theDispatch The newsletter for Companies, LLC and Watco Transportation Services, LLC April 2012, Volume 13, Issue 4

Watco’s WA Rail has a “good day mate” with its first Australian grain train theDispatch page 2 WWAR operates first train from Kwinana by Tracie VanBecelaere CBH/Watco train pull out heading up country to col- wagons, a good crowd was here and I took people up Managing Editor lect grain to bring back to the Port. The site of the 50 top of cells to get photos and there were more people bright shiny new CBH wagons was fantastic and will up there including farmer and bin rep Andrew Crook. mer F When most of the Watco only be surpassed when the wagons are being pulled We were all like kids at the royal show, it was excit- sto irs Team was snuggled in by our own loco’s. ing. I actually loaded the first wagon and I could have u t! C their beds dreaming “At the time the wagons rolled past me my thoughts done it blindfolded, we had 50 wagons and we did Listen of carloads, repairs, went back to a time some two years ago when we were about 30 in an hour or so. A brief report, but by gee, Understand switches and oppor- all travelling around the WA countryside showing, we should be all proud as it went pretty bloody good. Grow tunities - a special Watco, a perspective U.S. based rail provider, our op- One last thing, we had three chutes loading and the group on the other erations. Now it is a reality and I can’t help feel a little Watco drivers did a brilliant job moving the wagons side of the globe was blown away by it all.” thru at the right pace, many say it’s the best they’ve W 3 a 8 t 9 wide awake and getting The first train’s length of 50 wagons will be in- seen it done. Cheers.” c 1 o t. Co es ready to send off the creased by 20 each week as new wagons are released The inaugural trip was a successful one with the mpanies · very first Watco Western into service by Bradken, the wagon producer. Within train arriving one hour early back at Kwinana Port Australia train. On March ten days they will be operating six days a week and with wagons loaded. The grain was dropped from the 30, 2012, Watco WA Rail and CBH Team Members within another three weeks they should start opera- wagons in a short 90 minutes. The total trip time was gathered together as they sent their first train from the tion of a second train which will be powered by ad- 21 hours from start to finish which beat the projected ditional leased motive power. targets set initially by a very comfortable margin. Colin Tutt, CBH general manager op- erations, said, “I would like to say thanks to the entire Watco team from Pittsburg (Kan.) and Downunder for their efforts in getting our first locomotive loaded and unloaded successfully. It’s been an exciting 24 hours as we actually com- menced our transition from QR Rail to Watco operations, it will be a moment of history for both Companies. “There has been an enormous amount of work by many people in getting this milestone delivered and the impact on morale has been incredible. I think more photos were taken of this train yes- terday than I took all of last year, there was some real excitement from Perth to Merredin. The first Watco WA train prepares to begin its journey as many “I have even had calls from growers The first Watco WA train of 50 wagons takes off on its early team members gather to shoot pictures and view the historic travelling along the eastern highways morning journey to Merredin. event. saying they actually saw the wagons with a CBH logo printed on them and they were all Rick Webb, Watco CEO said, “It has been an excit- Kwinana Port to Herne Hill (Merredin). proud of what is being delivered.” ing, sometimes challenging, task to put the Watco Locomotives leading the train are leased from the Brian Jones with CBH shares this story, “Here is a WA Team in a position to be ready to serve our great Chicago Freight Car Leasing Company in Australia black and gold report of the loading of our first train Customer, CBH. So it was very gratifying to see the and will be in the operating fleet for six months while in Merredin. I was told it was arriving at 1 p.m. so first train for CBH run on time, without incident, the new MP33C locomotives are being manufactured I headed west and followed it in from Doodlakine meeting all CBH’s expectations. Congratulations to by Motive Power in Boise, , and make the jour- to Merredin and it looked hot going along the track. Jim Griffiths, Brian Boutwell and the rest of the Watco ney across the ocean. At Merredin we could not load as we had to wait for WA Team for achieving this important milestone. We Steve Martin, CBH Senior Category Manager- ARG to pull out our drift of wagons we just loaded to look forward to moving every train for CBH on time Operations, said, “At 6:00 a.m. Perth time I was lucky Kwinana. While waiting, many photos were taken and and accurately just like our first train for many years enough to be on site at Kwinana to witness the first many stories were going around (all good) about the to come.”

