The July Dispatch 2023

Culture Matters

What’s the secret to reaching 40 years in business? It’s our culture. We are One Watco. Check out our newest video featuring team members sharing their perspectives on why they love working here.

Congratulations to the following locations who celebrated June Safety Anniversaries:

June 2 – Pittsburg Repair and Maintenance Terminal (KS) – 7 years

June 5 – Deer Park Switching (TX) – 2 years

June 12 – Vicksburg Southern Railroad (MS) – 5 years

June 13 – Columbus Dedicated Terminal (MS) – 1 year

June 15 – Industry Marine Terminal (PA) – 3 years

June 16 – Lubbock & Western Railway (TX) – 2 years

June 22 – Dallas Mobile Repair (TX) – 3 years

June 22 – Memphis Channel Avenue Marine Terminal (TN) – 3 years

June 23 – Memphis Dock Street Marine Terminal (TN) – 3 years

June 23 – Kansas City Switching (MO) – 18 years

June 24 – Chicago Marine Terminal (IL) – 2 years

June 27 – Queens Dedicated Terminal (NY) – 8 years

June 28 – Guntersville Terminal (AL) – 14 years

Great People, Great Service Are Keys to Success

At this milestone anniversary, I want to say how humbling it is to be on the team at this outstanding company. Only about a third of U.S. companies make it to 10 years, and very few are in existence at 40 years. I’m very proud to be associated with our team members, customers, investors, and industry partners past and present who have brought Watco such success.

To get us here, great people have provided great service. Since the day when our first team switched railcars for our first customer in DeRidder, Louisiana, we’ve been responding to our customers’ needs and growing with them. We’ll continue to grow and change with our customers, but one thing that cannot change going forward is our culture.

Not long ago, I was interviewed about Watco and our award-winning culture, and I talked about the importance of being genuine and sincere in business. I also said that some things weren’t negotiable — like being safe and responsible, and treating people with respect. I said that if we conducted ourselves in this way, everything else would fall into place, and I meant it. The profitability will take care of itself.

We’ve been doing business this way for 40 years, and that’s exactly what we’ll continue to do. If we stick to our core values of taking care of customers and one another, we’ll thrive for another 40 years and beyond.

Dan Smith | Watco Chief Executive Officer

Bartlett Grain, Watco Have Grown in Tandem

Anyone reflecting on the numerous customers that are part of Watco’s four-decade business history would conclude there is no one “best” or “top” customer. But one company that can be regarded as an example of Watco’s customer-first approach, and as a customer that has grown together with Watco over the years, is Bartlett Grain.

Bartlett Grain is a provider of grain, milling, and feed products and services. Based in Kansas City, Missouri, the 116-year-old business has 23 grain and milling facilities across the U.S. and Mexico.

Watco’s association with Bartlett started in the late 1980s when Watco formed its first short line, the South East Kansas Railroad (SEKR). The line allowed Independent Mills (now Bartlett Milling), in Coffeyville, to consolidate rail shipments from three Class I railroads to one short line. The SEKR provided more timely switching and simplified the mill’s operations.

“This was a flour mill that brought in rail cars of wheat and made it into flour,” recalls Kirk Hawley, who at the time called on the mill in a sales capacity. “This flour was packaged in 90-pound bags and stacked in boxcars by hand and shipped to the Gulf, then loaded into ocean-going vessels, which were bound for all over the world.”

Watco immediately began building a relationship with Independent Mills, which was conveniently located next door to the Watco office in Coffeyville. The SEKR eventually became a part of today’s South Kansas & Oklahoma Railroad (SKOL), and the mill today remains a very active Watco customer on the SKOL, with the flour now going to domestic markets in bulk. The Watco-Bartlett Grain relationship would evolve over the years as the companies grew together.

“We had daily discussions with Bartlett operations to ensure service was meeting expectations,” says Hawley. “We would meet several times per year and make sure we were doing what Bartlett needed us to do.”

It’s impossible to confine a 33-year business relationship to a newsletter article, but a few examples illustrate the longstanding alliance:

• The 1990 formation of the SKOL gave the Coffeyville mill access to Class I railroads UP, BNSF, and KCS (now CPKC), allowing the mill to reach new markets more competitively and improving railcar supply.

