theDispatch The newsletter for Watco Companies, LLC and Watco Transportation Services, LLC October 2013, Volume 14, Issue10 Dedication of the 1023 Steam Engine OctoberCarona, 12 - Carona Kansas Depot theDispatch page 2 October 2013 Watco Senior Vice President, Gary Vaughn, makes history by Travis Herod be held not by an officer of a Class 1 railroad, but a very high level of teamwork between the Class 1, Director of Safety by a member who has spent the last several decades short line, and passenger railroads who have adopt- working tirelessly on behalf of the short line indus- ed the General Code of Operating Rules. On October 18, 2013, in Jacksonville Florida, try. While the interests of short line railroads and Since coming to Watco in 2003, Gary has been history was made at a meeting of the General Code Watco have been well represented by Gary and other continuously driven to ensure that short line rail- of Operating Rules short line committee members, having a chairman roads are as safe and efficient as possible, and his Committee. It was elected from the ranks of the short line industry is efforts have continuously led to a higher level of vis- time again, to vote new a first in its long history, and a testament to how the ibility, both for Watco, and the short line Industry as officers to helm the com- industry has grown, not only in size, but also in vis- a whole. Through his work not only on the GCOR mittee that writes the ibility and recognition by the entire ral industry. Committee, and the numerous Rail Safety Advisory operating rules that gov- For the next three years, Gary will serve as chair- Committees he serves on, the short line industry has erns over 300 railroads man of the committee, working with the interests achieved a much higher level of respect, and atten- and holding companies of all GCOR railroads, to ensure the operating rules tion, by our Class I partners, as well as by those in who have adopted the we live by are clear, concise, necessary, and effec- Washington, when considering changes to not only General Code of Operat- tive. Throughout Gary's time as a member on the Operating Rules, but also in the regulatory environ- ing Rules (GCOR). In committee, he has helped protect the interests of the ment of Washington. This honor of being elected an unprecedented move, short line railroads who have adopted the General Chairman of the General Code Committee, contin- one of our own, Gary Code, while also helping to enact operating rules ues this trend, bringing greater visibility not only of Gary Vaughn, Watco's C. Vaughn, senior vice that are effective for all member railroads in this dy- Watco, but to the short line industry as a whole, and senior vice president of president of transporta- namic and ever changing industry. He will have his is an amazing achievement. transportation rules and tion rules and regula- work cut out for him, as during his tenure as chair- This is not the first time Gary has brought credit regulatory compliance. tory compliance, was man, the next version of the General Code, Version and recognition to Watco, he was also named as the voted Chairman of the 7, will be finalized and released to the industry. The 2010 American Shortline and Regional Railroad GCOR Committee. For the first time in the history leadership required in preparation for issuance of an Association’s Safety Professional of the Year, the of this committee, the position of chairman would entirely new book of Operating Rules will require inaugural year for that award. Port San Antonio’s East Kelly Railport Congressman Ryan on breaking logistics records rail industry visit Port San Antonio's East Kelly Railport is break- handling of unit trains (approximately 100 railcars at U.S. Congressman Paul Ryan, Wisconsin 1st ing logistics records, with a little help from Watco's a time with the same type of cargo). These additions District, recently visited Nordo – a manufacturer San Antonio Central Railroad (SAC) and the Eagle have grown the Railport’s capacity four-fold—from of railroad maintenance of way equipment and Ford Shale play. Railport Manager German Rico 5,000 railcars a year before expansion to a current rail inspection services and technologies based stated that for fiscal year 2012 the SAC moved 5,167 limit of up to 20,000 railcars a year. out of Oak Creek, Wisc. While at Nordco’s Oak railcars and that number is expected to reach ap- The San Antonio Central Railroad, brings railcars Creek Headquarters, Congressman Ryan at- proximately 10,000 from Union Pacific Railroad and BNSF Railway tended a briefing from Norco executives followed railcars by the end trains outside the Railport and delivers them to by a tour of the facility. The visit showcased the of 2013. Customers’ property within the Railport. Nordco headquarters