Robert Campbell, Steve Young and Darren Macauley, Left to right: CBH’s Owen Davis, Watco WA’s Lisa Wil- Jim Griffiths, Watco WA, chief operating officer, watches Watco WA train drivers prepare to drive the first train liamson and CBH’s Christy McMiles wait in the cab of as the fruits of his labor breeze by at 106 kmh as the first enroute to Merredin from Kwinana. the locomotive to drive the first train to Merredin. Watco WA train heads to pick up it’s first grain shipment. theDispatch page 3 Walter Coke stokes up business with the ABWR by Tracie VanBecelaere and the transportation and handling of coal. again. Managing Editor Less traffic means the roads will be safer, less con- “Jesse Lambert, ABWR trainmaster, and Matt gested and suffer less wear and tear, saving the taxpay- Gibbs, ABWR yardmaster, have both played a major Many business decisions are made based only on ers dollars at a time when the government budgets role in coordinating the inbound and outbound rail how they will financially benefit the company. How- are stretched thin. The move will also save in fuel moves,” said Slasinski. “They and the ABWR Team ever, when Walter Energy recently made the switch consumption as a freight train moves a ton of freight are the reasons that this move is working out so well. from trucks to trains to transport coal from Walter’s an average of 484 miles on a single gallon of fuel. Everything’s been rolling along smoothly under Jesse’s Tuscaloosa County mines to North Birmingham, be- There was a lot of legwork that went into making leadership.” ing a good neighbor was the key factor in the decision the environmentally friendly move a reality. The Ala- Because the move has been going so well, there’s making. bama Warrior Railway (ABWR) Team, the CSX and additional opportunities to bring in more coal from “Taking 10,000 Walter Coke worked together to make the changes other CSX rail served locations, giving Walter Coke trucks a year necessary to deliver the coal trains to Walter Coke’s more flexibility in the coal they can buy to blend off the road in a facility. The CSX is the Class I partner who hands off for their coke product. This allows Walter to stay as residential neigh- the cars to the ABWR so it was important that they competitive as possible and really drives home the borhood benefits understood the impact of the decision. Not only did Customer First Foundation Principles. the community as they buy into the new business opportunity, they as- Campbell said, “Overall, it’s a win-win for everyone. a whole,” said Mike sisted by rehabbing approximately 2,100 feet of branch Most important is the community and their safety, Campbell, Walter line track off of the branch line for use as an inter- but it’s been good decision for us and the railroads as Coke’s transporta- change site. well.” tion manager. Christopher Slasinski, ABWR general manager, Benefits from said, “This is the first time since the Alabama Warrior the move to rail has been with Walter Coke that we have worked with include improved the CSX and they’ve been great to work with.” air quality and Every Friday the unit train called the Blue Creek less traffic on the Train consisting of about 50-60 coal cars is brought Anthony Hoyte and Byron Her- region’s roadways. into the facility. During the week the ABWR collects ron of the Alabama Warrior, get The action has empty cars as they run through Walter’s coal dump. ready to move a coal train. the positive effect They place the empties on the CSX interchange tracks of avoiding more so when Friday arrives the train is 85% built. One or than a half million two switches are made and the train is ready by Friday pounds per year of CO2 emissions and more than afternoon. CSX pulls the train early Saturday morn- 50,000 pounds per year of particulate matter that oth- ing and has it back on the ABWR by Sunday night. An ABWR coal train with the mountain of coal in the erwise would have been created by both truck exhaust ABWR weighs the train and the process starts all over background to the right. Ride-along highlights safety issues from a different view by Tracie VanBecelaere disobeyed warning devices, or trespassed on railroad Managing Editor property. At one crossing in particular, participants observed a passenger motorcoach bus parked curbside The best way to understand someone’s point of view over the crossing stop line. The bus was being struck is to take a walk in their shoes. The Wisconsin & multiple times by the railroad crossing gate as it con- Southern Railroad (WSOR) recently teamed up with tinually tried to deploy itself but was unable to do so Operation Lifesaver to show railroad safety from the because of the location of the bus. locomotive engineer’s perspective. Jeff Plale, Madi- Wisconsin Operation Lifesaver Coordinator Susie son, Wisc., Railroad Commissioner, Susie Klinger, Klinger stated, “The behaviors of the general public State Coordinator of Wisconsin Operation Lifesaver on or around these railroad tracks near downtown and Brady Headington, a local reporter from WMTV Madison are appalling to (Continued on page 6) Channel 15 boarded