• Depending on the type of flour being produced at a mill, different grades of wheat are needed. To add efficiencies to Bartlett milling operations in the early 1990s, Watco worked with Bartlett on a system of staging inbound wheat railcars and testing this wheat while it was in the cars. Soon, Watco would originate 95% of the inbound wheat railed into the Coffeyville mill.

• Watco worked with the state of Kansas on the 2001 purchase of what is now Watco’s Kansas & Oklahoma Railroad (KO). Moving grain to the Coffeyville mill on two Watco railroads now – not only the SKOL but also from eastern Colorado on the KO – provided efficiencies and value to both Bartlett and Watco.

• By 2003, Watco had begun supplying most of the covered hopper grain cars needed to move inbound wheat off the KO. Watco would also work with Bartlett to provide rail cars for inbound wheat and outbound flour when the Class I carriers didn’t have a sufficient supply of cars.

• In 2015, Bartlett built a grain shuttle loading facility east of Great Bend, Kansas, on the KO. Over time, the site became hampered by congestion. To help resolve the issue, the state of Kansas and Watco helped fund an expansion. Not only that, but Watco civil engineers designed the track buildout, and a Watco project manager oversaw construction, which began in October 2021. Five new storage tracks doubled capacity from 112 car spots to 224, and a new lead and bypass track were also installed to facilitate car movement. Construction was completed in April 2022.

“This is a one-of-a-kind relationship between shipper and service provider,” says Casey Harbour, sales director for the SKOL and KO. “We formed a great relationship that has worked for years and continues to work well today.”

Nowadays, Watco directly serves five Bartlett facilities in Kansas. Before long, Watco’s SKOL will serve Bartlett’s new soybean processing facility outside Cherryvale, Kansas. Construction is under way at the $375 million plant.

Joe Griffith, senior vice president at Bartlett Grain, says “There has been a long history of trust and reliance” between Bartlett and Watco. “We know the culture and people that stand behind the name and service Watco represents. Given the customer-first approach by Watco, we trust our investments on their network of infrastructure will be given the best opportunity to establish a foothold and create a sustainable position in the marketplace.”

Watco Firsts

Today, Watco spans two continents and four countries with more than 4,800 team members serving nearly 5,000 customers. Here’s a few first milestones important to Watco’s history:

1983

Watco begins switching operations on July 1, 1983, in DeRidder, Louisiana, for Boise Cascade

1987

The company purchases UP’s first short line spinoff. It eventually becomes part of Watco’s South Kansas & Oklahoma Railroad

1985

Coffeyville, Kansas, Mechanical Shop opens

2008

Watco’s Terminal & Ports business begins in 2008 after a customer requests transloading services

2010

The company goes international with a long-term contract to move grain in Australia with operations starting in 2012

2022

Newsweek names Watco to its list of America’s 100 Most Loved Workplaces®

2014

Watco’s most recent core service, Watco Logistics, is added to the mix

2023

Newsweek names Watco to its list of Top 100 Global Most Loved Workplaces®

Watco’s Past Shapes the Future

A lot has changed in 40 years, but Watco’s culture remains the same.

Founder Dick Webb established the company’s core values at Watco’s first switching location in DeRidder, Louisiana.

“The foundation principles weren’t documented,” SVP of Operations Keith LaCaze said. “But the Webb family taught us to value the customer, value each other, and safely improve every day. They ingrained it in us. They believed if we achieved that, then Watco would be successful. And he wasn’t wrong.”

LaCaze joined the Watco team in 1985. At the time, he was a recent high school graduate in need of a summer job. His dad worked for Watco’s first-ever customer, Boise Cascade. He helped arrange a time for his son to meet Dick Webb.

LaCaze said, “It was my first job interview. I didn’t know how it worked. I asked him for a job, and Dick immediately said ‘no.’ And then he quickly followed up with, ‘I’m just messing with you.’ I got the job. And that summer job turned into the rest of my life.”

He started as a railcar custodian. From there, LaCaze moved up the ranks to work as a switch operator, night shift foreman, location manager, and regional supervisor, among other roles. LaCaze said: “I grew up with a growing company. But my goals have remained consistent - work hard and treat my teammates and customers the way I would want to be treated.”

LaCaze remembers Dick Webb working alongside the rest of the team, switching railcars and making repairs. He was known for conducting business on a Big Chief writing pad and pocket calculator.

In 1998, Rick Webb took the reins as CEO. He kept his dad’s vision for the company alive while also expanding and diversifying Watco’s services. Among his many achievements, Rick Webb is credited with establishing Watco operations in Australia, as well as adding ports, terminals, and logistics to Watco’s service mix.

