The Dispatch May 2022

What’s not to love?

Best Practice Institute has made it official; we’re a Most Loved Workplace®.

Our workplace is what team members have made it! Best Practice Institute liked what they saw in your team member survey responses and then certified Watco. That qualifies Watco for consideration in the annual Top 100 List of America’s Most Loved Workplaces that will be published in the October issue of Newsweek.

Congrats, Watco team!

Safety Anniversaries

April 1 – Lake Charles Switching (LA) – 12 years

April 1 – Mill Creek Mobile Repair (OK) – 5 years

April 4 – Cincinnati Switching (OH) – 4 years

April 5 – Mississippi Southern Railroad (MS) – 17 years

April 6 – Kaw River Railroad (KS, MO) – 2 years

April 7 – Prattville Switching (AL) – 6 years

April 20 – Cudahy Repair and Maintenance Terminal (WI) – 2 years

April 27 – Houston TPC Switching (TX) – 15 years

Watco U Hits the Road

In-person training is critical for the Watco team’s leadership development. The Watco University team is back on the road bringing these courses to our team members. In April, they held a Foundations of Leadership training in Austin, Texas, for our Logistics and Austin Western Railroad (AWRR) teams.

Left to right: (Back row) Eric Caprilla, AWRR trainmaster; Missy (Melissa) Amaya, San Antonio, Texas, branch manager; Travis Gage, Springdale, Arkansas, branch manager; Stephanie Mize, Jonesboro, Arkansas, branch manager; Richard Scott, Springdale branch manager; and Fran De Leon, San Antonio account manager. (Front row) Delmer Armentrout, AWRR roadmaster and Alina Robles, Clearfield, Utah, logistics coordinator.

Team Provides Instruction on Building, Maintaining Track

The Watco Safe Performance Center (SPC) in Birmingham, Alabama, provides safety instruction for locomotive engineers and conductors, team members working in maintenance of way (MOW), and those working in railcar repair, as well as other safety and leadership training for all of Watco. This is the final of three articles introducing the Watco SPC trainers. This time, it’s the four who are in the group called engineering and safety training.

Engineering. For SPC trainers, it refers to railroad track. Not to be confused with locomotive engineers or the engineers working in Design and Development, the SPC engineering and safety trainers instruct track laborers, inspectors, and other team members who safely build - or engineer - track and maintain it for Watco and some of our customers.

Mike Milligan, senior manager of engineering safety & training, heads up a group of three managers. He and Josh Lathum teach new team members the classes that make up a two-week engineering ground school, anchored by Roadway Worker Protection training. In addition, they cover key sections of the General Code of Operating Rules, bridge worker safety, the fundamentals of basic track maintenance, railroad handbooks, and other applicable material.

Milligan also oversees the computer-based training for the 300 to 500 MOW contractors who work on Watco properties annually. In addition, he travels to Watco railroads — mostly those located east of the Mississippi — to provide two-day, annual refresher courses that are condensed versions of the two-week ground school taught in Birmingham.

He likes the opportunity to follow up with students with instructor-led training in the field. “They come to Birmingham for two weeks, and it’s nice to be able to go back to (their) locations ... A year later, you’re seeing that team member you trained and seeing what they retained through the course.” Milligan said.

Milligan has spent 15 years with Watco. He was a track laborer, operator, and supervisor at the Birmingham Terminal Railway (BHRR) before joining the safety training group in 2015.

Josh Lathum

Josh Lathum is based in Alabama at the Safe Performance Center and teaches two-day refresher courses, traveling to 15 railroads in Mississippi, Louisiana, Texas, Oklahoma, and Kansas. He has been with Watco since 2012 and on the safety team since 2021. Lathum says training new people in past supervisory roles with Watco’s BHRR and Alabama Southern Railroad, and at a Genesee & Wyoming railroad, contribute to his ability to train today.

Josh Roberts

Josh Roberts lives in Washington state and provides the annual refresher for team members at 12 railroads and several of Watco’s dedicated terminals and marine terminals, in 13 mostly-western states. In addition, he travels to Watco properties to teach new and experienced track inspectors.

Roberts has been with Watco since 2013, first as a MOW laborer and later a track inspector. He began his Watco safety role in 2021, but his safety experience goes back to being on the safety steering committee with prior

Cody Mobley is new to the Birmingham-based safety team, since transferring in early April to the SPC from the BHRR, where he worked for 9 ½ years. For the last several of those, he’d overseen track maintenance for the railroad’s largest customer. In addition, Mobley has traveled as a Go Teamer as needed at Watco locations. Watco recently became qualified to train team members seeking their commercial driver license (CDL), and Mobley is working with Lathum to develop a CDL training module. In addition, he’ll help at the SPC and at field locations with contractor training.