a WSOR freight train for an exclusive view from the locomotive cab. The train was en route between Middleton, Wisc., and Madison, Observers in the locomotive cab view a passenger mo- Wisc., and participants torcoach bus parked over the stop line as it is repeatedly struck by the railroad crossing gate. were given a oppor- tunity to observe the noon of March 12, WSOR trainmaster Matthew Koser dangerous behaviors held a safety briefing with all participants, explain- of vehicular drivers, ing the proper safety behaviors on and around the pedestrians and cyclists rail equipment. All participants were provided with in relation to railroad proper personal protective equipment for the trip. tracks and crossings. “The purpose of this trip is to observe the behav- Prior to departing iors of pedestrians, bicyclists and motorists at various Middleton on the after- railroad crossings and along railroad property in and around the near downtown Madison and Univer- A pedestrian is caught trespassing on the tracks sity Campus areas,” stated Koser as he addressed the Another example of a violation that was witnessed dur- adjacent to the freight group. ing the ride-along. If the SUV would’ve stalled on the train during the WSOR While on the trip, the group observed numerous tracks there would not have been enough time for the ride-along. “near misses” when vehicles and pedestrians either train to stop. theDispatch page 4 Wallula Switching Team five years injury free by Ted Kadau management team catered in barbecue for the Wallula “Even during busy times when we were short-hand- Great Northwest Railroad and Palouse River & team on March 1. ed, everyone pulled through. I am just very happy to Coulee City Railroad Marketing Manager “I am very proud of the Wallula Boise team for be a part of a great team,” he said. accomplishing five years of injury free service,” Rob Thrall noted that as carloads handled at Wallula Watco’s Wallula, Wash., Team makes it their mis- Thrall, vice president of operations for Watco’s West have increased, the Watco team has kept their eye on sion to uphold the Foundation Principals of Improved Region, said. “Any successful safety plan is accom- the ball, ensuring they kept safety in the forefront of Customer Satisfaction by providing excellent service plished with great leadership and an entire team that every switch move and every repaired section of rail. each and every day to Watco’s oldest Customer - thinks, lives and leads SAFETY every second of every “Even as carloads and switching moves increased, Boise, Inc. But in March, the Wallula crew recognized day. Five consecutive years of zero reportable personal our Wallula Boise Team managed the higher corre- a colossal milestone in their mission to also operate injuries is an amazing accomplishment and one that sponding risk successfully, reporting no injuries and safety – celebrating five years of injury free service to every team member should be very proud of.” reduced incidents, which is an accomplishment few, Boise. The Wallula Team provides internal railcar switch- if any, railroad or switching location nationwide can In celebration of the event, Watco’s West Region ing and track repair services to Boise’s boast of,” he said. “The Wallula Boise Team is without paper mill at Wallula. Watco began a doubt the best in the industry and its numbers prove servicing the mill in 1987, and today this every day. This team has shown that our safety provides 16-20 hour-per-day service vision is achievable and continues to be the priority to the mill, interchanging cars from each and every day.” the Burlington Northern & Santa Fe The Wallula team takes a common sense approach and and then to safety – focusing on areas that can cause problems, spotting them at a variety of docks and then working to remain mindful every day that and other locations within the mill. the ultimate goal is to send all team members home “I just want to thank everyone for safely to their families. pulling through as a team and work- And, Jerry Carter, director of operations for Watco’s ing together on servicing the Custom- West Region, said he is looking forward to many more er safely,” Jose Romero, Site Manager injury free years of outstanding safety and service at at the Wallula switching operation, Wallula. said. “This is a huge milestone that could not have been Romero noted that Boise’s busi- accomplished without the entire team,” Carter said. ness at Wallula has grown and that “This Wallula Team has embraced safety and created his team has continually stepped up a safety culture that’s top notch. I just want to thank Top row, left to right: Jeff Hall, Carl Fuchs, Keith Reed and Andrew Brown. to face the challenges of that growth each and every one of them for their dedication and Bottom row, left to right: Jody Hyndshaw, Jeff Hart, Luis Mendoza, Jake – and they have done so with a focus hard work to reach this monumental goal. And, I look McChesney, Amanda Santana, Jose Romero, Jeff Edmondson and Ted on keeping their Customer satisfied forward many more years of injury free service to Kadau safety. Boise at Wallula.”