The company has continued to evolve over the years, with Dan Smith now as CEO since 2018. Today, 4,855 team members work throughout North America and Australia. Our services span 45 short lines, 29 switching sites, 75 terminals and ports, 10 repair and maintenance terminals, and 27 logistics branches.

LaCaze said, “Dan shares many of the same principles that the Webbs had. That’s what I love about him. He’s leading us into a new era, but he still has that same ‘I got your back’ mentality.”

Watco Logo History

Previous Watco Logos

Current Watco Logo

Five Recognized for Making a Difference

At Watco, there’s a lot to celebrate this month, including our newest Be the Difference award winners. Join us in congratulating Kevin Johnson, Chris Noyola, Chris Wise, Josh Golightley, and Noah Downs. For their efforts, each award recipient earns $250.

“Thank you to this quarter’s award winners for championing Watco’s values every day,” said CEO Dan Smith. “You own your responsibilities and make great things happen. Keep up the excellent work.”

Recipients: Kevin Johnson, Chris Noyola, and Chris Wise Freeport Industrial Rail (TX)

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

Watco team members Kevin Johnson, Chris Noyola, and Chris Wise recently saved the day for a customer by accommodating a last-minute request. Failure to meet the customer’s needs could have caused disruption in operations or a possible plant shutdown.

Assistant General Manager Daniel Salazar said, “They did what was best for the customer while keeping safety their No. 1 priority.” Read the team’s entire story here.

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.

On the South Kansas & Oklahoma Railroad, Railcar Mechanic Josh Golightley is considered a mentor and all-around handyman by his teammates. His supervisor, Tyler Burke, said: “His attitude rubs off on others.”

Recipient: Josh Golightley

South Kansas & Oklahoma Railroad (KS)

After noticing the Winfield depot needed repairs, Golightley stepped in to rebuild the patio, install a new door, and replace tile in the entryway. Keep reading more about our new 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, the community, or property.

Watco team member Noah Downs is credited for saving a child’s life earlier this summer. After noticing a child struggling to swim at a pool and then dropping below the surface, he dove into the water and started lifesaving measures.

Recipient: Noah Downs

Seadrift Industrial Rail (TX)

Downs knew just what to do as he recently became certified in CPR, First Aid, and AED. Learn more about our Safe Performance Award winner here

Watco Connects Customers to the World’s Supply Chain

In just four decades, Watco has transformed from a single railcar switching operation to a full-service transportation and logistics provider with locations throughout North America and Australia.

What’s the secret behind Watco’s tremendous growth? It’s simple: Take care of the customer. It’s a company value instilled by founder Dick Webb and one that remains true today.

For the Watco team, good customer service means always trying to find a way to say “yes.” Chief Operating Officer Nick Coomes said: “We go where our customers take us. Watco’s integrated services allow us to tackle any supply chain challenge, no matter how big or small.”

Today, Watco connects customers of all industries to the world’s supply chain through our diverse transportation network of short line railroads, terminals, ports, logistics hubs, and repair terminals.

Our integrated services allow our team to:

• Move any material using any mode of transportation

• Transload and store any material

• Implement customized supply chain solutions

Across all services, Watco has developed a reputation for getting product where it needs to go safely and fast. Whether it’s moving freight from a mill to a Class I railroad, providing strategic storage and warehousing options, developing an end-to-end transportation and logistics strategy, or any other service, customers trust our team to provide a seamless experience from start to finish.

“It’s exciting to be part of all the different ways Watco supports our customers today,” Coomes said. “I’m proud to belong to a team that is among the best in the industry. Watco’s reputation and continued hard work will only continue to open new doors of opportunity for us.”

