theDispatch The newsletter for Companies, LLC and Watco Transportation Services, LLC March 2012, Volume 13, Issue 3

Republic Paperboard has business in the “bag” by Tracie VanBecelaere “The reason we’ve been shipping more by rail is paperboard to their interchange with BNSF in Okla- Managing Editor due to a few different factors,” said Lisa McGregor, homa City. Already this year Republic Paperboard’s Republic Paperboard president. “Our product mix has carloads on the SLWC are up 40% and according to After a long day of shopping you haul your bags into allowed us to utilize 60 ft. railcars with newly created McGregor that trend should continue. the house and crash on the couch to take a break. If load patterns which make rail a more effective trans- “We’ll soon be adding shipments to customers on you look around the room there are two things near portation mode than trucking. Also, much of our the West Coast and Central U.S.,” said McGregor. you that could have been made by products manu- expanded customer base can be serviced by the BNSF Currently Republic Paperboard delivers its com- factured by Stillwater Central Railroad Customer or switched to another rail line.” modities to locations such as Western and Central Republic Paperboard. Republic Paperboard makes The SLWC delivers the cars of paper and gypsum Canada, southern Texas, Illinois, and Kentucky with the paper used in the paper bags that department expectations of that increasing as the customer and grocery stores use to pack your purchases base continues to expand. It is Republic Paper- in. The Company’s core business is producing board’s intention to continue to promote the use gypsum wallboard paper, the covering on what of rail to its customers where applicable and cost we commonly call sheetrock which is used for effective. building the walls in our homes. Just a few years ago rail wasn’t looking all that Our Customer First Foundation Principles attractive to Republic Paperboard. The company state the importance of building long-term was dealing with issues regarding demurrage and relationships with our Customers and growing higher rail rates. Steve Mans, Republic’s logistics our business together. Republic Paperboard took and warehouse manager, said that SLWC market- care of the growing their business part of the ing manager Carla Rice has been very helpful in deal. In the past few years they have aggressively resolving many of their rail related issues. been seeking ways to attract new customers “Carla is one of the better rail reps we’ve had,” which in turn has increased their rail shipments said Mans, who’s been with Republic Paperboard on a monthly basis. Republic Paperboard’s Lawton, Okla., facility. for 31 years. “She’s helped (Continued on page 4) Things coming together for Western Australia grain trains by Tracie VanBecelaere line and will begin the journey from Boise, to Colin Tutt, CHB general manager of operations Managing Editor the East Coast where it will be loaded onto a ship for said, “The completion of the first locomotive is an the journey to Australia. This follows the arrival of exciting step in the process towards CBH owning its The pace is picking up and things are coming 50 standard gauge wagons (railcars) that arrived in first rail fleet. Having been in Boise to witness this together for Watco’s Western Australia Rail Team and Australia from China last month with another ship- momentous occasion I can confirm the locomotives The CBH Group. The first of 22 locomotives to be ment expected in mid-March. The final group will be are of the latest designs and (Continued on page 6) delivered to Western Australia recently rolled off the arriving in July. The new wagons feature the latest designs and tech- nology using aluminium for the body which will allow CBH to load more grain into each wagon, approxi- mately 10 tonnes (370 bushels), more than the steel ones being used. The new wagons will also be safer than ones previously used as they have auto hatch and discharge doors as well as scanning technology. These features will require less direct interaction from team members leading to a safer work environment. When CBH Group awarded Watco its long-term grain rail contract they also announced that they would be investing $175 million in rolling stock which Watco would operate and maintain. This investment includes the 22 locomotives from Boise and a total of 574 new wagons. There will be a total of 446 narrow The first CBH locomotive is painted with their new color gauge wagons and 128 standard gauge to fit Western One of the new wagons (railcars) for the CBH Group’s scheme and ready to be sent to Australia. Australia’s (WA) varying rail widths. fleet being unloaded from the ship from China. theDispatch page 2

