The
Dispatch The newsletter for Watco
February 2022
Table of Contents Safety Anniversaries __________________________________________________________________________________ 3 New Short Lines Begin Operations _________________________________________________________________ 4-5 Winter Freeze ______________________________________________________________________________________ 6-7 Safety Training Center Expands, Gets New Name ____________________________________________________ 8 A Success Story from the Refugio Transload Terminal ________________________________________________ 9 Free COVID-19 Test Kits Provided Through Watco Health Plan _______________________________________ 10 Watco in the News __________________________________________________________________________________ 10 Watco Accepting Dependent Scholarship Application Forms _______________________________________ 11 Team Member Anniversaries _______________________________________________________________________ 12-13
Highlights
On the Cover
Who Stands Out?
“WSOR’s T005 train, led by WAMX 4223, rumbles through snow as it crossed Hwy 51 in Stoughton, Wisconsin. Photographer - Hank Koshollek
Nominate a teammate today for a Be the Difference Award. Find the nomination form at watco.com/btd 2 The Dispatch | February 2022
Safety Anniversaries
January 1 – Houston Liquids Terminal (TX) – 9 years January 1 – Bogalusa Bayou Railroad (BBAY) – 7 years January 1 – Medina Mobile Repair (TX) – 5 years January 1 – Plaster City Switching (CA) – 1 year January 2 – San Antonio Central Railroad (TX) – 10 years January 9 – Wallula Switching (WA) – 1 year January 16 – Dutchtown Southern Railroad (LA) – 1 year January 22 – Nitro Transload Terminal (WV) – 2 years January 23 – El Dorado Switching (AR) – 15 years January 29 – Omaha Transload Terminal (NE) – 4 years January 30 – Tioga Dedicated Terminal (ND) – 2 years
Safely Improve Every Day February 2022 | The Dispatch 3
New Short Lines Begin Operations
The first trains on Watco’s Fox Valley & Lake Superior Rail System (FOXY), the Grand Elk Railroad’s (GDLK) upper Michigan line, and the Agawa Canyon Railroad (ACR) made their maiden journeys without a hitch. In the days leading up to the launch of operations, teams were warned about below-zero temperatures that were predicted at startup. The temperatures ranged between 1° and 19° in Wisconsin as operations got under way for the FOXY, and it turned out to be a bit warmer for the ACR. Watco officially began operations on the FOXY at 12:01 a.m. January 29. About six hours later, a local switching crew was lining up cars in CN’s Wausau Yard for the journey outbound, with stops at several customer locations on the lines north of Wausau. “Things went very well that first day,” said Jason Danz, who’s no stranger to the cold or Wisconsin. He moved from Watco’s Kansas & Oklahoma Railroad (KO) to become general manager of the FOXY, but prior to his KO stint was at the Wisconsin & Southern Railroad (WSOR). “But most of all I want to thank everyone who assisted in making the startup run so smooth. We couldn’t have done it without all of the help and support of the Watco team.” The FOXY lines are one part of over 900 miles of track Watco purchased from CN in the U.S. and Canada. The Surface Transportation Board gave Watco regulatory approval in late December on the U.S. portion of the acquisition. The deal closed January 28. U.S. operations began January 29, and Canadian operations began February 1. The acquisition includes roughly 660 miles of active track serving more than 100 customers. Four Watco railroads are owner-operators of the acquired trackage: 4 The Dispatch | February 2022
The new FOXY – The FOXY operates over 9 segments of track totaling 261 active track miles in Wisconsin and upper Michigan. The interchange locations are in Wisconsin at Wausau, Spencer, Appleton, and Green Bay with the CN and at Tomahawk with the Tomahawk Railroad. Customers in the region ship or manufacture commodities that include paperboard, siding, lumber, wood pulp, wheat, corn, canola, and other products. Team members are at 54 and counting. The new ACR – This freight railroad, formerly the Algoma Central Railway, has about 25 customers including Algoma Steel. The ACR, stretching about 245 miles in Northern Ontario, anticipates about 36,000 carloads annually, with 80 percent of that being metals and forest products. The ACR will interchange at Sault Ste. Marie with the CN and the Huron Central Railway, at Oba with the CN, and at Franz with the