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