Watco by the Numbers

short line railroads

45 29 contract switching operations

75

Railroad Carloads terminals & ports

Logistics

Repair and Maintenance logistics offices

27 10 repair terminals

Team Member Anniversaries

Congratulations to the following team members celebrating July anniversaries:

1 Year: Marilyn Ambeault, Christopher Anderson, Broc Angerer, Aaron

Baumgarden, Bradley Baysinger, Ian Bolden, Darrell Bradley, Jacob Brooks, Brandon Brown, Earnest Brown, Sylvia Budart, Jance Burris, Benjamin

Carpenter, Allan Childers, Jay

Coomes, Andrew Davis, Charles

Delgado, Major Dunbar, Trinity

Duos, Stephanie Garcia, Bianca

Gomez, Magally Gonzalez, Edwin Green, Dallin Hatter, Brandi Hawkins, Jovonna

Henderson, Kaylynne Hill, Jennifer Hillis, Lee Jimmerson, Michael Jones, Morgan Jones, Carlos Lazo, Daniel Longoria, Seth

Lorio, Vern Lucas, John Luis, Curtis

Mack, Shane Malchiodi, Victoria

Martinez, Corey Mcglory, Adam

Paliga, Juan Ramirez, Codi Ramzy, Joel Sciba, Tiffany Smith, Danny Strehlow, Charles Teeters, William

Thacker, Carlos Torres, Marco

Trejo-hernandez, Linwood

Williams, Aaron Wuestenhagen, Jesse Ybarra, Eric Zimmerman

2 Years: Andrew Alvarez, Allester

Bellville, Jacob Bennett, Isaiah

Casas, Dylan Coles, Orlando

Cordova Lema, William Crane, Dallas Decuir, David Delgado, Joseph Duscheck, Robert Ford, Earl Gresham, Gunnar Gronberg, Janice Haley, Jorge Hernandez, Levi Hester, Aaron Hughes, Jessica Johnson, Matthew Jones, Joseph Korzelius, Rodolfo Lopez, Luis Maldonado, Jose Marroquin, Johnathan Mathis, Phillip McGraw, Spencer McHugh, Justin Mcleod, Erik Mendoza, Timothy Merideth, Lisa Miller, Manuel

Montoya, Andrew Moran, Parker Neu, Alexandra North, Emiliano Perez, Seth Petit, Mason Ray, Kenneth Reed, Dusty Richardson, Latoukie Roberson, Michael Romo, Juan Romo Jr, Mitchell Rowe, Joseph Schlaff, Michael Schulz, James Stone, Jeanette Streets, Jakob Tobler, Alex Van Tuyl, Jason Washburn, Donovan Washington, Gus Zschech

3 Years: Ellison Champagne, Raymond Cotterill, Steven Cottom, Nicholas Goodin, Michael Harper II, Jason Norris, Jaime Olivares, Dustin Parrish, Khaley Peveto, Eric Reed, Christopher Riddle, Bradly Shobert, Howard Wilkerson

4 Years: Michael Aguirre, Zachary Baden, Andrew Bearden, Nicholas Brown, Aquil Carter, Caitlin Chiartano, Rasul Cunningham, Anthony DeLorenzo, Caden Fritz, Michael Garcia, Brandon Glover, Ramiro Gomez, Elie Gonzalez, Joshua Grimmer, Joseluis Guevara, Glen Jackson, Tyrone Jackson, Hamidreza Jadali, Tera Jameson, Troy Kutella, Trey Loya, Nickolas Manson, Richard Mazard, Steven Olsen, Dale Pape, Nicklas

Perry, Amie Proudfit, Kaytee Reed, Caleb Ussery, Jose Valentin, Evan Walker, Courtney Wolf, Richard Womble, Alexis Worthington

zo, Christopher Curtis, Sky Eisme, Ada Hill, Jonathan James, Daniel Kirton, Jeffery Lake, Christopher

Mayers, Lemar McConnell, Robert Murphy, Guadalupe Olvera, Bryan

Passon, Brian Pillsworth, Pamela Ridenour, Lawrence Rizzo, Ryan

Schwartz, Kellen See, Francisco

Silva, Jeffrey Thamer, Dean Torres, Felipe Vega-Cervantes

6 Years: Joshua Ahrens, Robert

Arney, Susan Brooks, Anna

Chatmon, Daniel Chauvin, Christopher Cline, Ricky Davis, Erick Diouf, Joseph Donaruma, Eddy Graham, Cody Harmon, Robert Hemingway, Debbie James, Brandon Kennedy, Aaron Klosterman, Xavier Lopez, Travis Lowder, Chris Moya, Timothy Pillsworth, Nathan Powell, Dagen Reel, Benjamin Saenz, Joshua Strickland, Patrick Swann, Shonta Thomas, Steven Thompson, Ernest Velasquez