My CPR Assist lifesaving tool introduced to Pittsburg Team by Tracie VanBecelaere Assist, turned his training in quality control for Coca-Cola and Planter’s Peanuts, Managing Editor his experience as a certified Red Cross trainer, and his personal commitment as the primary caregiver to his ailing wife into a CPR device that can save lives. Each year, about 1.2 million people in the United States have heart attacks, and Wood has always had a strong community conscience, so when his wife many of them don’t survive. More people could survive or recover better from became ill and he began his journey as the primary caregiver, he leveraged his heart attacks if they got help faster. Of the people who die from heart attacks, new knowledge of CPR to train others as a certified about half die within an hour of the first symptoms and before they reach the CPR instructor. Shortly afterwards he founded an hospital. The statistics are sobering and something that former railroader and educational program for senior citizens call Heart entrepreneur Paul Jones is trying to do something about. Smart. He continued to learn with his active work Jones visited Watco’s Pittsburg, Kan., offices last month to introduce team on research with the Arizona University on specifica- members to a new device, the My CPR Assist, which is hoped to help heart tions and emergency methods. Through this work, attack victims. Each year, thousands of peo- he began assessing many CPR methods as to cost. He ple take CPR training but one of the hard- became passionate about finding a way to provide a est parts of the training is knowing how low cost assist unit to people in the field. From this hard and fast to do the compressions. My passion, came My CPR Assist. Wood has successfully CPR Assist is a simple tool that provides tested the depth and timing of the unit on medical users with sound validation that they are A front and training devises to confirm that the trainer provides side view of the working at optimum depth and speed when appropriate positive validation of proper CPR. performing CPR. Together the depth and My CPR Assist device. The Pittsburg Team viewed a video on the use of the speed ensure that enough blood is moving device and each team member was given one of the through the body to provide oxygen until devices following the presentation. My CPR Assist units will be distrib- help arrives. uted to all Watco locations shortly. How does one go about inventing a CPR For more information on the My CPR Assist you can visit the web site tool? Harrill Wood, inventor of My CPR at www. mycprassist.com. theDispatch page 5

Student shadows Baton Rouge Southern Railroad by Tracie VanBecelaere As always, a safety briefing was the first order of pany was visiting the location at the same time and Managing Editor business as Maney was taught the procedures that also helped in teaching Maney a few things about the team must follow each and every day. Maney the business. He visited with Maney about the tank Recently a not-so-mysterious shadow was lurking was shown the office work necessary to operate a cars and explained why the decals were placed on about at the Baton Rouge Southern Railroad (BRS). railroad and then safety equipment was passed out the side of the cars and what they mean. Fourteen year-old Alvin E. Maney III visited the rail- and the young man headed out to the railyard for When it came time to move the railcars, Maney road as part of a school job shadowing assignment. some outdoor instruction. did have to watch the cars being switched in the yard Maney’s dad, Alvin E. Many Jr. is a conductor for Customer Brice Dorgan of Union Tank Car Com- from inside the truck. He was still able to get a good the BRS and arranged for his son to visit the railroad understanding of what goes on at the railroad, some and see what goes on during a typical day. of the terminology and the safety issues that the team faces each day at work. Below: BRS Customer Brice Dorgan (right), Union Tank Alvin Maney Jr. said, “It was a good thing that he Car Co., shows Alvin E. Maney III (left) what the mark- got to come to work and see what his father does ings on the tank cars mean. Right photo (l-r): Yardmas- each day. It may be something that one day he de- ter Roderick Gardner, engineer Richard Ryder, Alvin E. cides he wants to do and now knows more about it Maney III, and conductor Alvin E. Maney Jr. and what goes on here. “He said he really enjoyed the time he spent here and that he learned a lot. He got to learn about the things we do here and how we switch cars in and out for the our Customers at the Baton Rouge.” Although the young man has a few years to decide what he wants to do when he gets out of school, we can hope the experience has lit the fire in a new generation and that he will follow the footsteps of many past railroaders as they made working on the railroad a family tradition. Maney is an eighth grader at Southside Jr. High School in Denham Springs, La. He plays on the jr. high football and basketball teams and runs track and long jumps. Watco Team