Watco to operate Wyoming line, acquire Wisconsin & Southern

Watco Transportation Services, L.L.C. (Watco), formed a new shortline railroad, the Swan Ranch Railroad (SRR), to serve the rapidly growing needs of the energy sector. The SRR will operate within the newly developed Swan Ranch Industrial Park in Cheyenne, Wyo., the largest logistics hub in the Rocky Mountain Region. This development is at the crosshairs of two Class 1 railroads, Union Pacific and BNSF, as well as two major interstate highways, I-25 and I-80, making it a prime location for manufacturing and distribution companies. When fully developed, the Swan Ranch Industrial Park will encompass approximately 7,200 acres. The first phase of development is the Cheyenne Logistics Hub, which will total 1,300 acres and include a transloading facility. Several companies have already expressed interest in this property, which is being developed by Granite Peak Development. Watco filed a petition today with the Surface Transportation Board for the SRR to operate the 17,192 feet of track in the premier logistics hub as a switching railroad. This railroad will be the first Watco-owned shortline operating in the state of Wyoming and within an industrial park. Jebro, Inc., a manufacturer and distributor in the asphalt industry, is the first company to open in the park and will begin receiving railcars in December of 2011. In other news, Watco Transportation and The Wisconsin & Southern Railroad Co. have mutually approved an agreement whereby Watco will acquire controlling ownership of the WSOR. The acquisition will allow the WSOR to expand its footprint throughout the Midwest, seek out new markets and cost-effective routings for Wisconsin businesses, while maintaining the same level of service and commitment to the state of Wisconsin and its shippers that have defined its 30 year history. Under the agreement, the WSOR will retain its existing corporate structure including its name and all operations to continue to serve its customers and provide outstanding service to Wisconsin communities. WSOR headquarters will remain in Milwaukee, Wis., where dispatching, customer service and other administrative functions will be operated out of.