CP. Part of the purchase includes a Sault Ste. Marie-based tour train that operates about during part of the summer and fall with scheduled excursions to the Agawa Canyon Wilderness Park and back to Sault Ste. Marie. ACR Director of Operations Wes Logan joined Watco in April from the transportation division of J.D. Irving’s New Brunswick and Maine operations. He’s been busy since then preparing his team of 27 for operations of the first Watco-owned railroad in Canada. “We worked closely with the province of Ontario as well as Transport Canada and CN to ensure we had all of our regulatory certificates to operate a railroad in Canada. We needed a Railway Operating Certificate from Transport Canada and a Shortline Operating License from the province of Ontario to begin operations.” In addition, they worked to hire and train team members local to the area, move equipment from the U.S. and line up assets in Canada such as locomotives, maintenance of way equipment, trucks, tools, and other supplies. The GDLK - Already operating in Michigan’s Lower Peninsula, has taken on about 95 track miles comprising the Newberry Subdivision in Michigan’s Upper Peninsula. More than 1,200 carloads of siding, paper, timber, and other products were hauled on the Newberry Sub in 2019. Five team members support the GDLK Newberry line, which interchanges with the CN at Trout Lake, Wisc. The WSOR began operations on 44 track miles on three newly added lines in southeastern Wisconsin. The WSOR has added the Eden Spur, interchanging with the CN at Fond Du Lac, and two lines that it connects to already: the Saukville and West Bend lines, interchanging with the CN at Ackerville. Steel products and lime made up more than half of the nearly 2,500 carloads transported in 2019. Doug Conway, vice president of sales over the new lines, said the Watco team is excited to add these lines and customers to our service offerings. “While we were waiting for regulatory approval, our team has been talking to customers, communities, economic development groups, and interested parties about our plans,” he said. “The most important message we communicated: Watco is here to make a difference. We have been very focused on Day 1 and ensuring the transition was smooth for both the customers and CN. “Moving forward, we know we have a tremendous opportunity to earn new business with our customers through our first mile/last mile service and our creative approach to developing new business and solving logistics and supply chain problems.” Editor’s Note: We’ve had a lot of interest in our FOXY and ACR hats! Those are available for order at watcogear.com/hats, then select style, color, and logo from the dropdown menus.
February 2022 | The Dispatch 5
Are you up for the challenge? The Watco safety team has selected he first seven Following Rules Every Day Ensures Zero Errors (FREEZE) safety award winners. Thanks to all of these team members for recognizing these hazards and taking preventative action before they became incidents. Team members who identified a hazard or concern and followed up to correct or highlight the issue are being rewarded with a $200 safety bonus. Name: Robert Cronch, operator Location: Chicago Heights Transload Terminal (IL) Safety Suggestion/Near Miss: Cronch noticed there wasn’t a drying agent hanging inside a sea container to prevent moisture contamination. He inspected the product and found moisture between the outer protective layer and the super sack. Solution: The customer was notified and they worked with the shipper to take action to avoid costly damage to the product and prevent future shipment contaminations. 6 The Dispatch | February 2022
Name: Adam Christman, conductor Location: Bayway Dedicated Terminal (NJ) Safety Suggestion/ Near Miss: While switching in-plant, Christman identified a vehicle fouling the tracks. Solution: The train was stopped to prevent a collision. The team then worked with the plant to put measures in place to prevent close-clearance and impact issues that could be hazardous to our crew, customers, and team members. Name: Milton Gray, railcar repair mechanic Location: Coffeyville Repair and Maintenance Terminal (KS) Safety Suggestion/Near Miss: During his pre-use inspection, Wright identified a hand grinder safety switch was not working correctly. Solution: The grinder was immediately taken out of service, and tagged. This prevented other team members from encountering the hazard.
In the month of December, our team submitted 184 near misses and safety suggestions.
