is moving quickly to add more of them to our locomotive fleet.

“Even when we have to tie down out in the field, the diesel heaters are much quieter and use a lot less fuel than idling the locomotives,” Bradford said. “We’re being better neighbors by reducing air and noise pollution, and we’re reducing fuel consumption, maintenance, and expenses at the same time.”

APUs are installed on the locomotive’s engine and generate enough heat to prevent the coolant water from freezing. The electric models require that the units are near a depot, shop, or yard to be plugged in. The other version is powered by a small diesel engine. Locomotives with these installed can be safely tied down anywhere along the line. Some even have both types to maximize versatility.

“We added the heating units to seven locomotives in 2022, and did seven more in 2023,” said Loren Bradford, Kansas & Oklahoma Railroad (KO) general manager. “We purchased 250,000 fewer gallons of diesel, which saved us almost $1.5 million last year.”

Currently, about 35 Watco locations have at least one locomotive with an APU installed, mostly on short lines, terminals, and switching locations in coldweather climates. Sixty-six have been installed in the past two years, bringing the total to 212 locomotives. We’re also awaiting approval for a Diesel Emissions Reduction Act grant. If it’s awarded, the funds will help Watco install 53 more units on six short lines in the next two years, further reducing fuel consumption and emissions.

Several factors affect overall fuel consumption, like total carloads, train weight, miles traveled, and weather. Taking all that into consideration, these APUs were part of the equation that helped Watco reduce overall fuel consumption by 1.1 million gallons in 2023 versus the previous year, removing nearly 11,200 metric tons of CO2 emissions from the atmosphere.

“Locomotive layover heaters are a great investment that has allowed Watco to reduce fuel and lube oil consumption as well as locomotive maintenance costs,” said Wayne Wiza, director of locomotive fleet quality assurance. “These systems are also crucial in reducing our carbon footprint as we strive to reduce diesel exhaust emissions from our locomotive fleet.”

Recognizing Three Difference Makers

What does it take to make an impact at Watco?

Join us in congratulating our first Be the Difference award winners of 2024: Eric Lavergne, Joe McIntire, and Doug Fleming. For their outstanding efforts, each award recipient earns $250.

“Our team is made up of incredible people,” said Rachael Peterson, Watco executive vice president and chief people officer. “That’s why it’s always challenging to select winners for each award category. Thank you for all of the nominations, and congratulations to this quarter’s award recipients.”

One Watco Award - Given to an individual or group of team members whose teamwork generates an exceptional result for a Watco customer.

Crew Leader Eric Lavergne is known for turning problems into solutions. After recently noticing a customer’s freight wouldn’t fit into one truck, he proposed a new loading method that safely stored all the cargo together.

Keep reading to learn how he makes a difference.

Extra Mile Award - Given to an individual or a group of team members who go above and beyond the call of duty at work or in the community.

Joe McIntire may be new to the WSOR, but that hasn’t stopped him from making an impact. As an experienced car repairman, he’s someone teammates can count on to share his industry knowledge and identify ways to complete work efficiently.

Continue reading about our newest Extra Mile Award winner.

Safe Performance Award - Given to an individual or group of team members who take action to ensure safety for fellow team members, customers, suppliers, or property.

The smell of smoke recently woke up Conductor/Engineer Doug Fleming and his daughter, Lexi. After discovering the smoke was a result of a fire next door, they leapt into action to help their neighbors.

Read more to learn how they responded.

Doug Fleming Kaw River Railroad Kansas City (KS)

Joe McIntire Wisconsin & Southern Railroad (WSOR) Janesville (WI)

Eric Lavergne Greens Port Houston (TX)

Railroad Association Inducts Rick Webb into Hall of Fame

Watco’s Rick Webb was inducted March 25 into the Short Line Railroad Hall of Fame. He, along with two others, received the honor from the American Short Line and Regional Railroad Association (ASLRRA) at its conference in Kansas City.

Watco CEO Dan Smith introduced Webb at the conference. He said: “I can tell you that in my mind the definition of a true hall of famer is consistency. That’s what gets you into the hall of fame. And I can see no greater inductee than Rick Webb. Most people don’t realize that every single day Rick gets up, he makes sure he does one thing: He makes sure that he makes someone, or something, better.”

