November 1 – Agawa Canyon Railroad (ON, Canada) – 1 year
November 1 – Livonia Switching (LA) – 2 years
November 15 – Pecos Valley Southern Railroad (TX) – 12 years
November 15 – Phoenix Transload Terminal (AZ) – 7 years
November 17 – Cincinnati Marine Terminal (OH) – 1 year
November 24 – Crafton (TBT) (PA) – 4 years
November 25 – Geaux Geaux Railroad (LA) – 4 years
November 29 – Refugio Transload Terminal (TX) – 6 years
Watco team:
Looking back at 2024, I’m reminded of the challenges we faced, and how you persevered. You focused on what mattered, and it made a difference. Here are a few highlights of the year.
Grant awards – Team members from across Watco worked with state officials, departments of transportation, and many other project partners at the local, state, and federal levels to secure federal CRISI funding and matching contributions. I’m proud of the collaborative effort that resulted in more than $127 million awarded for future railroad track and bridge upgrades on three railroads, and for converting power from diesel to electric on eight switching locomotives. In addition to these awards, we received a $1 million grant from the Arkansas Waterways Commission for dock improvements at the Port of Pine Bluff.
Innovation – Logistics finalized the conversion of our MID-Ship Logistics data and freight movements over to our shared Transportation Management System platform. This provides a more consolidated technology platform to manage our comprehensive set of services for our customers. We continued to make strides in modernizing our operations. We’ve had two zero-emission, battery-operated switching locomotives at Greens Port for a little over a year with positive feedback from the crews. We also started testing the durability of composite railroad ties. We began installing this option on three railroads this year that have harsh weather and track that include all kinds of grade, curves, switches, etc.
Resilience – Our team consistently powers through, no matter the job or challenge. I’m proud of the incredible dedication and resilience you’ve shown while recovering from major weather events. Last spring, with their town at a standstill during an ice storm, a switching crew in Oregon walked to their worksite to load cars and to remove ice and downed trees from tracks while waiting for electricity to be restored. In June, heavy flooding damaged 55 miles of Ringneck & Western track. Then historic and catastrophic flooding crippled the Blue Ridge Southern in September. The extent of washout and debris is as much we’ve ever seen at Watco, and the resolve of team members is incredible.
Growth – In spite of a variety of challenges this year, we experienced growth domestically and internationally. All our business segments have contributed to this growth. We added the Verdigris Southern Railroad (VESO) at the Tulsa Port of Inola in Oklahoma, expanded our operations at the Cheyenne Logistics Hub in Wyoming, started rail-to-truck transloading for the new North Begen Transload Terminal in New Jersey, started carrying product for a large soybean processing plant in southeast Kansas, and began providing rail service via Watco Australia at the new Kenwick Intermodal Terminal in Western Australia.
Industry honors – Watco was recognized by multiple organizations in 2024 for our rail operations, business development, safety, leadership, and support of veterans. It’s good to see others recognizing your contributions to the industry.
You made 2024 a very good year. I am beyond grateful for your contributions and commitment to making sure Watco and our customers have success.
Enjoy the holidays with your family and friends.
Dan Smith Watco CEO
Vigilant Team Members Detect Potential Issue
Was that noise just the wind? Because they didn’t ignore a sound they heard in the darkness, two team members in Oklahoma prevented a possible derailment.
A Stillwater Central Railroad train was on a run from northeast Oklahoma to the central part of the state. Sometime after midnight at a stop just outside of Oklahoma City, Engineer Justin Hurt and Conductor/Engineer Sam Yim were positioning a group of sand cars. In the process, Yim was on the ground, and as Hurt ran the motor, Yim heard something that didn’t sound right.
The two followed the sound to discover a wheel bearing that was “just about to give up,” according to Trainmaster Randy Campbell. Wheel bearings allow rotating parts of a wheelset, like axles and
wheels, to move smoothly. A defective bearing on a railcar could cause the axle to shift and a wheel to slip off the rail.
“They stopped all movement and got hold of the Mechanical team,” said Campbell. “They said the end result could have been catastrophic if not identified by the crew and train movement stopped immediately.”
Chief Mechanical Officer Mark Carman received a call about 12:30 or 1 in the morning. He gave the crew the okay to “limp” the car about 3 miles to his location at the Oklahoma City depot for repair. “Thankfully, it looked like they caught it early,” said Carman. “If it went a whole lot longer— it could’ve lasted another hour or two — we would’ve had a possible derailment or issue on our hands.”
Watco’s Efforts Help Company Find Home for Newest Facility
Kingspan, a worldwide building materials company, is bringing its operations to Stillwater, Oklahoma, and Watco played a role in helping make it happen.