Winter FREEZE runs through March 31! Name: Tristan Bellows, railcar repair mechanic Location: Omaha Repair and Maintenance Terminal (NE) Safety Suggestion/Near Miss: Bellows identified catwalk chains that were becoming unusable or rigid from paint overspray, creating a danger to the team. Solution: The chains have been replaced to prevent future hazards. Name: Andy Bennett, switch operator man Gabriel Martinez, conductor Location: Wallulla Switching Safety Suggestion/Near Miss: Bennett and Martinez were switching a customer and engaged a lockout to prevent a machine from operating while they were working on that track. They noticed the lockout wasn’t working correctly and
discovered a plant worker had flipped the lockout from railroad position to operating position, causing a hazard to the crew. Solution: This issue has been corrected by an administrative control, pending arrival of a new switch that will be lockable. Name: Zachary Champagne, track laborer Location: Decatur & Eastern Illinois Railroad (IL and IN) Safety Suggestion/Near Miss: Champagne identified a rail saw trigger that was not disengaging when released, creating a hazard. Solution: The saw was immediately removed from service and tagged, preventing anyone else from encountering the hazard. Senior Vice President of Environmental Health & Safety Travis Herod said, “We have a lot of great people, with great ideas, experience, and knowledge. Please continue to send in your near misses and safety suggestions. Let’s continue to learn, both from our mistakes, and our experience, to move through this Winter FREEZE period safely!” February 2022 | The Dispatch 7
Safety Training Center Expands, Gets New Name Safety is at the center of everything Watco does. That commitment, coupled with Watco’s growth, has led to the expansion and renaming of the company’s safety training center in Birmingham, Alabama. The former STAT Center has become the Safe Performance Center. A newly-built second building, which more than doubles the Center’s previous space, opened Jan. 3, 2022. The 11,000-square-foot building includes multiple classrooms, a conference room, and a large space designated for a future simulation lab. The project was driven by Watco’s growth, which created a need for more safety training space than the original building – built in 2017 – could handle alone. The capacity expansion boosts the number of team members who can receive on-site instruction from 40 per day to about 150 per day. The expanded Safe Performance Center will provide training for all Watco operations. It is expected to meet the company’s training needs for the next decade, ensuring team members receive consistent, high-quality training that adheres to Watco’s standards. Classes in the new building began the day the center opened. For the first time since the center has existed, the Safety team was able to hold three different classes at the same time, conductors, locomotive engineers, mechanical, car repair, and maintenance of way. The new building will house training for engineers, locomotive engineers, mechanical, car repair, and engineering. The conference room in the new building is wired for live, interactive, remote learning, permitting instructors to provide additional safety training and safety refreshers to team members and leaders around the country. In the future, this technology could be used to provide training to other members of the American Short Line and Regional Railroad Association. As part of the expansion, a confined-space simulator – a tanker car modified for training – was added to a piece of track outside the new building. Its addition allows hands-on confined-space rescue training for Watco team members. First responders also will be able to use the simulator for live exercises in a safe environment. The Safe Performance Center’s team of nine instructors demonstrate a level of professionalism and competency that is unmatched in the industry. These dedicated training professionals, along with the Safe Performance Center’s new name and recent expansion, underscore Watco’s commitment to team members’ safety and job growth opportunities. Over the next few months, stories in The Dispatch and on Watco Vision will introduce the Safe Performance Center team and give you more information about the breadth of training Watco provides. 8 The Dispatch | February 2022
A Success Story from the Refugio Transload Terminal Business is quickly growing at the Refugio Transload Terminal in Texas. Previously a sand receipt facility operated by Watco but owned by a third party, it’s now a Watco-owned facility. Following the sale nine short months ago, this site has since transformed into a full-service terminal offering transload, rail car storage, and more capabilities for customers across different industries. At the helm of operations for the new Texas terminal is Hilda Morin. Since joining the team in 2011, she’s served in many roles, from operator and supervisor to assistant terminal manager, and now terminal manager. Her supervisor, Watco Assistant Vice President of Operations Nathan Holmes, credits Morin for quickly equipping the team with the training needed to start new operations at the terminal. “This team went from just handling sand to many different types of product,” Holmes said. “The team was eager to learn throughout the entire transition, which is a reflection of Hilda’s leadership.” Morin’s work ethic and natural leadership ability are just two reasons why Morin’s former supervisor, Watco Vice President of Operations Jeff Ecret, hired her. He said, “From the very start she’s been totally dedicated. She cares deeply for her team.” When the terminal landed a cottonseed customer, it was up to Morin to get her team up to speed on handling the product. Moving this product from truck to rail requires using heavy equipment. To ensure her team had the training necessary to do this, she sent team members to another Watco facility to get certified in operating a front-end loader. Morin said, “I’m a cheerleader for the team. My team, past and present, are the best of me.” When this customer made their first on-site visit to the terminal, they were quickly impressed by the team’s efficiency and commitment to safety. They got to know Morin as she gave a tour of the facility and thoroughly explained operations, safety protocols, and Watco’s approach to business. According to Watco Vice President of Sales Maureen Solomon, the customer was ultimately pleased with the service they received and are considering a multi-year deal with the Refugio Transload Terminal. “One of the main reasons this customer is considering Watco for a multiyear deal is because of Hilda and her team,” Solomon said. “She impressed not only one of the nation’s largest cottonseed manufacturers, but all
Pictured L to R:
Gregory Woold ridge, engineer Juan Garza, op ; erator; Hilda M orin, terminal manager; Jam es Chinowith, en gineer; and Richard Wheel er, maintenance supervisor.