Members receive Customer kudos by Tracie VanBecelaere ner DeLafosse was again approached about the plant Wayne Ghan, Kaw River Managing Editor manager. PPG’s Julie Bart echoed the same com- Railroad (KAW) train- ments made by Fucich and added that the manager’s master is the team mem- When you think about Kansas City and Texas, the hand written notes and personalized Christmas card ber that Miller is talking amazing barbecue heritage they are both known shows the extra effort he puts into the Customer about. for often comes to mind. Although not as famous as relationship. He shared Wayne has Jack Stack or Oklahoma Joe’s, the Customer service DeLafosse said, “I have heard good comments done a great job working provided by Watco team members is gaining notori- about many people in this industry over my years but with his team in efforts ety as well. there were none better than what I heard about Greg to eliminate water dam- While attending Chlorine Institute meetings in Al- and the Watco Hockley repair shop. It makes all of us aged wheel sets due to tanta, Ga., Tom DeLafosse, Watco’s vice president of look good and feel proud of the first rate Customer their industry siding. He compliance services, was hunted down at the meet- Service they are providing. I just want to thank them understands rain can hit ing just to be informed of the great service provided for doing the job they’re doing because the Cus- at any time of the day or by the Hockley, Texas, plant manager, Greg Andersen tomer, as well as their vendor, sure have noticed your night creating a poten- Wayne Ghan, Kaw River and his team. actions, and isn’t afraid to spread the word!” tially negative situation Railroad trainmaster. Descote’s Mark Fucich was at the shop working Move further north and you’ll hear the same type for Temple, but appreci- on some next generation valve issues and was so of story from Temple Inlands Bryan Miller in Kansas ates Wayne’s time in working with his team. impressed that he took the time to search DeLafosse City. In this story though the names have changed. Joe Weigel with Advantage Metals Recycling in out to tell him his Kansas City also had some kind words regarding the thoughts. KAW Team. Weigel sent the following e-mail mes- DeLafosse said, “He sage to the team. really couldn’t say “I want to thank all of you for the efforts put forth enough nice things in January to help start our year out with a record about Greg, his man- month. You always find a way to meet the task at agement style, and his hand that we ask for on short notices. You have a shop. He has been ask- great team here in Kansas City.” ing everyone at these The fact that our Customers take the time to let us meetings ‘why are you know when team members are following our Cus- not using the Watco tomer First Foundation Principles is a testament to Hockley shop?’ ” Greg Andersen, Hockley, Texas, plant manager said, “It’s not one person that drives the kind of Customers that we are lucky enough to That evening at din- safety, quality, and Customer satisfaction at Hockley, it’s a group effort.” get to do business with every day. theDispatch page 6

Watco Team goes to D.C. for Railroad Day on Capitol Hill by Tracie VanBecelaere sponsors. He has fought to get the tax credit in moving In addition to LaHood, notables at the dinner includ- Managing Editor legislation and vows to continue to do so. Rockefeller ed Joe Szabo, Administrator of the Federal Railroad has represented West Virginia in the Senate since 1985 Administration; Dan Elliott, chair of the Surface As a little girl growing up in West Virgina, Amy and is currently the Chairman of the Senate Com- Transportation Board; Members of Congress and Parady, Watco’s vice president of marketing and sales merce, Science and Transportation Committee with their personal staff; and principals of rail labor unions. for the Gulf Region, spent many jurisdiction over rail issues. Rockefell- ASLRRA President Rich Timmons and Board Vice- Christmases visiting the home of Jay er is also the second ranking Democrat Chair Ed McKechnie, Watco EVP-CCO, presided Rockefeller. Rockefeller at the time was on the Senate Finance Committee over the dinner along with Association of American Governor of West Virginia and Parady, which has jurisdiction over tax issues. Railroads Vice-President Patty Reilly, who represented along with her family, took the an- More than 400 railroad industry AAR President Ed Hamberger nual Christmas tour of the Governor’s participants took part in 345 sched- Twelve Watco team members participated in the mansion. uled meetings on Capitol Hill to advo- event to advocate for our short lines. Participants Rockefeller has since been elected cate for the freight rail industry. These included Parady; Adam Inselbuch, EVP-CFO; Craig to State Senator and Parady had an meetings helped bring the support for Richey, EVP-general counsel; Doug Story, director opportunity to once again visit her the short line tax credit to 250 cospon- grain marketing; Jeff Smith, marketing manager; Ken “old family friend” during Railroad sors