Watco Releases First-Ever Sustainability Report

Last month, Watco released its first-ever sustainability report, “Delivering a Better Tomorrow.” The report, a compilation of the company’s 2021 sustainability initiatives, takes stock of Watco’s performance and impact in environmental, social, and governance matters, identifies areas for improvement, and serves as a foundation for tracking year-over-year progress.

“Watco is known for our culture and for the specific Foundation Principles that guide us: Value Our Customers, Value Our People and Safely Improve Every Day,” said Watco CEO Dan Smith. “Sustainability efforts are inherently part of our culture and those principles, but we have not formally documented those efforts until now. This report demonstrates accountability to our commitment by sharing where we are on our sustainability journey.”

The “Delivering a Better Tomorrow” report is available here

While sustainability always has been part of how Watco operates, the company is increasing its attention on sustainability, consistent with its Foundation Principles, because “we take seriously our responsibility to continuously improve our business practices and to lead within our industry,” Smith said. “An even safer, more well-governed, socially responsible, and environmentally conscious Watco benefits our customers, our team members, our company, and the communities we serve.”

In addition to releasing the report, Watco underscored its increased focus on sustainability by naming Laura McNichol as its first Chief Sustainability Officer in December 2021. The company also formed a companywide sustainability committee to guide continuous improvement.

Many aspects of Watco’s business have positive impacts on customers and the communities where the company operates. Watco railroads reduce the burden on roads and bridges and reduce the fuel consumption and resulting emissions associated with goods movement. Watco’s ports, terminals, and logistics teams give customers options to meet their supply chain needs at a time when those options have never been more valuable. The company generates economic development opportunities and provides good jobs, and Watco’s team members give back to the communities in which they live, work, and raise families. The company’s continuing efforts to be an ever safer and more sustainable company only enhance the ways Watco benefits customers and communities across the country.

McNichol Named to Lead Sustainability Efforts

Watco’s recent appointment of Laura McNichol to lead its sustainability efforts reinforces the importance the company places on this subject.

McNichol was named Chief Sustainability Officer in December 2021. For her, Watco’s environmental, social, and governance (ESG) activities are much more than meeting customer or investor expectations.

“As we formalize Watco’s sustainability program, it is about being a good corporate citizen, doing what is socially responsible across our business, and maintaining a strong reputation in our industry,” McNichol said. “Our goal is to be an ever-improving steward of our customers, our team members, and our planet, and to lead the short line railroad industry in sustainability efforts.”

McNichol highlights several steps Watco has taken already this year. Watco is embarking on its first inventory of all direct and indirect greenhouse gas emissions. Also, for the first time, the company will include its emissions data in its report to the Global Real Estate and Sustainability Benchmark (GRESB) organization. Annually, GRESB collects companies’ environmental, social, and governance data and provides in-depth ESG performance analysis.

In the future, McNichol anticipates carbon sequestration, or storage, could be part of Watco’s ESG strategy. The approach would identify places – such as soils and vegetation along railroad rights of way – where the company is or could be storing carbon, potentially offsetting carbon dioxide emissions. She also notes that Watco continues to seek new ways to drive operational efficiencies. These innovations not only reduce emissions but using less diesel fuel also saves money. For example, a distributed power project just approved for the Austin Western Railroad will reduce fuel consumption and increase carload capacity. Distributed power allows for positioning locomotives throughout a train to reduce the overall power required to move it, increasing efficiency while decreasing fuel consumption and emissions.

McNichol’s extensive background in both railroading and sustainability makes her the ideal choice to lead Watco’s efforts. She’s spent 16 years in the railroad industry, including five years as senior vice president of government relations for Watco. Before joining Watco, she was with R.J. Corman Railroad Group for two years. Prior to that, she spent almost nine years with freight rail advocacy organization GoRail. In addition, she served for eight years as assistant director of government affairs for the National Association of Conservation Districts, an organization dedicated to helping farmers and ranchers achieve their goals in improving natural resources.

Safety Team Wraps Up Winter FREEZE Program

The Watco safety team has selected the final group of Following Rules Every Day Ensures Zero Errors (FREEZE) safety award winners. Thanks to these seven 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: Chris Hofer, forklift

operator

Location: Wood River Transload

Terminal (Illinois)

Safety Suggestion/Near Miss: Hofer identified an inconsistency in a load received.