In accepting his award, Webb said he was humbled, honored, and thankful. He thanked and credited others: Smith, the president of the ASLRRA, customers including Class I railroads, vendors, the investors and banking team, his family, and the Watco team.

“I want to thank the Watco team, on whose behalf I’m accepting this award. The service that the Watco team provides our customers is the only way we create value for our customers. Like all short lines, we took over assets that other people didn’t want, and we turned those assets into something more valuable by focusing on the people, not focusing on the asset. We took care of the people who took care of our customers, and guess what happened to the asset? The value grew greatly.

“... I would like to thank every one of our Watco team members for all they do for our customers and giving me the opportunity to receive this award.”

The ASLRRA honor is the latest in industry recognition for Webb. In 2022, he was selected as a Railroad Innovator by Progressive Railroading and RailTrends®. In 2021, Railway Age readers voted him among the railroad industry’s Most Influential Leaders. In addition, he was the 2010 Ernst & Young Entrepreneur of the Year for the Central Midwest Region.

Webb is one of Watco’s most tenured team members, having joined Watco full-time in 1984, not long after his parents started the company. He has held management and leadership positions in operations, purchasing, marketing, accounting and financial management. Webb served as CEO from 1998 to 2018, when he moved into his current role. Among his many achievements, he is credited with establishing Watco operations in Australia, as well as adding ports, terminals and logistics to Watco’s service mix.

Webb is a member of the board of directors of the National Industrial Transportation League and a past member and chair of the Railroad-Shipper Transportation Advisory Council. He serves on the Pittsburg (Kansas) State University Foundation Board of Trustees, Community National Bank‘s Advisory Board of Directors, and U.S. Bank’s Market Board of Directors.

Watco Earns Industry Honors

Along with Rick Webb’s recognition (see previous page), Watco received several additional individual and organizational-level awards at the American Short Line and Regional Railroad Association’s (ASLRRA) 2024 Annual Conference & Exhibition. The event was conducted March 24-26 in Kansas City, Missouri.

The ASLRRA spotlight shone twice on Watco’s Mission Mountain Railroad (MMT). The organization’s Safety Person of the Year Award went to Samantha “Sam” Pederson, who works in railcar repair for the northwestern Montana short line. Pederson was cited for being extremely safety-aware, willing to help out in all MMT operations, and for community involvement that included coaching soccer and stopping at an auto accident where she ended up performing CPR.

And the MMT received the ASLRRA Business Development Award. A series of events had threatened the railroad’s survival and by 2023, the owner of the sole remaining MMT customer (a nearby transload yard) was retiring. The MMT took over the transload yard and began capturing truck traffic inbound from Canada and transloading it to rail, enabling the transload workers to keep their jobs and resulting in the MMT more than doubling its team. Since October 2023, the short line has increased traffic by 50% and revenue by 325%. A benefit to the community: They are able to purchase lumber directly from the MMT.

The ASLRRA Veterans Engagement Award went to the Watco Military Onboarding and Hiring program for efforts to recruit and hire members of the U.S. military. In 2023, Watco coached over 1,150 separating service members and veterans at in-person hiring events, military installation town halls, and virtual events. Due largely to these efforts, Watco hired 103 veterans in 2023 and contributed to the ultimate success of employment for hundreds of transitioning military members across the nation.

Railway Age also presented awards at the event, and Watco’s Eastern Idaho Railroad (EIRR) received an Honorable Mention for Short Line Railroad of the Year. The EIRR completed a $9.4 million infrastructure project in 2023 benefiting the railroad and the customers and communities it serves, and in the past five years, the railroad has added nearly 11,000 carloads and several customers.

“I’m always incredibly proud of our team,” said Watco CEO Dan Smith. “Everyone honored has worked very hard, and I know they’re grateful to be recognized by the ASLRRA and Railway Age.”

New Arrivals

Arya Grace Brawley

Jeff and Tammy Brawley announce the birth of their daughter, Arya Grace Brawley, born on January 14, 2024. Arya weighed 8 pounds, 13 ounces, and was 19 inches long. She was welcomed home by her sisters Mya, 5, and Ella, 3.