in the House and 46 cosponsors in Lucht, VP, government affairs; Kirk Hawley, SVP Day on Capitol Hill on March 8. A the Senate. marketing, sales and service assurance; Shasta Stump, special event was held following the Gulf Region Vice President An address by U.S. Secretary of VP marketing and sales East Region, Tim Karp, VP day’s meetings for Senator Rockefeller of Marketing and Sales Amy Transportation Ray LaHood capped finance; Tom Hayes, associate general counsel; Tracie who has been a good friend to the Parady greets West Virginia the Railroad Day On Capitol Hill VanBecelaere, director of communications; and short line industry. West Virginia even Senator Jay Rockefeller event. McKechnie. purchased its own short line railroad LaHood made his remarks as the Another generation of the Watco family attended during his tenure as Governor. inaugural speaker of the legislative the event as well. James Richey, Trenton Stump, Senator Rockefeller is the lead sponsor of the effort dinner held the evening of Railroad Day. He wel- Joshua Hayes, Garrett VanBecelaere and Austin McK- to extend the 45G short line railroad infrastructure tax comed those in attendance to Washington and noted echnie attended the meetings with their parents to credit. His leadership has secured 46 Senators as co- the importance of railroads to the American economy. learn more about our government. Ride-along Locomotive Team celebrates milestone by Tracie VanBecelaere but three years injury and incident free is a great highlights Managing Editor accomplishment for us. Performing the tasks we do everyday and dealing with extreme heat here in the Everything’s big in Texas - especially the safety Gulf Coast is something to be very proud of. I am safety issues record of the Houston Locomotive Team. The group very proud of every member of this team for over- recently celebrated hitting the three year incident and coming the hurdles placed in front of us and still be- injury free mark. The foursome were presented with (Continued from page 3) say the least. On one trip, ing able to accomplish this milestone. They may be a over the 5.8 miles and 28 public railroad crossings, we Certificates of Achievement, gift cards and a special small group but their accomplishments are mighty!” seafood lunch to commemorate the milestone. observed over 150 violations from pedestrians and ve- The team is responsible for servicing, maintain- hicles alike. It would be in the best interest of all par- ties to work on a strategy to reduce the opportunity ing, and repairing 24 locomotives in Texas spread for tragedy before a devastating collision or trespasser out between Houston, Refugio and Dallas. They are incident occurs“. instrumental in providing our Customers with a safe, Graduation The WSOR will continue to bring light to this grow- operable way to move their railcars. ing problem in the communities, including working Ben Coward, chief mechanical officer, Houston, Announcements with the Commissioner’s office and Operation Life- said, “It may seem to be a small goal to many people Watco would like to acknowledge the hard work saver, to highlight the dangerous behaviors exhibited of all graduates from our families by listing them by commuters and trespassers along railroad corri- in May’s edition of The Dispatch. dors. If you would like to have your, or a graduate’s Ken Lucht, WSOR manager of community develop- information listed, send in the information in us- ment, said, “Ultimately, it is WSOR’s goal to educate ing the following example: Billy Doe: Son of John the public that the act of disobeying warning devices Doe, locomotive mechanic in Oklahoma City, and trespassing is very dangerous and their safety is OK; graduating from Oklahoma State University, our main concern.” Stillwater, Okla., with a Bachelor of Science in Ac- The ride-alongs are one of the most useful tools counting. in promoting railroad safety as they highlight issues Send your graduation information to: from a different perspective. In Idaho a program Tracie VanBecelaere, Watco Companies called Troopers on Trains has been successful in creat- 315 W. 3rd Street, Pittsburg, KS 66762 ing awareness for laws that promote rail safety. The or email them to: [email protected] troopers ride in the locomotive and when violations and add Dispatch-May Grad. in the subject line. occur the information is relayed to partners on the December graduations will be included with the ground who issue tickets. The purpose of the pro- The Houston Locomotive Team (l-r): Juan Ramirez, May graduations. gram isn’t to hand out tickets, it’s to create an aware- Wally Acosta, Evelyn Salas and Santiago Montoya. ness of safety issues that can be lifesaving. theDispatch page 7