Solution: Hofer’s observation prevented an inventory mistake and missed shipment to the customer.

Name: John Brown, equipment

operator

Location: Vicksburg Southern Railroad (Mississippi)

Safety Suggestion/Near Miss: Brown noticed that a cross arm on an electrical pole was smoldering.

Solution: After calling 911, the power was shut off, preventing what could have been a serious fire incident.

Name: Joseph Sageser, operator

Location: Ghent Marine Terminal (Kentucky)

Safety Suggestion/Near Miss: A customer requested that material be pulled from an incorrect location, something Sageser caught.

Solution: Sageser recognized the inconsistency, preventing material contamination during a melting process that would have created an end product that did not meet specifications.

Name: Jaime Vasquez, heavy equipment operator

Location: Greens Port (Texas)

Safety Suggestion/Near Miss: While working a cargo vessel using the ship’s crane, Vasquez identified several strands of broken cable.

Solution: Vasquez exercised Stop Work Authority. The team identified an alternative to unload the vessel, which prevented a safety issue with the crane and a costly delay.

Name: Jeffrey Chadwell, railcar mechanic

Location: Coffeyville Repair and Maintenance Terminal (Kansas)

Safety Suggestion/Near Miss: Chadwell identified a worn brake pedal on a material handler.

Solution: The equipment was set aside for repair, preventing an unsafe operating condition.

Name: Brian Howell, railcar mechanic

Location: Dallas Mobile Repair (Texas)

Safety Suggestion/Near Miss: During inspection of a grinder prior to use, Howell identified a trigger safety defect, making the tool unsafe for use.

Solution: He removed the tool from service, averting an unsafe operation.

Name: Evan Riner, railcar mechanic

Location: Omaha Repair and Maintenance Terminal (Nebraska)

Safety Suggestion/Near Miss: Riner was reviewing the procedures for operating through overhead doors when he identified a condition in the standard operating procedures that needed to be reviewed and potentially changed.

Solution: The procedure will be updated to help ensure safe operations and location of the second kit.

There’s No Stopping this Small but Agile New York Team

The Ithaca Central Railroad (ITHR) is no stranger to natural disasters or inclement weather. Mudslides, rockslides, and frigid New York temperatures are just some of the conditions this railroad regularly faces.

Regardless of what Mother Nature may bring, the ITHR team always seeks new solutions to safely move freight to its next destination. General Manager Michael Cooper said, “My team constantly adapts to any challenging environment, even if that means moving boulders off the track.”

Cooper’s team is small but agile. Helping run the ITHR and maintaining nearly 50 miles of track are Operations Manager Thomas Nicholson, Conductor Patrick Michalski, Track Foreman Thomas Gould, and Locomotive Mechanic Jack Fisco. Russell Whitaker, a project supervisor at the Alabama Southern Railroad, has also traveled to assist the ITHR off-and-on for the last three years.

Job titles don’t come close to accurately describing what these team members do each day. They’re all cross-trained to perform various duties outside their scope of responsibilities. Rather than saying “it’s not my job,” Cooper says his teammates embrace learning new trades and expanding their skill sets.

It’s this work ethic that bonds these team members together, even on winter days with a wind chill temperature of minus 30 or four feet of snow on the ground.

“We face extremely harsh winter weather conditions. But because we look out for each other and make communication a priority, we’re able to safely do our jobs,” Nicholson said.

“In my 27 years of railroad experience, I’ve never been around a group quite like this. They are ready to jump in and help wherever it’s needed,” Cooper agreed.

Texas Students Learn Logistics

Watco team members love sharing what we do, and Michelle Bowling had that opportunity on April 13 at Harpool Middle School’s Career Day in Denton, Texas. Bowling, Watco’s vice president of sales for logistics, discussed how all types of products require logistics and supply chain solutions to get from the manufacturer to retail stores and into consumers’ hands. The products include food, clothing, electronics, and even virtual reality headsets, which two students won from Watco Logistics.

May is Mental Health Awareness Month

In honor of National Mental Health Awareness Month, we are shining a light on the free mental health services available for all Watco team members through the Team Member Assistance Program (TMAP).

Whether you are facing stress, feeling sad, or seeking information on forming healthy habits; the TMAP is here for you. Here’s some information to help you get started.

What is the TMAP?

Offered through New Directions, TMAP offers these confidential, free services year-round:

• Counseling and coaching services

• Crisis support

• Financial and legal consultations

• Training, webinars, and other educational resources

Who’s eligible to use the TMAP?

