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theDispatch The newsletter for Watco 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, Idaho, 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.

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