Mechanical Safety Summit 2012 held in Pittsburg by Tracie VanBecelaere In addition to the guest speakers, a variety Managing Editor of EHS Team Members also presented information on a variety of topics. On day A summit can be used to describe a high one Dr. Withers presented an Introduction point or a meeting of dignitary type indi- to JJ Kellers On-Line Service for EHS Train- viduals. At the Watco Mechanical Safety ing, Regulations, etc., Butch Harris covered Summit of 2012 it was both. The high point Slack Adjuster Securement Procedure and was the exchanging of important informa- John Murray reviewed Air Monitoring tion, ideas and practices. Of course, the Testing for Confined Space Entry and dignitaries were the members of the Envi- Applying and Removing Scaffolding to ronmental, Health and Safety (EHS) Team Covered Hoppers was presented by Justin that had gathered together for the annual Rivers. event. On day two Ray Barroner presented The team met on part, for review, discus- Removing and Replacing Large Eduction sion and implementation planning for the Tubes (that don’t have threaded connectors) 2012 Action Items and Safety Plan. The and James Llyod discussed Fall Protection. group had a couple of guest speakers, Byron Day three concluded the summit with Safety Summit 2012 attendees (l-r): James Rader, SVP-compliance services; Stokes, with Stokes Consulting and Paul discussion of EHS Training Topics, EHS Re- Butch Harris, EHS manager-Junction City, Kan.; Brian Clark, EHS man- Schiefelbein, Watco’s vice president of stra- view and Summary and then they conclud- agerFitzgerald, Ga.; James Lloyd, EHS manager-Hockley, Texas; Robert tegic planning. Stokes spoke to the group ed the summit with team building activities McKinnon, EHS manager-Scottsville, Ariz.; Ray Barroner, EHS manager- on the topic “Public Speaking Techniques at Holiday Lanes, a local bowling alley. Hollidaysburg, Pa.; Dr. Ron Withers, corporate EHS director; Bill Welch, and Training” and Schiefelbein spoke on “It was a very informative and enjoyable EHS manager-Wood River, Ill.; John Murray, EHS manager-Coffeyville/ accident investigation and Injury/Incident three days,” said Junction City EHS man- Cornell, Kan.; Cliff Hogan, EHS manager-Neodesha, Kan.; Justin Rivers, EHS Electronic Reporting. ager Butch Harris. manager-Zwolle. La.; and Michele Howard, safety admin.-Pittsburg, Kan. Alabama Southern Railroad Team four years injury free by Tracie VanBecelaere spared. What wasn’t spared was the Hur- Managing Editor ricane Creek Bridge, a 110 feet high and 563 feet long bridge on which rail traf- There’s a saying that in Alabama “Roll fic flowed from Birmingham to Tusca- Tide” is a universal expression acceptable in loosa. Traffic had to be rerouted until the nearly every situation as a greeting, farewell, massive structure was rebuilt with work standard cheer or praise. Appropriately it being completed just two months ago. In is necessary to send a big “Roll Tide” to the addition, in many areas, trees, debris and Alabama Southern Railroad (ABS) Team on even electrical lines littered the area’s rail hitting the four-year injury free mark. lines. Although in itself, going four-years injury So despite the worry about friends and free is quite an accomplishment, making family, having to clear track and reroute it with all the distractions of the past year traffic, the Team accomplished the amaz- make it even more so. Last April, Tusca- ing feat of not only carrying on their loosa, the heart of the ABS, was hit by an injury free record but there were also no EF4 tornado that wreaked havoc upon the human factor incidents as well. community. The horrific storm claimed the Todd Johns, ABS general manager has Above left to right: Pete Teijen-Gulf Region QA manager; Brian Ezell, en- lives of 65 people in the Tuscaloosa - Bir- a favorite quote by Paul ‘Bear’ Bryant, gineer/conductor; Josh Williams, assistant roadmaster andCedric Bonner, mingham area as it ripped