Working alongside other partners, Watco helped lobby for the passage of the Strategic Industrial Development Enhancement (SIDE) Act tax credit through the Oklahoma state legislature in 2022.
The SIDE Act was established to make improvements between railroads and industrial parks. Eligible projects must either be located in a rural area or adjacent to a short line railroad, switching operation, or terminal.
“Rail access was crucial in securing the Kingspan opportunity and the Watco partnership was instrumental in its success,” said Kari Moore, economic development director for the Stillwater Chamber of Chamber. “The Chamber is so grateful for the efforts of the Watco team and look forward to an ongoing partnership as we continue to enhance the manufacturing industry in Stillwater.”
Kingspan is the largest-to-date recipient of the SIDE Tax Credit. Their Stillwater facility, located at 4115 N. Perkins Rd., is expected to begin construction next year and will be served by Watco’s Stillwater Central Railroad.
Watco Director of Industrial Development Luke Bellamy said, “We’re thrilled to have Kingspan’s newest facility call Oklahoma home, and to be able to serve them. Thank you to everyone who helped make this project possible including the Oklahoma Department of Commerce, City of Stillwater, and the Stillwater Chamber of Commerce.”
Greens Port Supports Local Community
In addition to keeping operations humming at Greens Port in Houston, the Watco team has been busy supporting community events.
Many team members purchased tickets to and attended a fall festival hosted by Woodland Acres Elementary School. This annual school fundraiser helps cover expenses like supplies and field trips. In addition to Greens Port donating to the festival, two teammates contributed a combined $300 from their own funds.
A group of 15 team members also participated in a 5K race, where Welder Helper Pascual Guajardo placed sixth overall. Next up, the team will host a holiday toy drive benefiting elementary school students at Woodland Acres.
People Services Manager Zelma Phillips said, “I’m proud to work on a team that is committed to serving the local community. Together, we are making a positive impact.”
Rail Projects Earn Honors
Two Watco short lines were recently recognized by America’s Transportation Awards (ATA) for major projects they completed in 2023.
The ATAs are presented by the U.S. Chamber of Commerce, AAA, and the American Association of State Highway and Transportation Officials. All state’s departments of transportation are invited to nominate infrastructure projects in four categories. Watco’s Palouse River & Coulee City Railroad (PCC) and South Kansas & Oklahoma Railroad (SKOL) were both regional winners.
The SKOL and Kansas Department of Transportation earned the Midwest’s top honors for Operational Excellence, where they partnered to upgrade rail infrastructure in southeast Kansas. The $43 million investment included 34 miles of new rail, 150,000 new cross ties, 27 bridge improvements, 66 crossing upgrades, and more. The project supports new and existing customers by improving service, while making the community safer through better grade crossings along the railroad.
The PCC and Washington State Department of Transportation also earned the Operations Excellence award in the Western Region for their response following a wildfire. The fire destroyed a 200-foot bridge near Winona, Wash., which is a major artery for agriculture producers in the region. In just 33 days, they replaced the old wooden structure with a steel and concrete bridge, reopening the line and making it more resilient in case of future fires.
This year’s competition saw 106 entries from 39 states. After its regional win, the Winona Bridge was selected as a national “Top 12” project, making it eligible for the judge’s Grand Prize and People’s Choice Award.
“It’s an honor to be in the running,” said Jerry Waun, SKOL general manager. “We accomplished what we set out to do: improve and repair rail infrastructure in rural areas. These projects and their recognition by the ATA show what we can achieve when we collaborate with our state partners.”
Reminder: Use It or Lose It
Flexible Spending Account (FSA) holders, if you haven’t yet – now is the time to start spending these dollars on eligible expenses using your Watco Benefits card.
You have until the end of the year to use it or risk losing some of it. The Internal Revenue Service (IRS) allows those with medical, limited, and dependent care FSAs to carry over $640 to 2025.
To check your balance, sign in to go.watco.com and select the NueSynergy tile or open the Watco Benefitplace mobile app.
Medical FSA
So, what qualifies as an eligible medical expense? You can use it toward medical, dental, vision, and prescription costs for yourself and your dependents.
Here’s a list of some other eligible items available for purchase on the FSA Store:
• Over-the-counter medications
• Hearing aids
• Medical equipment
• Menstrual-care products
• First-aid kits
• Sunscreen
Limited FSA
Used in conjunction with a Health Savings Account, the limited FSA funds can be used toward dental and vision expenses.
Dependent
Care FSA
Qualified expenses include before- and after-school care, preschool, and in some cases babysitting and extracurricular activities for dependents under the age of 13.
