The newsletter for Watco Companies August 2018, Volume 19, Issue 8 Watco and PCA celebrate a 35-year partnership by Tracie VanBecelaere It was a great experience," Herman said. "I came Managing Editor down here to get some experience and then get a real job and I've never left. No matter how big we Watco Companies and Packing Corporation of get, no matter how many things we have, we had to America (PCA) have one of the most unique con- have a place to start and you carry that here." tracts in the industry; a 30-day contract that has Although Kaye Lynne Webb's name was on the been renewed approximately 420 times. A copy bank papers to purchase the first locomotive at of this special contact was recently presented to DeRidder, she wasn't able to make it down that first PCA at a celebration of the 35-year partnership day due to the birth of her first grandchild. She did between the two companies in DeRidder, Loui- make it down for the 35th though. siana, on July 26th. Originally, the contract was "I'm in still in awe of what Watco was in the be- signed by Boise Southern, who was later pur- ginning and what it is now," said Kaye Lynne. "Dick chased by PCA. Webb was a people person and he was a pretty good Accepting the gift for PCA was Bruce Ridley, judge of character and those who he selected to start Watco's executive chairman Rick Webb presents vice president of environmental, health, safety, here did a pretty good job." PCA's Bruce Ridley, vice president of environmen- and supply chain. tal, health, safety, and supply chain, with a framed "I can never thank you all enough for giving us copy of the original 30-day contract signed by that opportunity 35 years ago," said Rick Webb, Boise Southern (now PCA) and Watco in 1983. Watco executive chairman and son of founder Dick Webb. "Just think of all the lives and the people you have touched in such a positive way." Ridely said, "We talk a lot about relationships and what drives Watco and why you do what you do, and PCA operates under those same rules. That's what has allowed us to grow together." Jim Herman was one of the early Team Mem- bers at the DeRidder switching location and still works for Watco today as the manager of the Pittsburg, Kansas, mechanical shop. Herman said, "This (DeRidder) is the founda- tion principles right here in practice. Before Dick Webb knew there was anything to write down, it was this principle. That's what the whole com- Some of the early Team Members who worked at pany is about." the DeRidder location were (l-r) Linn Herman, Jim "I've done about every different job there is Herman, Mark Blazer, Linda Blazer (worked for Several PCA employees joined Watco to cele- to do at Watco but I'll never forget starting here. Boise), Art Smith, and Keith LaCaze. brate the 35-year partnership that began in 1983. Watco rounds out Executive Leadership Team by Tracie VanBecelaere Leaders, in the support and development of the ed the purchase of full ownership of Greens Port Managing Editor Watco Team and its ability to serve Watco Cus- Industrial Park, now operating as Greens Port tomers. Industrial Terminals, the largest privately-owned The Watco Leadership Team roster has been As CEO, Smith will continue to provide the mulit-tenanted industrial terminal in the Gulf completed and there are some heavy hitters in the leadership, management, and vision necessary Coast market. The transportation division also line up. In early July, CEO Rick Webb took the to ensure that all divisions operate safely and expanded its rail service area to the Eastern U.S. position of executive chairman and Dan Smith efficiently to effectively attract and retain the with the addition of the Blue Ridge Southern filled the role of CEO. Rick Baden continues in best Team Members and continue to grow the in North Carolina, the Kanawha River in West his position as president and chief financial of- company. Smith joined the Watco Team in 2009 Virginia and Ohio, and the Jacksonville Terminal ficer and Craig Richey will also remain in his role and has held various leadership roles during his Railroad in Florida. as executive vice president and general counsel. tenure, most recently serving as chief operating Since Smith joined the Watco Team, he’s had Webb’s new role will be to continue to as- officer. Under Smith’s leadership, the terminal a strong focus on Team Member development, sist Smith and Baden, as well as all other Watco division more than tripled in size. He spearhead- coaching, and orga- - Continued on page 2 Watco rounds out Executive Leadership Team, con't Continued from page 1 - nizational structure. Morgan terminal acquisitions and the start-up of a ness, and communications. She joined the Watco This focus has led Watco’s Operational Teams new Watco service offering in the Houston deep- Team in 2006 and has held several roles