through build- long time Alabama University coach, “If locomotive mechanic. ings and tossed cars through the air as if you believe in yourself and have dedica- they were toys. tion and pride and never quit, you’ll be a “The ABS Team has stayed true to this, they believed in them- The ABS Team was blessed, each one of winner. The price of victory is high but so selves and never quit. There were so many distractions but they our team members and their families were are the rewards.” showed their character and came out winners,” said Johns. Graduation Announcements In a short while members of the Watco Team and/ your or a graduate’s information listed, send in the sity, Stillwater, Okla., with a Bachelor of Science in or their family members will be crossing stages information in the following format: Accounting. across the continent (and ocean) to receive their Graduates name: relationship to Watco Team mem- Send your graduation information to: diplomas from various academic institutions. ber, Watco Team member’s title and location. The Tracie VanBecelaere, Watco Companies Watco would like to acknowledge the hard school graduate is attending and location of that 315 W. 3rd Street, Pittsburg, KS 66762 work of all graduates from school. If the graduate is receiving a degree from a or email them to: [email protected] our families by listing them college, university or trade school list the graduates and add Dispatch-May Graduation in the subject in May’s edition of The degree type. An example would be: Billy Doe: Son line. Dispatch. of John Doe, locomotive mechanic in Oklahoma December graduations will be included with the If you would like to have City, OK; graduating from Oklahoma State Univer- May graduations. theDispatch page 3

GoRail essay wins Team Member trip to DC by Tracie VanBecelaere We affect numerous Customers who all have employ- and a once vibrant Managing Editor ees that they have to take care of, we touch the two town pumping thousand six-hundred plus Watco team members with life will slowly Most people are able to leave essay writing be- and their families and we touch all the communities wither away. hind them when they graduate from college but that rely on a business that may not be there except I have witnessed as a lawyer, Watco’s associate general counsel Tom for the rail. To that end it makes what we do more the transfusion Hayes is definitely still in the writing business. When expansive than just our own little circle.” that takes place GoRail offered an expense paid trip to Railroad Day GoRail is an organization supporting policies that when a rail line is on Capitol Hill, Hayes set pen to paper, or fingers to benefit the rail industry and defending against harm- transplanted and keyboard in this case. His endeavor paid off and his ful legislation. Because the next two years could revived. An infu- essay is taking him to Washington, D.C., where he bring hard-fought legislative battles over issues such will be recognized at the Railroad Day legislative re- as additional regulation and stimulating increased sion of excitement Tom Hayes, Watco Associate Gen- ception and dinner on March 8. This will be the end investment in rail, GoRail felt it was especially im- is generated. It is eral Counsel of an eventful day which will involve back-to-back portant to have representatives in D.C. to give the rail if an artery was meetings with representatives to discuss the issues industry a voice. damaged and life and challenges that face the railroad industry today. Below is Hayes’ winning entry. was being drained, then the railroad line is reattached Some of the topics include; reasonable regulation, The Life Blood - by Thomas Hayes to a community, hope is restored and communities the short line tax credit, opposition of bigger and Transportation has been the life blood of commu- and a country come together. Likewise, these commu- heavier trucks and the preservation of the Sec- nities and countries ever since a trader crossed the nities and customers are the life line of the railroad. If tion 130 Highway-Rail Grade Crossing Safety Sinai Peninsula carrying goods from the Orient to the one or the other suffers they both suffer. Program. West. This was evident in the rise of Rome whose If the Government was a surgeon it would be work- Hayes is the first ever representative of a transportation