AT C O April Anniversaries W Congratulations to the following team members Williamson celebrating their anniversaries! 6 Years: Jeffrey Allred, Shellee Currier, Timothy Dunn, Cody Gilliland, Gerardo Horta, 1 Year: Joshua Allphin, Justin Bachmeier, David Christopher Preuc, Grant Rasmussen, Ronald W Bader, Artrina Barber, Jose Bautista, Jimmie Thompson, David Tinnon O L D Binford, Karlis Binns, Kraig Blackwelder, Joshua 7 Years: Jerad Brunskill, Brandon Eddleman, R Briggs, Johnny Brown, John Conner, Henery Travis Fellers, Pat Foster, Brian Fox , Carl Hauk, This section is dedicated to the Watco Team Dannehl, Douglas Delehoy, Joseph Eiland, Michael Reifsnider, Justin Rhodes, Travis Tholen, Kieran Foster, Herico Garcia, Levi Gaze, Megan Tracie VanBecelaere, Patrick White, David members to give you a chance to share what’s Gwin, Axel Herrera, Brian Hickerson, David Wilczewski, David Witzack happening in your corner of the Watco World. Holt, Richard Hudson, Craig Kalk, Kris Kinsall, 8 Years: Jeffery Greenwood, Bertha Herrgesell, Hunter Lacaze, Richard Lee, Ocie McCutchen, Val Kahley, Dennis Meyer, Loren Parr George Monney, Tyler Neesam, Michael Nelson, 9 Years: Shane Engle, Judy Johnson, Keith Kitson, Births Benjamin Ott, Tim Page, Matthew Parker, Travis Martin Kenzley Grace Wilmoth Michael Patterson, Zachery Pittman, Dustin 10 Years: Brent Booth, Lisa Butts, Pat Cedeno, Joel and Shana Wilmoth Rhodes, Marty Robbins, Donald Robert, Hugo Jason Ebarb, Al Finn, John Galloway, Darren are proud to announce the Silva, Tyler Springman, Christa Steege, David McComic, Kenneth Sauter, Terry Towner birth of a daughter, Ken- Stimer, Thomas Stroud, Abel Tapia, Scott Teel, 11 Years: Shane Collins, Heather Huff zley Grace. Kenzley was Gerald Tjepkema 12 Years: Robert Heiligenthal, Jeanne Housel, born on February 20 and 2 Years: Hayley Becker, Randy Bennett, Reggie William Kyzer, Byron Marshall, Douglas weighed 7 lbs., 1 oz. and Blocker, William Casey, Shon Christensen, Travis Peterson, Ron Singleton was 20 1/2 inches long. Collins, Waylon Doyle, Bennie Ellison, Allen 13 Years: Darby Destromp, Paul Friedrichs, James Joel works as a clerk at Godfrey, John Grace, John Hargis, Antonio Walton the Port Birmingham Ter- Horacio, Anthony Hoyte, Houston Knight, 14 Years: Stacy Hurda minal in Fairfield, Ala. Kenzley Grace Wilmoth Robert Large, Alberto Martinez, Michael 15 Years: Anthony Ange, Brandy Etheridge, McBride, Jordan Merritt, Benjamin Nordloef, Jeremy Findley, David Jena, Roger Kitzmiller, Tyler Joseph Tapia Rachael Peterson, Jesus Ramirez, Derek Riese, Rick Vaughn Tyler Joseph Tapia was David Riley, Kevin Roth, Owen Schulz, Andrew 16 Years: Kenneth Barber born to Abel and Jennifer Smith, Luis Soto, Nicole Stevenson, James Sullins, 17 Years: Aaron Byle, Donald McCallum Tapia on March 21. He Paul Taylor, Roidino Trevino, Thomas Twichell 19 Years: Neal Jacobs weighed 8 lbs., 2 oz., and 3 Years: Angela Bunker, Joseph Grupczynski, Dee 20 Years: Larry Brasseale, Michael Hill was 20 inches long. Lautner, Billy Moore, Mark Moorlag, Michael 21 Years: Gary Cooley, Gary Sanderson Abel works at the Murphy, William Richmond, Troy Sickle, Samuel 23 Years: Dwight Browning, Joseph Lidwell Harwood, Texas, terminal Weeks 27 Years: Thomas Dawson location and has been with 4 Years: Drew Drewenski, Chad Easterling, 28 Years: Larry Bray, Harel Harrison, Larry Watco’s Terminal and Port Steven Everett, Tye Gray, Chris Haddow, Russell Thomas Services Team since April Hamm, Robert Hurda, Richard Knilans, Brian 29 Years: Anthony Decapio Tyler Joseph Tapia of 2011. Kovarik, Jason Lloyd, Joseph Magnone, Jose 30 Years: Larry Vail, Dion Wilkens Martinez, Steven Mottaz, Curtis Rice, Arnoldo 31 Years: James Bass Sandoval, Jeffery Smith 33 Years: Carl Leone If you have any news you would like published 5 Years: Joel Aguilar, Richard Brady, Joseph 34 Years: Robert Neal send your information to tvan@watcocompanies. Brooks, Tony Clark, Nickol Corr, Rebekah 35 Years: Donald Drobnoek, Walter Legette, Jack com. Weddings, births, community service, awards, Garner, Ray Green, Arthur Gurney, Joseph York and any other important event that you would like to Holcomb, Jared Koehn, Matt McKenzie, Anthony 37 Years: David Dial, Richard Duncan, Jerry York share with your fellow team members are acceptable. SKOL asset making tracks The South Kansas and Oklahoma Railroad’s (SKOL) track department recently acquired a new John Deere backhoe for the track department. This new asset will increase productivity with quick disconnect buckets, reduce down time and reduce weather eliminates for the operator. This tool helps to install ties by increasing productive with machinery, dumps ballast, cuts draining off the right away, supports the removal/installa- tion of road way panels, unloads/loads ties, removal/installation of track panels and many more actives supporting MOW tasks. The SKOL’s newly painted locomotives. The new paint has decreased clean up time as well as invoked positive feedback from local government agencies and housekeeping by our operating team members. “We’d like to thank the senior leadership team for the confidence they SKOL’s Owasso MOW, locomotive team and support staff (r-l): Michael Stotts, Bill Miller, Da- have in us is fund special projects like this,” said SKOL General Manager kota Booth, Dave Daniels, Tim Eccels, Mindy VanBuren, Mike Hainds, Brad Peck, Jerry Pierce, Chad Jasmin. Raymond Bowen and Theron Pope PRST STD the US POSTAGE Dispatch PAID The newsletter for Watco Companies, LLC and Watco Transportation Services, LLC PRADMAR CORP April 2012, Volume 13, Issue 4

