The December Dispatch 2022

Photo by David Higdon, Jr

Looking Back at a Successful 2022

As I look back on 2022, I’m grateful to our Watco team for all their accomplishments. Many come to mind, but I’ll highlight just a few examples.

First on my list is the expansion of our Safe Performance Center in Fairfield, Alabama. We invested $3 million this year in enhancements, including a new confined-space simulator and a new building with classrooms, a conference room, and a locomotive simulation lab. This investment supports our team members, our customers, and the communities we serve. By the time we close out 2022, instructors at the center will have seen almost 700 students for in-person training.

Next up is our investment in technology. In 2022, we continued our investment in new applications like TrackMaster, a real-time track inspection tool. Team members are using tablets to capture information during inspections and share it within our organization for reporting and resolution of any issues. Additionally, we made significant investments in the GIS mapping space to show Watco track and real estate assets. This helps our team understand maintenance responsibility and track/land availability. Watco also executed on a significant upgrade of the SAP platform, our accounting and finance system. This upgrade will

enhance our visibility into our performance with improved reporting and analytics.

Early in the year, Watco began operations on the Fox Valley & Lake Superior (FOXY) Rail System and Agawa Canyon Railroad. These operations are part of more than 900 miles of track Watco acquired from the CN in Wisconsin, Michigan, and Ontario, Canada – one of Watco’s largest transactions ever. We’re serving more than 100 customers in the region.

The Watco team deserves a huge thanks for everything we achieved this past year. Our team members work incredibly hard and are the ones who create and maintain the tremendous culture we enjoy. This culture is part of the reason we were recognized by Newsweek as one of America’s Top 100 Most Loved Workplaces® for 2022.

We have a lot to be grateful for, and as we kick-off our 40th year in operation, and continue to serve more than 4,000 customers, I look forward to the success I know is yet to come.

Merry Christmas to you and your families.

Dan Smith, CEO

Are You Up for the Challenge?

Winter FREEZE starts NOW through March 31, 2023!

Watco team members who want to earn an extra post-holiday bonus on their paycheck should consider participating in Watco’s Winter FREEZE safety program, effective December 1. Team members whose near-miss incidents and safety suggestions are selected will receive a cool $200. And one lucky team member will receive a grand prize after March 31, when Winter FREEZE concludes.

About Winter FREEZE FREEZE stands for Following Rules Every Day Ensures Zero Errors. Watco designed the program to create safer work environments during the winter months. This is accomplished by having team members submit near misses and safety suggestions.

Travis Herod, SVP of environmental health and safety, along with others from the safety team will select the best near misses or safety submissions. Herod said, “I’m hoping that we can get a lot of submissions this year throughout the entire length of the program. Last year we started out strong and then it slowed down at the end. I would like to see that change this year.”

Herod hopes the program helps team members form new safety habits, like looking out for potential hazards. Team members are encouraged to keep improving our safety measures to keep themselves and their fellow teammates safe.

“We want to hear from you,” said Herod. “I realize we never want to admit our failures, it makes us human. Our team members know what we are missing and know their practices better than we ever could. Safety is everyone’s responsibility.”

How it works

Between now and March 31, when team members spot a near-miss incident or have a safety idea, whether it is winter-related or not – they should tell their local managers about it. The managers then will enter the suggestions into Watco’s VelocityEHS system that tracks safety data. Each month, Watco’s safety leadership team will compile all the entries and select the ones with the most potential to prevent an incident or solve a safety issue. The winners will then receive an additional $200 bonus, after taxes, on their paycheck. After March 31, all winning submissions will be entered into a drawing to win a grand prize, which will be revealed at a later date.

Where to get more info

More information about Watco’s Winter FREEZE safety program will be posted regularly on Watco Vision and in weekly safety emails. Those with questions about the program can ask their local leadership, division safety manager, or anyone on the safety team.

Watco Delivers Christmas Cheer

‘Tis the season to spread Christmas cheer. Aside from singing loud for all to hear, there are other ways to get into the holiday spirit, like decking the halls.

And believe it or not, many popular Christmas decorations are brought to you by Santa’s helpers at Watco. Whether by train, barge, or truck, our team members work together to ensure families nationwide have everything they need to prepare for a happy holiday.