system allowed it to canvass troops ing hard to keep the countries’ blood line healthy. It short line or regional railroad company throughout Europe and Asia. This life line has would be proactive in preventive measures to avoid a to be selected as an essay winner by the loss of rail service to even the smallest communities. GoRail organization. evolved now to the Railroad and especially now The cry “The Railroad is Coming” is must be kept Hayes said, “One of the reasons I the short line railroad. History has proven wrote the essay is since I have been the fact that the Railroad infuses the Coun- alive today as it was two hundred years ago. at Watco I have felt there is a greater try and communities with life. Cut off the Anyone interested in finding out more about short purpose behind the Com- rail lines and the South crumbled during the lines and legislative issue affecting them can go to pany than just being a Civil War. Take away a short line through the ASLRRA web site at www.aslrra.org and click on transportation company. a community and the businesses will leave the Legistative link at the top of the page. KO ON ICE - FREEZING FOR A REASON by Tracie VanBecelaere supporting a good cause but this was a really good team building experience for Managing Editor us as well. We proved what a good management group we really have on the KO by showing how well we can work together outside of workplace. That’s some- Normally in the month of February the Kansas and Oklahoma Railroad (KO) thing we can bring back to the KO that will only benefit all of us in the long run.” Team is working on “Freezing Out Injuries”, the winter safety program, but on In addition to the plunge there was a Costume Contest, February 4 they were literally freezing and for a good chili feed, Silent Auction and a mile walk/run. Statewide the cause. Five hardy railroaders from the KO headed out in event is the largest fundraiser for the SOKS and raises about the chilly 35 degree weather at the O.J. Watson Park in $200,000 to $250,000 each year. Wichita, Kan., to participate in the Special Olympics of Hayes said, “Super job by all of the KO Team. From the Kansas (SOKS) Polar Plunge fundraiser. guys who actually jumped to the rest of the team members Participating in the event for the KO On Ice team were who donated to the cause. This was a perfect opportunity Brad Hayes, general manager; Jimmy Patterson, assistant for our company to get out with the community we live in general manager; Chad Taylor, trainmaster; Joe Patalano, and lend a hand to a great, great cause. Plus, we had fun trainmaster; and Dan Brewer, car foreman. Jason Hislop, doing it. I couldn’t be more proud of our team.” WTS locomotive shop foreman helped raise money but Special Olympics of Kansas annually serves more than was unable to jump because he was dispatched to 5,500 children and adults with intellectual disabili- another location to assist with a start up . Herb Lam- ties through a grass-roots network of volunteers kin, roadmaster was also unable to take the plunge who serve as coaches and organize local events but helped raise funds by baking cookies to sell and offered throughout the year. SOKS does not receive collecting donations. governmental funding and is not a United Way Patalano said, “I’m a huge supporter of the Spe- agency, but relies solely on the generosity of indi- cial Olympics so when this opportunity came up I viduals and corporate donors. jumped for it. It was cold, really cold...but a lot of fun.” Above left: the KO on Ice team sprints down a boat ramp There were 22 teams participating in the event into the lake at O.J. Watson Park in Wichita, Kan. with a total of 85 individuals. The event raised more Bottom left: KO on Ice team (l-r) Dan Brewer,car fore- than $18,000 for the SOKS with the KO Team con- man; Joe Patalano, trainmaster; Brad Hayes, general tributing approximately $700. manager; Jimmy Patterson, assistant general manager; “It was a lot of fun,” Brewer said. “Not only are we and Chad Taylor, trainmaster. theDispatch page 4 New railroad serves logistics hub Republic by Tracie VanBecelaere SRRR general manager Dave Ruggles said, “ The Managing Editor community has embraced the industrial park and is excited to bring new Customers to the area. It’s excit- Paperboard The most common association with the word swan ing for me to build