Funds can also be used toward daycare and in-home care for adult dependents with disabilities.
Download the Watco Benefitplace App in Four Steps
1) Search for the Watco Benefitplace mobile app on the Apple App Store or Google Play.
2) Select Install and accept the terms of use.
3) When prompted, enter company ID WatcoCompanies.
4) Create an account or log in using your Watco single sign-on credentials.
Team Member Assistance Program Administrator Rebranding as Lucet
Starting January 1, Watco’s Team Member Assistance Program (TMAP) administrator, New Directions, will become known as Lucet.
The rebrand does not change the free, confidential services it offers to team members and their family members. Counseling as well as support with issues related to legal, financial, substance abuse, and more will still be offered through the TMAP.
Phone numbers for the TMAP remain the same; crisis support is available at any time by calling (800) 624-5544. The New Directions website will now redirect to eap.lucethealth.com. For your convenience, Lucet also offers a mobile app that’s available to download on the Apple App Store and Google Play.
SVP Retires After 26 Years
The MID-Ship Logistics Operations team recently celebrated the retirement of SVP of MID-Ship Logistics Howard Belgrod. To show their appreciation, the team hosted a dinner in his honor.
His family as well as team members from MID-Ship Logistics and other Watco locations were in attendance, where he received many mementos, including a photo book and an engraved brass ship bell. After being in the industry for 26 years, Belgrod looks forward to enjoying his retirement by traveling with his family.
MID-Ship Logistics President George O’Connor said, “Howard’s been such a leading and integral part of the team for so long. We’re really going to miss him.”
New Arrivals
Beckett Waid Gilbert
Tyler and Keely Gilbert announce the birth of their son, Beckett Waid Gilbert, born on October 1, 2024. Beckett weighed 8 pounds, 3 ounces and was 21 inches long. Tyler is a conductor/engineer for the Arkansas Southern Railroad.
Ava Lydia Foules
Anthony Foules and Angelica Jackson announce the birth of their daughter, Ava Lydia Foules, born on October 8, 2024. Ava weighed 7 pounds, 1.6 ounces and was 19 inches long. Anthony is an engineer/conductor for Memphis Switching in Memphis, Tennessee.
Raul Roman Orta
Raul and Madelyn Orta announce the birth of their son, Raul Roman Orta, born on October 13, 2024. Baby Raul weighed 6 pounds, 15 ounces and was 21 inches long. His dad is the general manager at Houston Texas Terminals in Houston, Texas.
Team Member Anniversaries
Congratulations to the following team members celebrating December anniversaries:
1 Year:
James Andress, Abraham Arellano, Chris Bingle, Travis Branscome, Stacey Campbell, William Canida, Isaiah Carmouche, Parker Church, Kiloe Cole, Shane Comp, Alvaro Cuevas, Theron Diosdado, Jeremy Evans, Colton Gunther, Steven Gwaltney, Markus Hager, Erik Hartley, Jason Hind, Juan Hollingsworth, David Ireland, Skyler Jensen, Branden Johnson, Clinton Johnson, Hillary Johnson, Aaron Keith, Trent Kollock, Brandon Kramer, Christopher Krupp, Allan Lawsan, Christopher Lodike, Matt Logan, Merle McClure, Jordan McCormack, Daniel McSwain, Omar Mendoza, Lexi Meyer, Kyle Michalek, Raymond Morley, Keeton Mumford, Matthew Nickoloff, Nigel Pamplin, Nolen Pamplin, Celina Pinon, Matthew Poindexter, Steven Roberts, Creston Rodney, Tristan Scott, Michael Self, Rodney Shaw, Jeffrey Sheeks, Adam Sipes, Dylan Wells
Daniel Rowlands, Jody Sayson, Tracey Schnebly, Windie Sharer, Aubrey Stafford, Nikhil Thirkateh, Nikhil Thirkateh, Joel Van Akker, Joel Van Akker, Joshua Ward, Joshua Ward, JaMarcus White, Symeon Whiteside, Austin Williams