First things first, the star of the season: the tree. Two of Watco’s short line railroads play a hand in delivering commodities that go into sprucing up two types of reusable Christmas trees. The South Kansas & Oklahoma Railroad moves polyvinyl chloride (PVC) plastic while the Wisconsin & Southern Railroad hauls polyethylene. And while there are many uses for these materials, both can ultimately go into making artificial tree needles.

Lights are a necessity when it comes to trimming the Christmas tree. Thankfully, the Watco Logistics team in Clearfield, Utah, is here to help ensure your tree shines bright. One of the many commodities this team coordinates the transportation of is copper wire, which can be found in the strands of white and multicolored lights.

Before making homemade ornaments with your family this holiday season, you’ll first need resin. Carloads of this keepsake’s key ingredient are handled by the elves at Watco’s Euclid Transload Terminal (TBT) in Ohio.

And don’t forget the tree topper. A star, angel, or bow is commonly placed on the top of the tree each holiday season. If it features glitter, chances are many Watco teams had a role in helping move the materials like aluminum that make up this product.

Finally, the tree skirt. Classic velvet, quilted fabric, and fleece tree skirts all share a similarity — they’re made from cotton. The team at the Decatur River Port in Alabama does their part to help farmers grow this crop. They transload the seed that eventually becomes planted, picked, and transformed for multiple uses.

Thank you to our Watco team members for playing a part in making homes bright this holiday season. Merry Christmas!

Rick Webb Receives Award for Industry Achievements

Watco’s Executive Chairman Rick Webb was presented with the 2022 Railroad Innovator Award last month at the annual RailTrends® conference in New York. Progressive Railroading and RailTrends announced in April that Webb would receive the honor.

The award recognizes outstanding achievement in the rail industry, where Webb has spent a nearly 40-year career. Besides receiving his honor at the RailTrends conference, Webb was featured in the November issue of Progressive Railroading magazine

“I’m humbled by the recognition,” said Webb. “It really goes not to me but to all the people of Watco over the years.”

Webb, whose late father Dick Webb founded Watco in 1983, joined his father in 1984 and began learning the business by cleaning box cars. He went on to hold management and other leadership positions in operations, purchasing, marketing, accounting, and financial management during the first half of his career. His strategic vision and knack for taking smart risks propelled him to chief executive officer, a role he assumed in 1998. For the next 20 years, Rick Webb would continue to drive business development, advancing Watco, its customers, and the industry.

In 2018, he became Watco’s executive chairman, handing the role of CEO to Dan Smith. “I’ve had the pleasure of working alongside Rick Webb since 2009,” Smith said. “Throughout my career, in both transportation and baseball, I have never known a more remarkable leader or coach. Rick’s humility, integrity, and ability to make those around him better has inspired thousands of people to work each day to find a better way to serve others.”

Chuck Baker, president of the American Short Line and Regional Railroad Association (ASLRRA), has known Webb for years and has seen his influence firsthand. “Without Rick Webb, I’m not sure that the modern short line industry looks like it does now,” said Baker. “He and the family-owned company he has built exemplify everything we hold dear about short lines: the hustle, the entrepreneurial culture, the ‘whatever it takes to serve your customer’ attitude. He’s humble, so he’ll hate all of this, but the culture he has developed has not only permeated through Watco and its alumni but also throughout the whole industry. Short-liners all over the country talk about earning the right to serve your customers, about adapting and growing with customers, about your word being your bond, about being long-term stewards of critical infrastructure playing a crucial role in the country’s economy, and I think an awful lot of that comes from Rick.”

Webb has distinguished himself throughout the freight transportation industry. He has served in leadership roles for organizations such as the Association of American Railroads, the National Industrial Transportation League, and the Surface Transportation Board’s Railroad-Shipper Transportation Advisory Council.

A Solution with Real Flare: Watco Helps Customer Reinvent Supply Chain

Fireworks. They bring to mind celebrations and gatherings. And at Watco, we’re celebrating.

For the first time in Watco history, our team now moves fireworks from China to the United States for one of the largest fireworks distributors.

Last year, this U.S.-based customer approached Watco after supply chain disruptions led them to reconsider their freight transportation strategy. Their product was previously managed by freight forwarders and transported overseas in container vessels destined for California ports. But concerns with severe supply chain disruptions had them seeking alternative solutions from Watco and MID-Ship Logistics.