the railroad from the bottom up. is Swan Lake, the ballet that most people have heard I’ve received excellent support from all areas of the (Continued from page 1) work out demurrage prob- of, if not seen. At the , the only company and am very excited about this new start- lems and helped investigate leasing railcars to help scheduled dancers will be the gandy dancers who will up.” with costs. Carla has always been good about follow- be laying additional track as the facility adds new ten- Ruggles came to the Swan Ranch from the Yel- ing up on issues and working with the BNSF on our ants. The Swan Ranch Railroad (SRRR) was formed lowstone Valley Railroad in Montana and through behalf.” as an answer to the growing needs of the energy his work there he is familiar with the same Custom- Rice said, “The first Customer I got to meet dur- sector in the West Region. The SRRR is operating ers from the energy sector that the park is hoping to ing my training as marketing manager was Republic within the newly developed Swan Ranch Industrial attract. Paperboard, not to hear how good of a job we were Park in Cheyenne, Wyo., which is the largest logistics “I’ve worked with the oil, propane and sand Cus- doing, but how we were not doing a good job. I made hub in the Rocky Mountain Region. tomers in Sydney (Mont.) and their biggest problem it my goal right then to do everything possible to The development features a prime location at the was the congestion, I think this facility will help solve rebuild that relationship and turn things around.” crosshairs of two Class I railroads, the Burlington their transportation issues,” said Ruggles. “Communication has been the key,” said Rice. “I lis- Northern and Santa Fe and the Union Pacific. Not ten to what their needs are and try to understand how only will it have access to the two railroads but it also to best serve those needs not only now but for future is located near two major interstate highways, I-25 growth as well. We have monthly meetings to discuss and I-80, making it a choice site for manufacturing how things are progressing and what they need from and distribution companies. When the site is fully us to make things flow better. They’re a great Cus- developed it will encompass 7,200 acres. tomer and I look forward to continue building our Phase one of the development is the Cheyenne Lo- relationship.” gistics Hub which will total 1,300 acres and include a With the aggressiveness and innovations that transloading facility. The SRRR will initially operate Republic Paperboard has shown, a long-term rela- 17,192 feet of track in the premier logistics hub. The tionship is definitely in the makings for the Stillwater first company to open in the park, Jebro, Inc. began Central and this great Customer. receiving railcars the first week of January 2012. The BNSF delivers the loaded asphalt cars to the SRRR A train on the Swan Ranch Railroad delivering cars to who then hands them off to the Customer. Jebro, Inc., the industrial parks first tenant. Safety Award winners announced by Travis Herod First Foundation Principles to foster a culture of Safety Director safety and ensure a safe operation for their Railroad Family and Customers. The final RPI numbers for 2011 have been posted to Thank you to the railroads listed for a job well done, the FRA website. These numbers are used to award keep that same focus for continued success in 2012! the annual Jake Awards for ASLRRA member rail- roads who excel in safety. A Jake Award is for all rail- Jake with Distinction Award Winners roads who post a Reportable Personal Injury Ratio (ZERO RPI) below the ASLRRA average, and a Jake with Distinc- 1. Alabama Southern Railroad Republic Paperboard employees are busy keeping up tion award goes to those railroads who recorded a 0.0 2. Arkansas Southern Railroad with demand for paper rolls. RPI ratio by going injury free for the entire year. 3. This year there was significant competition, as 4. the RPI average continues to drop - last year 5. Mississippi Southern Railroad the ASLRRA average was a 3.04 and 6. Palouse River & Coulee City the in 2011, the average dropped to a Railroad Dispatch 2.91, a respectable decrease over 7. Timber Rock Railroad last year. 8. Baton Rouge Southern The Dispatch welcomes and encourages This year 15 of our 23 railroads Railroad input from all readers. in operations during 2011 are recog- 9. If you are interested in submitting articles, nized for the success they achieved for 10. story ideas, photos and announcements 11. the year. Of those 15 railroads, 12 will (wedding, birth, etc.) e-mail them to: be receiving a Jake with Distinction 12. Autauga Northern Railroad Award for going injury free for [email protected] all of 2011. Three railroads will Jake Award Winners or send to: receive a Jake Award for beating (RPI ratio below that of Tracie VanBecelaere the ASLRRA average. ASLRRA Avg. (2.91)) Watco Companies Please join me in congratulating these 1. 