on the to record-setting safety performance, revenue water stevedoring operations. People Services Team, most recently serving as growth, and Team Member retention. Stefan Loeb has been with the Watco Team senior vice president of people services. Peterson In late July, new members were appointed to the since 2010 and held the positions of vice president was instrumental in the implementation of Watco Executive Team. Those leaders are Nick Coomes, of business development, senior vice president University, which focuses on the development of who will be serving as executive vice president of marketing and strategic development, execu- Team Members both professionally and person- and chief operating officer, Stefan Loeb has been tive vice president and chief marketing officer, ally. She has also headed multiple initiatives that named executive vice president and chief commer- and executive vice president - network strategies. have led to significant improvements in Team cial officer, Rachael Peterson takes on the role of As CCO, Loeb will focus on building and grow- Member retention. executive vice president and chief people officer ing strong Customer relationships and leading the In his role as CIO, McGuire will manage and lastly, Ed McGuire will serve as executive development of new commercial opportunities for Watco’s capital raising activities and oversee the vice president and chief investment officer. Watco. Loeb’s focus on relationships played a key deployment of capital in Customer growth proj- As COO, Coomes will be responsible for role in the acquisitions of the Wisconsin & South- ects and mergers and acquisition transactions. overseeing the day-to-day safe operations of the ern Railroad, Ann Arbor Railroad, Blue Ridge McGuire joined the Watco Team in July of 2015 transportation, terminal and port, and mechanical Southern Railroad, and the Birmingham Terminal as executive vice president – strategic planning. divisions. Coomes joined the Watco Team in Janu- Railway, which were the largest railroad purchases Since joining Watco, McGuire has been deeply ary of 2014 as vice president of operations sup- in Watco history. involved in numerous mergers and acquisitions port for Watco Terminal and Port Services. He has As CPO, Peterson will continue to champion and Customer growth capital transactions. He was most recently served as senior vice president of the Watco culture by leading various programs and instrumental in raising equity capital with SkyK- operations for Watco. Under Coomes’ leadership, functions that support Team Member engagement, night – Crowley and several debt financings with Watco saw the successful integration of the Kinder development, safe-performance, health and well- Watco’s banks. Rick Webb Dan Smith Rick Baden Craig Richey Nick Coomes Stefan Loeb Rachael Peterson Ed McGuire Executive Chairman Chief Executive Officer President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President & Chief Financial Officer & General Counsel & Chief Operating & Chief Commercial & Chief People Officer & Chief Investment Officer Officer Officer Peabody switching location begins operations by Tracie VanBecelaere for us to be here. We'd like to thank our Watco Managing Editor Go Teamers here for start-up and all of the great Watco Team Members from all across the country Nobody is more excited to see the start-up of who played a part in this opportunity." the Peabody switching operations than Watco's Peabody Energy is the world's largest private- vice president of business development Rob sector coal company and serves metallurgical and Thrall. thermal coal customers in more than 25 countries "It took a lot of dinners to get us in the door," on six continents. laughed Thrall, "but it was worth it." On August 1, 2018, the Watco Team began switching four of Peabody Energy's mines, the Rochello, North Antelope, Caballo, and Rawhide, in the Powder River Basin. Peabody Energy is the largest producer of coal in the area. A Wyoming coal train similar to the ones that the All of the mines are in the Wright/Gillette, Peabody Team will be handling in the northeast- Wyoming, area and the operations are similar to ern part of the state. what Watco is currently doing in the same area, as Black Thunder Switching. Most of the opera- tions consist of engineers running unit trains around a loop with BNSF or UP locomotives at 2 MPH or less as the trains are being loaded with coal. There are a total of 51 Team Members working at the location counting general manager Todd Top photo: Todd Hamilton is serving as general Hamilton. manager for the Peabody Switching location. Joe Via, vice president of operations, said, Right bottom: Hamilton and Joe Via, vice presi- dent of operations, visiting with Go Teamers on "We've been wanting to do the switching here the Peabody operations.