of us who work with her.” February 2022 | The Dispatch 9
Free COVID-19 Test Kits Provided Through Watco Health Plan Due to a recent mandate, team members covered under either Watco health plan are eligible to receive free COVID-19 over-the-counter (OTC) test kits through their pharmacy coverage without a prescription. There are two options to receive the free tests: 1. Visit an in-network pharmacy, pick up an OTC test, take it to the pharmacy counter and provide them your RxBenefits/CVS pharmacy card. The pharmacist will run the kit through your insurance with no out of pocket expense to you. 2. Purchase an OTC test kit and submit a claim through RxBenefits for reimbursement. Claims can be filed online at www.caremark.com or by requesting a paper claim form from benefits@watco.com. A copy of your receipt will be required. Kits must have been purchased on or after Jan. 15, 2022 to be eligible for reimbursement. For questions, please email benefits@watco.com.
Watco in the News Damian Cantrell, Assistant Vice President of Rail and Liquids, was named one of Railway “Fast Trackers”. Each year, Railway Age spotlights individuals who are under the age of 40 and are making positive impacts on the rail industry and their company. > Read more
Watco Teams Up with Pontikes Development and McNair Interests to form Port 10 Watco Rail Logistics. This joint venture was formed to build and operate a 400-car storage-in-transit (SIT) yard designed to alleviate railcar congestion and accelerate supply chain distribution. > Read more
10 The Dispatch | February 2022
Watco Accepting Dependent Scholarship Application Forms Watco’s annual scholarship program is now accepting applications. The scholarships are available to dependents of Watco team members. Applicants must be in good academic standing and plan to attend a post-secondary institution within one year following high school graduation. Each $500 scholarship is issued in two $250 disbursements the first two semesters of college, and will be credited to the recipients’ accounts at the financial aid office of the college of their choosing. The number of scholarships awarded will be determined by the number of applicants with a minimum of two awarded per year. Applications are available here. Please submit your application to watcogives@watco.com or mail it to: Watco Attn: Scholarship Committee 315 West 3rd Street Pittsburg, KS 66762 Applications need to be submitted no later than March 31, 2022. A committee will review all applications and the winner(s) will announced in the June issue of The Dispatch.
February 2022 | The Dispatch 11
Team Member Anniversaries Congratulations to the following team members celebrating February anniversaries:
1 Year: Juan Baeza, Demarkus
3 Years: Juan Bermudez, Daniel
Bailey, Jessica Bailey, Matthew
Biewer, Brent Blaha, Nigel
Bergeland, Troy Briggs, Jacob
Budhan, Gabriela Camacho,
Brown, Philip Champagne,
Logan Choate, Aaron Day,
Zachary Champagne, Albert
Robert DeBlanc, Dominic
Chapa, James Cullins, Damon
Diosdado, Tanner Ford, Jamie
Daugherty, Victor Dickson, Devin
Gatenby Lauck, Denisa Godfrey,
Gaedtke-Schwartz, Austin Grant,
Aaron Gossett, Jorge Gutierrez,
Blake Harvey, Joe Hinckley,
Alissa Hackel, Derrick Hagler, Luke
Hayden Inman, Milton Knight,
Harper, James Haynes, Anthony
Ollice Mason, Stephanie Miller,
Hoyte, Charles Jones, Maurice
Burke, Kevin Byrd, John Cuevas,
Mason Mollus, Zachary Morgan,
Joseph, Mayra Juarez, Anton
Daniel Czar, Juan DeLaCerda,
Baron Muller, Tyler Murphy,
Levdanskiy, Garry Major, Jose
Jarmain Drake, Kevin Johnson,
Christopher Newton, Christopher
Maldonado, Jose Martinez,
Daniel Lemon, Shane Morris,
Palmarez, Shawn Patterson, Chris