315 W. 3rd Street railroads and their respective teams for their 2. Kansas & Oklahoma Railroad Pittsburg, KS 66762 outstanding achievement and their demonstrated 3. South Kansas & Oklahoma Railroad commitment to utilizing the Watco Customer theDispatch page 5

AT C O W March Anniversaries Congratulations to the following team members celebrating Goodsell, Charlene Huskey, Luis Maranon, Robert their anniversaries! Martinez, Charles Mier, Rocky Ramage, Kevin Watkins, Kevin Wells, Travis Winters, Michael 1 Year: Tyler Barton, Fred Benegas, Ernest Beye, Zillifro W Cassie Bicknell, Brock Bjelland, Mark Bolinger, 9 Years: Mike Balls, Dave Bullion, Frank Davis, O L D Mike Borovetz, David Brown, Taylor Carter, Cory Roger Easterling, Wayne Ghan, David Gibson, Ken R Clendenen, Evaristo Corona, Lori Cox, Shawn Lucht, James Williams Daniels, Christopher Davis, Henry Delgado, Robert 10 Years: James Avant, Bernardo Cuevas, Terry This section is dedicated to the Watco Team Diehl, David Durbin, Destry Dyke, Ambrosio Kudick, James May, James Napier, Walter Stromberg members to give you a chance to share what’s Escamilla, Codey Fitzpatrick, Richard Grant, Justin 11 Years: Julie Fortman, Joshua Kramer, Brad Snow, happening in your corner of the Watco World. Harless, Joe Hickerson, Jeremy Johnson, Norman Joe Welch Jones, Jeremy Judd, William Kincel, Marcus Lawrence, Earnest Love, Jack Marsh, Alan Miller, Births Michael Moyer, Sage Nelson, Cris Neuman, Daniel Paul, Gregory Renfro, Arland Reynolds, Nickolas Norah Jane Spear Saunders, Benjamin Savlan, Shannon Scott, Chris and Darci Spear Kevin Sepulvado, Jeremy Shepard, Devon are proud to announce the Shiplett, Siegfried Sprague, Luis Sustaita, birth of a daughter, Norah Mark Swan, Gerard Sybert, Brenda Troutt, Jane. Norah was born on Franklin Waun, Scott Wolff, Kathleen January 30 and weighed 7 Woods, Malcolm Young lbs., 15.6 oz. and was 20 2 Years: James Blevins, Audie 1/2 inches long. Cavazos, Dustin Coester, Zach Norah was welcomed Collingsworth, Trinity Condon, home by her big brother Jonathan Crumly, James Daly, Jack, 2 1/2. Norah Jane Spear Timothy Housel, Anthony Chris serves as a human Jones, Vicki Langford, resource manager and works out of Coffeyville, Kan., Jarrod Mann, Andrew and Darci is an operations and systems analyst in the McBride, Louis Pittsburg, Kan., office. Pena, Jeanette Sarynah Emily Angulo Quidachay, Kevin Jessica and Jesus Angulo Robertson, Dean are proud to announce the Schexnayder, Jason 12 Years: James birth of a daughter Sarynah Stout, Cesar Valentin, Brady, Kathy Carr, Emily. Sarynah, Spanish John Woods Edward Garcia, for Serina, was born on 3 Years: Jason Atteberry, Scott Carlita Guiles, February 20 and weighed Henderson, Gerald Kerns, Timothy Michael Umbarger 7 lbs., 10.4 oz., and was 19 Largent, Gerardo Martinez, Jacob Meyers, 13 Years: Glenn Hilliard, Ron ½ inches long. Bernardino Osorio Vargas, John Rood, Dan Smith, Martin, Terry Parsons Proud grandparents are Cecil Traylor 14 Years: Mark Arsenault, Randy Letner, Brian Sarynah Emily Angulo Adel and Tenos Barajas. 4 Years: Robert Carr, Sean Corr, Kevin Duncan, Waters Adel is a customer service Devod Faison, Gwen Foster, Robert Gable, Rodney 15 Years: Dee Dee Anderson, William Coffman, representative at the Glensdale, Ariz., transload facil- Gordon, Scott Harella, Jennifer Johnson, Scott Ronald Tapley ity and Tenos is yard foreman at the same location. Keener, James Maddux, Brett Norris, Judson Rogers, 16 Years: William Carroll, Anthony Jernigan, Curtis Eva Rokezewski, Adam Shaffer, Todd Shomo, Robbins Weddings Marreyon Thomas, Lloyd Wilson 17 Years: Steven Coleman, Dick Fogliasso, Dexter Jensen-Piccinelli 5 Years: Sergio Arratia, Keith Barksdale, Mitch Reeves Larry Jensen and Becker, Bruce Brewer, Lyman