Regardless of health insurance provider, all Watco team members and qualified dependents can use the TMAP.

How do I get started?

New Directions is available 24 hours, 7 days a week. To start, call (800) 624-5544 or visit: eap.ndbh.com. Apple or Android users can also download the New Directions EAP app from the App Store or Google Play. When prompted, mention or enter the company code Watco

Last Call for Graduation Announcements

The school year’s end is quickly approaching, and many family members of the Watco team will be crossing stages across the continent (and ocean) to receive their diplomas.

Watco would like to acknowledge their hard work and show how proud we are of all graduates from our families by listing them in the June edition of The Dispatch.

If you would like to have your graduate’s information listed, please use this link to fill out a simple form so we can recognize your graduating family members.

Levi Phelps and Joely Gath announce the birth of their daughter, Eleanor Elaine Phelps, born April 7, 2022. Eleanor 20 ½ inches long.

Levi is a laborer at the Pittsburg Transload Terminal and Joely is a storage coordinator, working out of the Pittsburg, Kansas, office.

Eleanor Elaine Phelps

Team Member Anniversaries

1 Year:

Horacio Amador, Zarion Anderson, Leonel Benitez, Dylan Bollinger, Dustin Bostic, Kevin Brackney, Corey Bryant, Eric

Bushong, Romaine Cambridge, Dawn Castle, Calvin Chastain, Andrew Coffey, Connie Coffin, Jarius Coleman, Devin Comeaux, Marcelino Concepcion, Julie

Cooper, Jose Correa, Michael

Cunningham, Kristina Dahlquist, Billy Dees, Florentino Duarte

Ibarra, Craig Dutenhafer, Lynn

Eckmann, Clinton Falcon, Matthew Frick, Raul Garza, Raul

Gonzalez, Hunter Gordon, Dennis

Hensley, John Hernandez, Jose

Hernandez, Wendall Hoffman, Charles Hopkins, Brian Howell, Justin Hurt, Nicholaus James, Frank Ledet, Nicholas Mathis, Justin Mcknight, Christian Mejia, Michael Meniw, Michael Mitchell, Efrain Molina, Gustavo Montes

Barrientos, Caleb Mowl, Ethen Myers, Aaron Naber, Jonathan Nelson, Miguel A Neri, Jesus

Rayos, Ernesto Resendiz, Nellie

Rice, Ronald Robichaux, Anthony Rodarte, Ventura

Rodriguez, Rodney Samuel, Dorrien Sanders, Denise Santana, Anthony Solie, Spencer Standley, Joshua Stewart, Dax Stormer, Tyler Suttle, Wade Tatro, Logan

Threet, Erin Tyler, Juan Vargas, Tyler Walker Edge, Brady

Whipple, Liteanna White, Garrett York, Emerson Zentz

2 Years:

Hunter Anderson, Jimmy Caceres, Shiuan-je Chen, Kimberly Cohen, Adam Hulse, Trysten Lewis, Jonathan Rice, James Richey, Christopher Senst, Lyntrell Thomas, Zachary Tipton

3 Years:

Raul Aguirre, Miguel Barrera Vasquez, Elliot Bercier, Kenneth Berg, Gregory Carley, Jesse De Soto, Roy Dixon, Connor Ferguson, Barry Fredericks, Juan Garcia, Juan Garcia Perez, Kim Gardner, Angelica Godinez, Tex Grantham, Dana Hartleib, Charles Hernandez, Martin Hernandez, Daniel Hindmarch, Tevin Hooper, Larry Huff, Christian Iverson-Sorrells, Jonathan Keller, Rudy Lopez, Michael Maddux, McKenna Mitchell, Ronnie Mooney, Tony Perkins, Armando Reyes, Victor Reyes, Martin Rodriguez, Deanna Smith, Jacob Wasserman

4 Years:

Brooks Backes, Richard Burns, Willard Burwell, Jose Carrizales, Richard Cooper, Nicholas Desjarlais, Perla Diaz, Alton Durham, Joshua Fetzer, Justen Gardner, Andrew Gossett, Robert Green, Roosevelt Green, Jimmy Guyton, Abraham Hamilton, Dionicio Hernandez, Harold Jackson, Jessica James, Derrick Johnson, Danny Kelley, Robert Koehn, Zachary Landrum, Charles LaRocque, Tuscan Larsen, Bielka Leiva, Brett Lindstrom, Stephen Maloney, Jarrett Manharth, Sheldon Mashburn, Bret McGuire, Mercedes Medina, Detayvious Merrill, Ronald