“They knew they had to dramatically adjust to meet consumer demand in 2022,” said President of MID-Ship Logistics George O’Connor. “They were seeking a game-changing solution that would allow them to control their upstream supply chain to ensure product availability.

The customer’s resolution to create their own supply chain was a tall order, especially considering China’s origin restrictions and control placed on the traditional model of moving fireworks out of the country.

It was up to Watco and MID-Ship Logistics to create the logistics path to ensure the product seamlessly flowed several thousand miles from the point of origin to destination and every point in between, utilizing a non-traditional, go-to-market strategy.

This included setting up the ocean charter via multipurpose vessels not typically used for containers, stevedoring, and port coordination, as well as rail, truck, and temporary storage solutions to support product movement. During peak firework shipping season, which runs February through June, Watco coordinated 14 ocean vessels and over 3,000 containers to ensure product was on the shelves ahead of Fourth of July celebrations.

With Watco’s assistance, two Class I partners established new rail service lanes that provide direct routes to previously-unserved points in the customer’s distribution network.

“Reinventing and executing a new supply chain for this customer was a collective effort, our customer was super invested in our partnership and the model for the long haul,” said SVP of Sales for Logistics Lynda Patterson. “Thanks to Watco’s army of team members for making this initiative a success.”

Pictured from left to right are

Watco University Develops Railcar Inspection and Repair Course

The Watco University team is always looking for ways to improve and tailor training to benefit the specific needs of our Watco teams. As part of these efforts, a group of team members from Division A attended a trial-training led by Director of Railcar Repair Joe Berry. The railcar inspection and repair-focused training was hosted by Watco’s newest short line, the Texas Coastal Bend Railroad (TCBR), the week of October 24 in Corpus Christi, Texas.

This was the second iteration of the training for the same group. Our team took feedback from the first session and presented a modified version to the same team members to ensure the training they’re receiving is as effective as possible.

“We found the training to be helpful, partly because the instructor was flexible enough to work around our schedule and tailor the training to our needs. We spent half a day in the classroom Monday through Wednesday. The rest of the time, including all day Thursday and Friday, in the field, practicing what we learned in class,” said TCBR General Manager Darl Farris. “While the course generally applies to railcar inspections and repair, there is a lot of value for anyone who wants to broaden their practical understanding of what can go wrong on a railcar and what it takes to repair it. We feel fortunate to have been included in this training and are really impressed with the level of experience the instructor shared with us.”

instructor Joseph Berry, Watco director of corporate railcar David Dominguez and Jeremy Evans of the TCBR; Richard Leija of Greens Port; Zach Charston of the TCBR; and Troy Vacala of Greens Port.

Spend Your FSA Money Now or Risk Losing It

Many team members choose to set aside money in a Flexible Spending Account (FSA) each year when enrolling for benefits. FSAs not only help set aside money to pay for qualified expenses, but the funds aren’t taxed.

Under Internal Revenue Service (IRS) rules, there are limits to what you can set aside, and you’ll want to know your balance going into 2023 to ensure you avoid losing some or all of it.

Check your balance by clicking on the NueSynergy icon using single sign-on at go.watco.com, or use the NueSynergy Mobile app. If you don’t yet have the app, see the accompanying article for how to download it. For assistance, contact Benefits at (844) 859-2826.

Medical FSA: Going into 2023, team members can roll over up to $570. Funds in your account that exceed $570 must be spent on 2022 eligible expenses, or you lose that money.

If you have a balance to use, you could buy healthcare staples like pain relievers or adhesive bandages. A place to shop or get ideas is The FSA Store.

For any services rendered on or before December 31, 2022, you have until March 31, 2023, to file a claim for reimbursement.

Dependent Care FSA: Dependent Care FSAs help pay for care such as preschool, summer day camp, or care for disabled adult dependents. You can roll over $570 into 2023, and you can file claims on 2022 dependent care expenses until March 31, 2023.

Unused Money: With either type of FSA, remaining funds exceeding the $570 rollover limit are forfeited.

Setting Up Your NueSynergy Mobile App

Download the NueSynergy Mobile app from the Apple App Store or GooglePlay. Select Install and accept app permissions.