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

Bakken Shale puts Canada on Watco map by Tracie VanBecelaere companies to off-load railcars. ducted to off-load frac sand from railcar to truck and Managing Editor The facility is already growing at a fast pace. in then trucked south to the United States. This was also February Bienfait was introduced to petroleum crude a great success and more shipments have followed. Thanks to the Bakken Shale Formation Watco now oil transloading. They received a call from CN on a Presently at the site Watco has two Wilson 24” belt has a locomotive chugging along in Canada. Watco Monday asking how long it would take to gear up for conveyors, a 9,000 lb. forklift, a dock and ramp, and recently started a new business venture with the Ca- loading crude oil into railcars on Saturday of the same nadian National Railroad (CN) in Bienfait, Saskatch- week they loaded their first crude cars. They added ewan. The facility is a terminal facility that performs in a transload unit at the facility as a test and after a variety of services for the CN, all related to the three days of successful testing, Bienfait is also now a Bakken shale. Hazmat facility. The unit, an oil gantry, is a machine The Watco locomotive at the Bienfait facility is used that “proves the oil specs”. It corrects the volume to for switching sand, pipe, and crude oil tank cars. Wat- 15 degrees, gives water cuts, temperature of oil, net co also performs switching for third party contractors volumes on both water and oil, time off loading and at the site. The Watco Team transloads crude oil from the density of the oil to calculate the weights for the truck to railcar, frac sand from railcar to truck and railcars. It is either top loading the oil to the cars both bulk hopper sand and tote sand bags. (this is the procedure at Bienfait) or bottom loading Watco’s experience in transloading drilling supplies railcars. This gives a print out of the oil specs to send and products is a benefit as Bienfait is approximately to all parties concerned. They have stairs to allow 11 km from the City of Estevan which is a major operators to access the tops of the railcars and they The sun sets on a railcar at the loading dock at the Bien- center for the oil and gas industry. The Estevan area is are equiped with a stinger (pipe) that top loads the car fait, Saskatchewan, terminal. part of the Bakken Field. with product. Allan Roach, Watco’s senior vice president of busi- The location, access, and better turnaround time, two transloading oil gantries. The siding has room for ness development, said, “This was a long time in the prompted CN to place a second oil gantry on loca- 24-25 railcars and the locomotive. It also features a making. We initiated discussions with CN over a year tion and they are loading approximately six to eight three-car concrete and gravel loading dock. in advance of the startup to convince them to give us a railcars per day of Bakken crude oil. At this time Bienfait location is operated by five shot at this. We had many meetings with CN to build Schlumberger, one of the world’s largest oilfield team members. Lotus Villaneuva and Mark Aiken- their trust and to build our relationship. And that was services companies, began receiving frac sand at the head are operators, Bill Joe Beardy and Ryan Wilson all before we even started working on the contract. Bienfait facility in March. A 10 truck test was con- are engineer/operators, Maryam Nooh serves as Cus- “Our WTPS (Watco Terminal and Port Services) tomer service representative and Thomas Sharp holds experience as a recognized leader in the Crude By the position of terminal manager. Sharp was brought Rail segment of the industry made it an easy sell and on board in December to manage the facility. He had is a testimony to the great job that everyone at WTPS a previous relationship with CN Cargoflo, transload- does for Watco. Both Phil Penner, SVP business ing crude oil from truck to railcar at the CN Willmar, development and Sam Ricci, Director of Operations, Saskatchewan site. Midwest Region, have been instrumental in the plan- With the increase in commodities being handled at ning, start-up and success of the new site.” the terminal and the opportunities to bring in addi- Bienfait’s transload facility is at an ideal location tional commodities, the facility is looking to expand in Southern Saskatchewan. The facility intersects the staff. two major highways, Hwy 39 and Hwy 18. Hwy 39 “The addition of team members will enable us to is a major highway connecting the United States to continue to provide the best service to our new Cana- Canada, and features a 24-hour border crossing, giv- Two oil gantry’s are on site at the Bienfait, Saskatchewan, dian Customer,” said Sharp. “We are excited to spread ing the Bienfait location easy access to major trucking terminal. the Watco Customer First! principles internationally.”