Jeff is the safety manager of rail for Division 5 in Louisiana. He supports both the St. Charles and Plaquemine Dow facilities.

1 Year:

Team Member Anniversaries

Congratulations to the following team members celebrating April anniversaries:

Daniel Alvear, Jayden Anderson, Lushia Appadoo, Melissa Basave, Joseph Beckham, Anthony Bertin, Matthew Brenton, Emily Chellew, John Contor, Jayleen Crosby, Zoraya Cuellar, Colton Dampier, Gianna DaRonche, Mason Davison, Jayda Dukes, Seth Duncan, Frank Fernandez, Anthony Galindo, Sylvia Gardner, Alvaro Guel, Mario Hayes, Robert Hraha, Tanner Lane, Trinnity Le Blanc, Timothy Livengood, Anthony McDonald, Luke Miletello, Timothy Miller, John Miners, Cody Newland, Jorge Pinto Trevino, Ever Polanco, Brandon Potier, Lindsay Purcell, Ivan Ramirez, Ronald Ream, Cristian Romero, Xavier Schultz, Holley Shanahan, Jerry Sterling, Donald Suggs, Jackson Teale, Todd Trammell, Robert Tucker, Matthew Veatch, Lora Mae Vergara, Zlatko Vezenkovski, Danny Wado, Jamarcus Walker, Patrick Walker, Luke Watson, Logan Whitaker, Carl Whyte, Jaden Young

2 Years:

Hugo Aguilar, Marisa Aguirre, Chris Allen, Kyle Alling, Lindsay Ambeault, Christiaan Bezuidenhout, Kaleb Biffar, Erik Boi, Stanley Callahan, Erin Carter, David Copeland, Michael Cyhan, Eli Demmer, Rafael Diaz, Roger Diotte, Isaac Gallardo, Billy Golden, Kenneth Hammat, Steven Haygood, Kimberly Hersey, Matthew Hoobler, James Horner, Austin Lawless, John Lees, Caleb Levy, Wyatt Matschke, Thomas McCalpin, Jamison McCrary, Christopher Mckinney, Michael

McLaughlin, Shannon McMullan, Jason Meyer, Russell Mouton, Rodrigo Munoz, Brandon Overby, Bryan Paraspolo, Tyler Parkinson, Kandyce Peeples, Gloria Pineda, Courtney Randall, Kyle Reilly, Jerry Rhoads, Julill Rivera, Zoe Rix , Scott Roop, Michael Stern, James Taylor, Andrew Toni, Shaun Vela, George Villalon, Marcus Weenig, Tyler Wilcox

3 Years:

Victor Abilez, John Baker, Dylan Barbee, Leonardo Borghi, Loren Bradford, Floyd Brown, Jourden Casey, Tony Cesinger, Brandon Deane, Jeremy Dill, Jason Eather, Russell Gallagher, Christian Gokey, Kevin Hall, Coley Hatter, Wesley Logan, Justin Mahr, Darwin Marsh, Eduardo Martinez, Armando Montes, Javier Moreno, Orlando Nalls, Wilson Ponce, Thomas Robertson, Shelia Stice, Norman Taylor, John Ward, Gregory White, Brandon Willis, Morgan Wycoff

4 Years:

Jose Alonzo, William Brasher, David Dougherty, Luis Garza, Rafael Gutierrez, Marcos Hernandez, Nicholas Hyche, Anselmo Jurado Ulloa, John Lankford, Wayne Matthews, Jose Najera, Pedro Najera, Edison Najera Rodriguez, Francisco Pineda, Oscar Rubio, Brennan Sanderford, Steven Shields, Talon Teton, Jose Torres, Alfredo Vazquez, Keith Wilson

5 Years:

Klayton Beck, James Crisman, Nolan Crowe, Frank Galati, Zachary Grimes, Matthew

Heppler, Keston Higgins, Joseph Holley, Thomas Holmes, Cori Kallenbach, Manuel Loya, Tad Mayfield, Cody Mcgee, Will Myers, Torrance Nettles, Frank Pryor, Derrick Reeves, Xavier Rollins, Phillip Vasquez, Adam Vogt, Cody Vrana, Kevin Wright, Ami Yonts