Select Register at the bottom of the sign-in screen. Create a new username and password. This will be different from your Watco participant portal username and password.

Complete the registration steps on the screen. (If needed, your Employer ID is NUEWATCO. Your Employee ID is your Watco Employee ID.) Once registered, you will then have access to your account on NueSynergy Mobile.

Get Screened

Cancer Screen Week: Dec. 5-9, 2022

Scheduling your regular cancer screenings is one of the easiest ways to take control of your health.

According to the American Cancer Society, regular screening can help find certain cancers early, when they are most likely to be treated successfully.1

Below are recommendations for people at average risk for certain cancers. Talk to a doctor about which tests you might need and the screening schedule that’s right for you.

Age 25–39 Screening recommendations

• Cervical cancer screening – age 25

Age 40–49 Screening recommendations

• Breast cancer screening – age 40 optional, age 45 recommended

• Cervical cancer screening

• Colorectal cancer screening –everyone beginning at age 45

• Prostate cancer screening –African Americans at age 45

Age 50+ Screening recommendations

• Breast cancer screening

• Cervical cancer screening

• Colorectal cancer screening

• Lung cancer screening –people who currently smoke or formerly smoked

1 American Cancer Society. Cancer Facts & Figures 2022. Accessed March 1, 2022.

Team Member Anniversaries

1 Year:

Duane Akkerman, Saleem Berry, David Bond, Rory Bradley, Kenneth Branstetter, Noah Burns, Danielle Cliffman, Michelle Cosner, Scott Daubel, Shaina Doherty, Alysha Ford, Robert Frizell, Michael Fulkerson, Tyson Gifford, Grant Goertzen, Derek Goodwin, Dyquan Green, Rushea Hodge, James Hrabovsky, Claye Loftsgard, Kaitlyn Lustig, Luis Magallon, Trinity Main, Shain Massey, Picardo Mays, Dylan Miller, Walter Miller, Logan Minor, Bhuwani Mishra, Kyle Moore, Jason Olson, Chad Osborne, Marcos Partin, Richard Phebus, Reshandia Phillips, Michael Poole, Cameron Presley, Jennifer Schroeder, Kaleb Sedlock, Molly Taylor, Carter Tracy, Paige Tuttle, Wilson Valenzuela, Ryan Willard, Paul Wireman

2 Years:

Austin Allen, Drew Andreas, John Banos, Demarcos Barnes, Joe Critchley, Nathan Grimm, James Hearn, Bradley Holt, Amber Litke, Jeremiah Llewellyn, Matthew Matlock, Patrick Michalski, Tayjione Nathan, Levi Phelps, Joseph Plowman, Stephen Quintanilla, Aaron Rachal, Robert Richie, Anthony Rogers, Adam Schwarzkopf, Seth Stamper, Justin Studaker, Braxton Vega, Jared Wagner, Matthew Ware

3 Years:

Chelsey Adkins, Timothy Allen, Jessica Austin, Jeffery Bell, Blake Blair, Clayton Bringer, Kenissa Brown, Kraig Butcher, Matthew Davis, Ruben De Leon, Kristin DeBlas, Robin Fish, Robert

Harvey, Michael Hawkins, Jerome Hunter, Benjamin Jackson, Stephen Krupp, Jacob Linnebur, Rojelio Mancias, Hassan Marshall, Kyle Morgan, Brandon Neal, Don Nettles, Jared Northrup, Branden Shirley, Lauren Speer, Jesse Thomas, Daniel Villamaria, William Vinciguerra, Patrick Woods

4 Years: Garrett Belgarde, Steven Bernard, Anthony Caruthers, Kyle Cornelius, Drew Davied, Alison Denzel, Zachary Eriksen, Chris Goodwin, Rodney Huffman, Tramare Lanfair, Joseph Lehnert, Robert Lopata, Marcus Mask, Dominic Nicosia, Brandon Smith, Robert Snyder, Tayler Wright

5 Years: Steven Bochman, Justin Brewster, James Clinton, Michael Conner, Christopher Dunsworth, Casey Ediger, David Glover, Christopher Guillot, David Holt, Marcus Johnson, Perry Lambert, Michael Moore, Chase Norton, Amanda Olson, David Paspalofski, Jeffrey Power, Daniel Rowden, Alison Suarato, Wendy Trevizo, James Warma, Jennifer Welch, Jesse Winegarner