Andrew Mattair, Joshua Mitchell,
Caroline Spurrier, John Weber
Pullen, Jessica Reid, Angel Salazar,
Beau Mousty, Dylan Nixon, Prince
Randy Smith, Jonathan Stanley,
Nsanziyera, David Pena, Jose
7 Years: Derek Anderson, Bradley
Shaylee Stanley, Abagale Stroup,
Penaloza, Stephen Ricks, Dillon
Travis Taylor, Karen Tinkum,
Sauer, Derek Schuman, Mitchell
Nathan Trautman, Patrick
Shaffstall, Serena Shuck, Colton
Tygett, Kimberly Veyna, Bobbie
Singleton, Robert Slayer,
Jo Weiser, Kolby Woodson
Bruce Tackett, David Terven,
2 Years: Tristan Bellows, Donnie
Jamarius Valentine, Brent Walker,
Castro, Dereck Clabough, Loyd
Brian Witzke, Robert Woods
Clayton Jr, Raymond Damian,
4 Years: Shannon Colon,
Jesse Fitzgerald, Frank Ford,
Audley Elder, Rodney Foster, Eric
Luke Gard, Edgar Gaytan, Jacob
Franco-Velez, Tyler Gilbert, Derek
Goodrich, Cullen Hare, Michael
Good, Adam Gray, Ashley Hood,
Hoover, Chad Horne, Darla Jones,
Brian Kelley, Peyton King,
Jory Langevin, Joseph Lollar,
Matthew Machell, Nathanael
Austin Malone, Lee Ann Martin,
Riddle, Jacob Roll, Jeremy
Kenneth Murphy, Justin Park,
Schwarzhuber, David Torres,
Jose Perez, Matthew Rengel,
Mariano Uribe, Jennifer Vasquez,
Pascual Robles, Carlos Rocha,
Kristiana Walker, Stanley
Braedon Sheffer, Brooke Soukup,
Whitaker, Douglas Williams,
Karyn Lachay Thomas, Quentin
Dexter Wilson
Wallis, Dylan Wiebe, Linda Willis,
5 Years: David Blanchard,
Joshua Wilson
12 The Dispatch | February 2022
Timothy Broadway, Andrew
Ermler, Curtis Holbrook, Luis Leonard, Shawn Lindquist, Reynaldo Lobo Guardado, John McAndrew, Kenneth McKenzie, Gunnar Miesner, Rose Oljace, Michael Samples, Brent Shields, Sean Strong, Jennifer Thayn, Brady Trappe, Teressa Villarreal, Joseph Wendt, Dustin Wybrant
6 Years: Christopher Bollin, Tyler
Bridges, Steven Kimball, Christopher Klevenberg, Shawn MacWilliams, Eliel Morales, Jonathon Trusler, Sandra Williamson
8 Years: Patrick Flower, John Foster, Jesse Hatch, Sean Hayden, Chris King, Jeffrey Lien, Dee Mitchell, Cory Montoya, Odea Nowden, Zachary Overstreet, Tomas Sanchez
9 Years: Brent Aycock, Steven Coltrin, Steven Coomes, Seth Creason, Michael DeLaney, Jeremy Edwards, Travis Gathagan, Michael McMillan, Jeffrey Nugent, Michael O’Connell, Derek Prestholt, Michael Shoemaker, Misael Vazquez, Melissa Winebrenner
Team Member Anniversaries 10 Years: Michael Brinkerhoff,
14 Years: Michael Brown,
20 Years: Sara Hanson,
Erin Flocchini, Martin Mandujano,
Ben Coward, Brian Ezell, Ty
Monica Kellinr
Jacinto Mendez, Matthew
Furgason, Leovardo Mata,
Morrison, Sabrina Mounts,
David Riggs, Francisco Rivera,
21 Years: Serafin Contreras,
Drew Otto, Stephanie Rich,
Frederico Romero, Robert Smith,
Ysidoro Romero, April Rose,
Danny Thomas
Chad Shaffer, Timothy Sharitt,
15 Years: Robert Balzer, Jeffery
Matt Spade, Jeffery Summers, Chris Wright
11 Years: Kevin Dean, Charley Dohle, Josh Gwillim, Scott Reeves, Michael Schaffer, Joshua Smiley, Joseph Smith, Danny Spangler, William Watts, Willis Whitaker
12 Years: Freeman Harrison, Robert Johnson, Jose Reyes
13 Years: Veronica Banks, Lawrence Fix, Johnny Lima, Ronald Whitewater
Denton, Albert Glenn, AJ Mee, Derek Nyman
16 Years: Michael Lewis, Daniel Reeves, Joseph Reid, John Scheehle
17 Years: Douglas Fleming, Matthew Hinojosa, Gregory Lovelace, Howard Verner
18 Years: Brandon Otter, George Villa
19 Years: Gary Goodwin, Nathan Grice
Kevin Schoenhofer
22 Years: James Andrews, Steven Bringer, David Terry
23 Years: Thomas Shirey 25 Years: Robert Williams 26 Years: John Henderson, Michael Manion, Troy Tracy
27 Years: Michael Sebecic 28 Years: Rodney Hamilton 29 Years: Mark Hoskinson 34 Years Steven Caudle 35 Years: John Everson 36 Years: Kenneth Joyce
February 2022 | The Dispatch 13