6 Years:

Christina Berry, Taylor Brewer, Danielle Bushore, Esmeralda Carrizales, AJ Dellasega, Jonathan Dochniak, Wasyli Harasymuik, Gary Henry, Christopher Hunt, Gilbert Jasso, Joel Johnson, Brandon Landelius, Dominque Lewis, Alex Myers, Miguel Ornelas, Julie Ortiz, Jesus Pacheco, Travis Pinkerton, Ruben Ross, Roberto Salamanca, Jesus Sanchez, Misty Sweeney, Brent Taylor, Chad VanSickle

7 Years:

Jarret Borjas, Lance Cullen, Veronica Davis, Lacey Dawes, James Dunbar, Trevor Elliott, Brown Falconer, Cameron Garner, Michael Janda, Brent Lamaster, Stephen Lazzari, William Long, Jennifer Prasko, Thomas Reinhardt, Dennis Sepulvado, Jimmy Sharpe Jr, Sean Sipes

8 Years:

David Ault, Brian Baugher, David Dust, Matthew Gibson, Richard Morgan, Bunga Putri, Cody Reed, Christopher Salazar, Joseph White

9 Years:

Ryan Bernd, Kenneth Brown, Shane Cover, Juan Garza, Dan Hooper, Justin Johnson, Eric Kipp, Shannon Kondracki, Eric Larson, Anand Narine, Zachary Shelton,

Team Member Anniversaries

Dhanraj Singh, Tommy Smith, Renivick Wilkins, Fred Williams

10 Years:

Marcus Blumer, Alfie Hutchinson, Jaden Jacobs, Kersy Johnson, David McIntosh, Theodore Nicholson, Michael Porter, Chad Stacy, Aaron Tanner, Adam York

11 Years:

Michael Crosslin, Justin Denton, John Honaker, Devan Lynch, Jacob Nance, Kenneth Potts, Bill Rollins, Steven Schadler, Noey Sistos, Chase Upchurch, Nicholas Wayman

12 Years:

Scott Ayers, Aaron Greene, Stefan Holcomb, William King, James Lathum, Joseph Mays, Jeff Mitchell, Michael Mulnix, Andrew Thompson, Mark Wells, Tyrus White, Jeremy Williams, Tracy Wright

13 Years:

Mark Adams, Joshua Altis, Douglas Delehoy, Allen Hasty, Brian Hickerson, Shaun Hines, Christopher Kachmar, Donald Robert, Megan Wilson

14 Years:

Hayley Becker, Randall Bennett, Kevin Crespo, Anthony Hoyte, Jackie Ogden, Rachael Peterson, David Riley, Kevin Roth, Owen Schulz, Andrew Smith

15 Years:

Angela Bunker, Joseph Grupczynski, Mark Moorlag

16 Years:

Carl Elrod, Chris Haddow, Robert Hurda, Rhysia Manuel, Arnoldo Sandoval, Eric Smith

17 Years:

Terrance Foster, Rebekah Garner, Danny Rodriguez

18 Years:

Marshall Blakley, Erika Chavira, Shellee Currier, Timothy Dunn, Cody Gilliland, Christopher Preuc

19 Years:

John Bell, Jerad Brunskill, Travis Fellers, Brian Fox, Claudia Gedeon, Timothy Hurse, Richard Moser, Jesus Rodriguez, Jessica Seelinger, Tracie VanBecelaere, David Witzack

20 Years:

Jeffery Greenwood, Gina Lambert, Jason Nix

22 Years:

Lisa Butts, John Galloway, Kenneth Sauter

24 Years:

William Kyzer, Byron Marshall, Ernest Palmer

25 Years: Marvin Ellis

26 Years: James Crider, Stacey Hurda

27 Years: Sherry Denn

28 Years: Kenneth Barber

29 Years: Aaron Byle

34 Years: Dennis Phelps

35 Years: Dwight Browning

41 Years: James Strawn