3 Years:
Duane Akkerman, Mark Anderson, Paul Bentley, Chad Blanch, Rory Bradley, Nicolas Briffa, Clark Briggs, Noah Burns, David Burton, Steven Chester, Ashley Collett, Robert Cook, Michelle Cosner, Dale Cox, Martin Daniel, Noah Daniel, Joshua Doyle, Shane Doyle, Steven Eynstone, Alysha Ford, Mathew Fowler, Robert Frizell, Alexander Garcia, John Garner, Jed Garvey, Grant Goertzen, Manuel Goncalves, Derek Goodwin, Dyquan Green, Anton Grlic, Adam Halliwell, Daniel Herbert, Rushea Hodge, Graham Horobin, Matthew Kennedy, Ronald Kissell, Daniel Koloski, Christopher Lewis, Kaitlyn Lustig, Gregory Marsh, Paul Mawson, Picardo Mays, Anthony McCabe, Geoffrey McGlashan, Jason McPhee, Walter Miller, Shane Mills, Kyle Moore, Joseph Morse, Scott Murphy, Scott Neaves, Ellis Nicol, Jeremy Nicol, Kyle O’Brien, Brett Packham, Shane Partridge, Reshandia Phillips, Michael Poole, Alfred Renko, Brett Sakoff, Jennifer Schroeder, Kaleb Sedlock, Gary Shakeshaft, Grant Smith, Reid Spencer, Paul Stenhouse, Molly Taylor, Aleksandar Tololeski, Vasko Tololeski, Dragi Toskovski, Jamie
Toskovski, Carter Tracy, Paige Tuttle, Cameron Ward, Micheal Ward, Matthew Weaver, Joshua Windisch, Dennis Yates
4 Years:
Austin Allen, Drew Andreas, Joe Critchley, Nathan Grimm, James Hearn, Bradley Holt, Amber Litke, Jeremiah Llewellyn, Patrick Michalski, Levi Phelps, Joseph Plowman, Stephen Quintanilla, Aaron Rachal, Robert Richie, Anthony Rogers, Adam Schwarzkopf, Myles Shanks, Justin Studaker, Matthew Ware, Clare Wilkes
5 Years:
Timothy Allen, Jessica Austin, Jeffery Bell, Blake Blair, Clayton Bringer, Kraig Butcher, Matthew Davis, Ruben De Leon, Robin Fish, Robert Harvey, Michael Hawkins, Benjamin Jackson, Stephen Krupp, Jacob Linnebur, Rojelio Mancias, Kyle Morgan, Brandon Neal, Reandell Poindexter, Branden Shirley, Daniel Villamaria, William Vinciguerra
6 Years:
Steven Bernard, Anthony Caruthers, Drew Davied, Alison Denzel, Christopher Goodwin, Rodney Huffman, Robert Lopata, Dominic Nicosia, Robert Snyder, Tayler Wright
7 Years:
Steven Bochman, Justin Brewster, James Clinton, Casey Ediger, David Glover, Christopher Guillot, David Holt, Marcus Johnson, Perry
Team Member Anniversaries
Lambert, Michael Moore, Chase Norton, Amanda Olson, David Paspalofski, Robert Rae, Daniel Rowden, Alison Suarato, Wendy Trevizo, James Warma, Jennifer Welch, Jesse Winegarner
8 Years:
Joel Gibson, Michael Goss, James Langan, Kyle Loofboro, Kevin Thornton, John Turner, Michele Valdivia, Madison Williams
9 Years:
Jon Beach, Mark Coronado, John Peterson, Robert Rogers, Tyler Roshong
10 Years:
Lindsey Alexander, Rebecca Armentrout, David Baudoin, Jeffrey Brawley, Jared Duyck, Nathan Higgins, Lena Kebert, Gus Luquette, Jerrad Read, Latorrance Taylor, Leah Woods
11 Years:
Robert Harbour, Ferdinand Jansen Van Vuuren, Stephen Potts, Joshua Roberts, Tiffany Schmidt, Nancy Vargas
12 Years:
Bradley Beckner, Kyle Brown, Michelle Ivey, Jason Jewell, Brian King, Brenna Prestholt
13 Years:
Dexter Cahill, Ryan Krull, Christopher Walther, Steven Wisniewski
14 Years: Lisa Powell, Gregory Rieben
15 Years:
Timothy Eccles, George Freeman, Christopher Jackson, Kerry Luscombe, Charles Price, Eugene Stevens, Montez Tedford, Joel Wilmoth
16 Years: Daniel Giacalone
17 Years: Richard Buehre
18 Years: Transito Pedraza, Jonathan Tavernaro
19 Years: Cedric Bonner, Joshua Williams
20 Years:
Michael Hensley, Rafael Hernandez, Crezentia Van Becelaere
21 Years:
Johnnie Brown, Anthony Clark, Stephanie Mize, Ismael Mondragon
22 Years: John DeLeonyPena, Craig Richey
23 Years: Johnny Johnson, David Larch
25 Years: Charles Karamales
26 Years: Richard Ofiara
27 Years: Anthony Tillman
29 Years: Alex Contreras, Israel Garcia, Bryan Miller, Roger Schaalma