7 Years: Pedro Barron, Wesley Branham, Steven Brant, Michele Briones, Matthew Budda, Brandon Burlew, Sean Cochran, Kolby DeBerry, John Escobar, Carl Foster, Aaron Freeland, Charles Hamilton, Jeffrey Infinger, Michael Kovarek, Charles Lee, Dustin McClanahan, Herbert McKinney, Keith Myles, Keith Pittman, Brien Runyon, Charles Snyder, Alan West, Sarah Wingard

5 Years: Nabeel Alawi, Joseph Bargas, Veronica Briseno, Rolvin Colon Morales, Anna Conners-Williams, Ever Cornejo, Len Crescen-

8 Years: Gregory Barnett, Cody Bell, Deena Christopher, Christopher Crumpton, Cameron Gonzales, Brad Hamlin, Gene Hernandez, Gerald Kattner,

Team Member Anniversaries

Noah Lucero, Edward McGuire, Heriberto Mendoza, Myra Shumate, Morgan Westhoff

9 Years:

Justin Ayala, Bret Burright, George Cabrera, James Carnes, Darl Farris, Raul Gonzalez, Jeffrey Linville, Brittany Mays, Carlton Moody, Thomas Nicholson, Brock Parham, Lynda Patterson, James Welch

10 Years: Brenda Antle, Christopher Bauder, Alan Beggs, John Gronberg, Edwardo Guerra, Nathan Holmes, Jacob Kleckner, Jacob Lipinski, David McCloud, Cody Rickman, Dane Rowe, Toni Scroggins, Bryan Waldon, David Wastak, Drew White

11 Years:

Dustin Bain, Jean Dor, Kenneth Flanders, Thomas Glover, Lucinda Grimes, Michael McAllister, Jeffrey Pacheco, Ronald Perkins, Charles Schilling, Charles Teeters, Joe Via

12 Years:

Joe Araujo, John Brown, Reginald Burks, Douglas Hicks, Jacob McCullough, Ronald Miller, Freddie Rainey, Melissa Rains, Jose Rodriguez, Stacy Swinford

13 Years:

Joseph Bristow, Brian Cosby, Joe Fells, Matthew Hutcheson, Crystal Lancaster, Andrew Mitchell, Bryce Roberts, Tammy Springer

14 Years: Alvin Bartholomew, Ryan Corder, Matthew Jackson, Gary Wagenseller

24 Years: Derek Damesworth, Robert Hasheider, Jerry Waun

15 Years: Garrett Bolyard, Carla Ewing, Ty Fuller, Timothy O’Shell, Judy Ozuna

16 Years: Tandi Colibert, Bobby McFadden, Michael Milligan, Travis Thorpe, Jeremiah Williams

17 Years: Kyle Jeschke, Matthew Lewis, Jennifer Muckala, Diana Peak, Kenneth Tober, Jeremy Tyler

18 Years: Antenogenes Barajas, Mitchell Hood, Cornelius Jones, Colby Jordan, Bridget Smith

19 Years: Laura Bolt, Bradley Bowden

20 Years: Beau Embrey, Royce Price, Daniel Salazar

21 Years: Douglas Tank

22 Years: Jeffrey Schroeder, Lois Ziesenis

25 Years: Scott Rudolph

26 Years: Joseph Bennett

28 Years: James Riley

29 Years: Harold Cornelius, Raymond Gray

31 Years: Joseph Leport

32 Years: Jeffrey Adams, Richard Mansfield

37 Years: David Bierman

38 Years: Stephen Thornton, Jeff VanBuren

Birth Announcements

Bennett James Barrows

John and Kelsea Barrows announce the birth of their son, Bennett James Barrows, born on May 3, 2023. Bennett weighed 6 pounds, 18 ounces, and was 18.5 inches long.

John is a car repair billing manager in the Pittsburg, Kansas, office.

Briggs Maverick Binkley

Mason Binkley and Jayden Tucker announce the birth of their son, Briggs Maverick Binkley, born on April 21, 2023. Briggs weighed 8 pounds, 4 ouncces, and was 21.5 inches long.

Mason is a crew leader at New Johnsonville Dedicated Terminal working out of New Johnsonville, Tennessee.

Birth Announcements

Hallie Marie Stringer

Matt and Kelly Stringer announce the birth of their daughter, Hallie Marie Stringer, born on April 11, 2023. Hallie weighed 6 pounds, 9 ounces, and was 19 inches long.

Kelly is a commercial support associate in the Pittsburg, Kansas, office.

Please share your birth announcements

To submit your new arrival send a photo and information to marketing@watco.com