6 Years: Jason Garza, Joel Gibson, Michael Goss, James Langan, Kyle Loofboro, Luis Salmon, Lorri Smith, Kevin Thornton, John Turner, Michele Valdivia, Madison Williams

7 Years: Jon Beach, Mark Coronado, James Fountain, John Peterson, Robert Rogers, Tyler Roshong

8 Years: Lindsey Alexander, Rebecca Armentrout, David Baudoin, Jeffrey Brawley, Jared Duyck, Scott Hallman, Nathan Higgins, Lena Kebert, Gus Luquette, Shaun Maurin, Jerrad Read, Douglas Smith, Latorrance Taylor, Leah Woods

9 Years: Robert Harbour, Kyle Henson, Stephen Potts, Joshua Roberts, Tiffany Schmidt, Nancy Vargas

10 Years: Bradley Beckner, Kyle Brown, Michelle Ivey, Jason Jewell, Brian King, Brenna Prestholt, Victor Smith

11 Years: Dexter Cahill, Terry Dugar, Ryan Krull, Christopher Walther, Steven Wisniewski

12 Years: Lisa Powell

13 Years: Timothy Eccles, George Free man, Cheryl Galler, Christopher Jackson, Charles Price, Eugene Stevens, Montez Tedford, Melissa Tuman, Joel Wilmoth

14 Years: Daniel Giacalone

15 Years: Richard Buehre, Penny Wood

16 Years: Kevin Beam, Richard Hensley, Transito Pedraza, Jonathan Tavernaro

Congratulations to the following team members celebrating December anniversaries:

Team Member Anniversaries

17 Years: Cedric Bonner, Joe Mercer, Obed Valdez, Joshua Williams

18 Years: Michael Hensley, Rafael Hernandez, Crezentia Van Becelaere

19 Years: Johnnie Brown, Anthony Clark, Lonnie Johnson, Stephanie Mize, Ismael Mondragon

20 Years: John DeLeonyPena, Craig Richey

21 Years: Johnny Johnson, David Larch

23 Years: Charles Karamales

24 Years: Richard Ofiara

25 Years: Anthony Tillman

27 Years: Alex Contreras, Israel Garcia, Bryan Miller, Roger Schaalma

28 Years: Michael Carr

29 Years: Sherry Miser

32 Years: Claude McGuff 36 Years: Ronald Faulkner 44 Years: Roderick Bodfield

Birth Announcements

Ewomazino (Zino) Bradshaw

Haley and Josiah Obonyano announce the birth of their son Ewomazino (Zino) Bradshaw, born on August 3, 2022. Zino weighed 8 pounds, 4 ounces, and was 21 ¾ inches long.

Haley is the assistant manager of revenue accounting for Houston area terminals and ports, working out of the Greens Port office.

Adylaide Rose Graves

Nova and Samuel Graves announce the birth of their daughter, Adylaide Rose Graves, born September 20, 2022. Adylaide weighed 9 pounds, 13 ounces, and was 21 1/2 inches long. She was welcomed home by her brother, Ayden.

Nova is a rail logistics assistant at the Springdale, Arkansas, office.

Lucas Wayne Mikkelsen

Erika and Joe Mikkelsen announce the birth of their son, Lucas Wayne Mikkelsen, born October 23, 2022. Lucas weighed 7 pounds, 15 ounces, and was 21 inches long.

Lucas is the grandson of Susan Mikkelsen. Susan is the senior graphic designer on the marketing team at the Overland Park, Kansas, office.

Kolbe Timothy Peot

Brad and Caitlyn Peot announce the birth of their son, Kolbe Timothy Peot, born October 23, 2022. Kolbe weighed 8 pounds and was 21 inches long.

Brad is the sales director for the Agawa Canyon Railroad, the Fox Valley & Lake Superior Rail System, and the Grand Elk Railroad Newberry line. He works out of the Madison, Wisconsin, office.

Solan Bruce Tackett

Bruce and Amanada Tackett announce the birth of their son, Solan Bruce Tackett, born October 15, 2022. Solan weighed 8 pounds, 5 ounces, and was 20 1/2 inches long.

Bruce is a level 3 operator at the Ghent Marine Terminal in Ghent, Kentucky.