and maintenance-of-way About two-thirds “The San Antonio Central Railroad has been a facility and highlighted the importance of the rail of the volume is success story for 2013, nearly doubling its rail vol- contractor and supplier industry. frac sand which umes year over year. I credit our fantastic Custom- Representatives of the Canadian National Rail- arrives by train and ers and first class operations team for our success," way and Wisconsin and Southern Railroad were is transloaded onto said Ryan Williams, Watco marketing manager. also present to discuss the continued challenges trucks for delivery "Raul, Mike, Jeff and Mario from our Operations facing our nation’s railroad infrastructure. The Pictured (l-r): German Rico, to oil and gas well team along with Tina and Felicia from our Cus- event was hosted by the National Railroad Con- General Manager East Kelly sites throughout tomer Service struction and Maintenance Association (NRC). Railport, Port San Antonio; the Eagle Ford team have Lupe Salinas, Director of Busi- Shale region. done an out- ness Development, RLI; Loy Garcia, President, RLI; and “Success at East standing job Ryan Williams, Watco Market- Kelly Railport is working with ing Manager. the result of having and finding the right location at creative solu- the right time and working with the right partners tions for our to capture market opportunities,” said Rico. “When Customers. the Railport was launched a few years ago, we saw It’s amazing to Pictured (l-r): Ryan Williams, Watco steady, moderate growth. Eagle Ford has been a think this is Marketing Manager; Caroline Diaz, game-changer and provides logistics firms at the only the start. Executive Assistant Port San Anto- Railport a strong future.” I’m looking nio; Celia Gonzalez, Railport Opera- Watco and the SAC has played an essential role forward for tions Coordinator Port San Antonio; in the Railport’s growth. Starting in 2012, Watco what’s to come Raul Ramos, General Manager San Antonio Central Railroad; and Ger- Pictured is Congressman Ryan accompanied by a doubled track at East Kelly from four to eight miles, in 2014 – stay man Rico, General Manager East brand new Spike Pulling Machine manufactured by including a recently completed spur that allows the tuned!” Kelly Railport, Port San Antonio. Nordco. theDispatch page 3 October 2013 success and growth of our company does not de- pend so much on the strength, talent, and quality of our managers as it does on the strength, quality, and the crossing talent of our front line team members who supply a where learning meets leadership service to our Customers. “The TS&IC helps us make sure that we are doing what we say we will do to support and serve the Upcoming Watco U Courses: “front line” team members who support and serve 101 October 8-10 our Customers,” said Webb. 201 October 15-17 He added that he envisions the role and function One responsibility of the TS&IC is finding community of these groups to grow and evolve as the company RAIL Course of the Month: service projects to get involved in. Team members on expands, and as the needs of our Customers change. “Leading Innovation” the WTPS Stroud Team collected donations for the lo- In a recent interview, Watco’s CEO explained that cal firefighters last year. Pictured are (l-r): Marty Rob- as important as social and community events are Watco University Completions bins, Joel Reeder, Jeremy Shepard, Craig Long, Jason in improving location morale, and as focused as we 101 - Jennifer Beattie, human resource manager, Moore, Chet Ackerman, and Tommy Dervin. should all be on company safety, the TS&IC needs to Corp., Petersburg, MI; Heath Covey, trainmaster, expand its role in assisting managers to support and SKOL, Cherryvale, KS; Claude Childers, general the answer to many questions and problems. The serve their internal and external Customers. Manag- manager, TIBR, Silsbee, TX; Jose Saavedra, Supervi- TS&IC is not just charged with finding problems ers should use these groups to stay in touch with the sor, Mech., Hockley, TX; Ruben Rodriguez, supervi- at its location. Instead, the group’s members and needs of their internal and external Customers. sor, mech., Coffeyville, KS; Troy Sickle, corporate leader are charged with discovering creative and In addition to serving managers and Customers, mechanic, WTS, Houston, TX. innovative solutions to problems that are identified the TS&IC also helps support Watco’s “promote 201 - Terri Klapperich, Customer service man- at their location. The TS&IC leader then meets with from within” policy. By training TS&IC leaders in ager, WSOR, Milwaukee, WI; Tom DeLafosse, VP the manager on a monthly basis to offer and discuss the Watco way of leadership and management, the of compliance,Corp., Pittsburg, KS; James Sullins, those solutions.