Brown, Frank Estep, 18 Years: Mark Green, Steven Morgan Denise Piccinelli were Patrick Holden, Larry Jensen, Esteban Lechuga, 19 Years: Herb Lamkin, Jeffrey Lievers, John Stepien, united in marriage on Robert Monahan, Israel Santos, James Shomo, Danny James Stumpe February 18, 2012. Sims, Brandon Welch 20 Years: Silas Whitley They were married in a 6 Years: Stephen Brath, Timothy Costner, Oscar 21 Years: Dan Linden small chapel in Eureka Fomperosa, Marlin Garcia, Robert Gilbert, Barry 22 Years: Hayden McElroy Springs, Ark. Karlberg, James Mayfield, John Neel, Michael Rogers, 23 Years: James Crawford, Charles Layfield Larry is a senior vice Joe Sandoval, Heather Sepulvado, Kellie Sisler, Larry 24 Years: Bryan Benson, Bernard Kezerle president and chief Sperier, Gary Westphal, Douglas Williams 25 Years: Dennis Cooley mechanical officer for 7 Years: Patti Audet, Adelita Barajas, Tyler Batley, 26 Years: Billy Eddington Watco and Denise is Ed Davis, Michelle Fellers, Brandon Freeman, Gary 28 Years: Jim Herman Larry and Denise Jensen a hardware installation Fultz, Michael Galla, Kenneth Hanville, Adam 29 Years: Daniel Malignani planner at the HP Datacenter in Tulsa, OK. Harper, Kristi McGowan, Ricky Paine, James Rein, 31 Years: Jane Harden, Steve Lang The couple will celebrate their honeymoon on a Eric Sabatucci, Ray Sargent, Kim Van Royen 35 Years: Daniel Fetzer Caribbean Cruise and will reside in Tulsa. 8 Years: Kent Ainsworth, Sherry Bulot, Brenda 36 Years: Ronnie Hargrove Caruthers, Alvin Dorn, Anthony Gill, Keith 37 Years: Timothy Wombacher the Dispatch PRST STD US POSTAGE The newsletter for Watco Companies, LLC and Watco Transportation Services, LLC PAID March 2012, Volume 13, Issue 3 PRADMAR CORP

315 W. Third Street Pittsburg, KS 66762 www.watcocompanies.com

Western Australia grain trains Climate Survey Update (Continued from page 1) technology and In 2010, Watco implemented a process to allow will deliver a great deal of value back to WA team members to provide feedback on our organi- growers.” zation’s work environment. On March 2, the Watco Western Aus- tralia Rail Team took the first train out to Purpose of survey be tested. In order to get accredited the The Climate Survey is a 20-question survey that officer of rail safety requires that all wagons requests information from all Team Members about be tested prior to ensure the safety of the Watco’s work environment, Customer satisfaction, design and structure from a drivers stand- teamwork and team member job satisfaction and point. The WWAR Team conducted the morale. The survey is constructive and intended to testing on the rail owned by Brookfield Rail provide information to our Watco leaders so they that the WWAR will be operating on. Once can better serve their team, which will result in bet- the locomotives arrive in Australia they will ter service for both internal and external Customers. undergo the same type of testing. Testing wagons on Brookfield Rail on Under Orrong Road 1. Timing/participation The survey was recently distributed to all team members in December and January and the results have been analyzed. 82% of Watco Team Members participated in the survey process. The Human Re- sources Team will visit all locations by March 23rd to share the results and to receive feedback from the team members about how to continue to improve the work environment and subsequently the organi- zation’s performance. Encouragement to participate in feedback Please participate in the feedback process and help Watco to continuously improve. The people who Top: Testing wagons on Brookfield Rail on Under Orrong Top: WWAR Team readies the wagons for a test run. Bot- know best how to improve Watco’s performance are Road 2. Bottom photo: the locomotive prepares to leave tom: the new CBH wagon is placed on a semi trailer to be those closest to our Customers, performing their Boise enroute to the East Coast. delivered for completion. jobs each and every day. All team member feedback is invaluable and our future success depends on continually improving and engaging every member of the Watco Team. Overall Process • Survey was distributed in Dec and Jan • Results are analyzed • 82% of people responded • HR team is conducting feedback sessions at each location from now to March 23rd • We will use the feedback to develop plans to improve the work environment