Owens, Shannon Parker, Jose Perez, Walter Punteney, Donald Ryan, David Sanchez Gonzalez, Joshua Schultz, Dalton Want, John Watson, Jason Williams, Lynae Womble

5 Years:

Mario Almazan, Evan Baker, Shane Bauer, Alexander Blum, Joshua Briseno, Chris

Capitano, Jerald Clark, Isaac Coomes, Keith Cornett, Tony Garcia, Veronica Garcia, Cole Kershner, Rojelio Lopez, Christopher McGee, Kenneth Morgan, Aaron Morris, James Ortiz, Jennifer Otto, Luis Oyervides, Olin Pegues, Ray Price, Logan Reed, Kylie Robinson, Erick Wagoner, Jimmie Welch, Chad Zentz

6 Years: Keith Abele, Jorge

Castaneda, Christian Daniels, Joshua Golightley, Tori Herman, Charles Hudson, Matthew Magee, Chris Martin, Tyler Sessions, Amanda Thomas, Scott Young

7 Years: Cameron Allen, John Bickle, Dustin Brant, Miguel Cantu, Miguel Cantu, Gardner Cole, Shanna Damesworth, Willie Gibson, Zachary Hilton, Garrett Hoover, Adam Johnson, Johnni Lawrence, Pedro Luna, Paul Martin, Chad Matthews II, Omar Reyes, Michael Robert, Jennifer Simpson, Matthew Sprayberry, Daniel Tumbleson

Congratulations to the following team members celebrating May anniversaries:

Team Member Anniversaries

8 Years: David Alvarado, Tim Cain, Pamela Cannon, Travis Chamberlain, Derrick Davis, Caleb Dellasega, Rasheed Devine, Sharon Hansen, Michael Holland, Brandon Lockley, Matthew Lumm, Christopher Maxwell, John McRae, Christopher Nunnelley, Jerry Quintana, John Ray, Jacob Short, Dwayne Smith, Jerry Waun

9 Years: Jordan Brown, Shawn Delaney, Tabitha Hansen, Kris Hemby, Jeffrey Huser, Cole Schulz, Lawrence Shinavar, Jessica Swafford

10 Years: Terry Bell, Timothy Boyd, Trinity Campbell, John Davis, Daniel Farr, Tashata Jackson, Raul Lazo, Jerry Lowe, Drexel Newton, William Patterson, Daniel Perez, Lovon Simmons, Russell Spragis, Matthew Tarwater, Christopher Thomas, Christopher Thyer, Mem Webb

11 Years:

David Castagno, Anthony Hampton, WesleyLindell, Christopher Miller, Kenneth Powell, James Richards, Robby Rodriguez, Samuel Rodriguez, Jack Scott, Terence Snell, Jeremy Stegner

12 Years: Mario Bretado, Kristopher Colley, Adam Hall, Joshua Holt

13 Years: Kevin Anselmi

14 Years: Thadius Hawkins, Nakia Jenkins

15 Years: Michael Hubbs, Ricardo Leija, Danyale Norman, Jeffrey Raker, Matthew Smith, Chris Spear

16 Years: Jason Danz, Matthew Koser, Gregory Lewis, Hugh Peo, Dan Sanger, Keith Schlotman, Nicholas Zerebiny

17 Years: Aaron Coester, Douglas Corbin, John Gaither, Evan Groth, Timothy Groth, John McFadden, Jason Noll, Charles Wagner, Ron Willman

18 Years: Aaron Hawkins, Melissa Ross, Bradley Walker

19 Years: Matthew Fetzer, Horace Gore

20 Years: John Banks, James Lilly, George O’Connor

21 Years: Enrique Castillo, Christopher Hamill, Allen Kellar, Richard Kelly, Duane Spurrier

22 Years: : Chuck Shaffer

23 Years: Robert Cronch, Terrance Redd, Casey Thrall

24 Years: Howard Belgrod, Stanley Bryant, Thomas Lipp, Douglas Marshall

25 Years: Scott Davis, Jason Jeane, Calvin Jyles

26 Years: John Snow

27 Years: Barbara Cody

30 Years: Walter Tisler

32 Years: Terry Schiska

33 Years: Michael Brown, William Gray

34 Years: Randall McPherson, Todd Mulrooney

35 Years: Terry Market

36 Years: Mark McClellan, Jay Prawucki

37 Years: Daniel Barrington, Patrick Ray

43 Years: Michael Roberts

44 Years: Jose Acosta

49 Years: Braden Seese