2 Watco CompaniesWatco Companies, Inc. was started in 1983 by Charles R. “Dick” Webb with a switching operation in DeRidder, LA that is still in existence todayCoffeyville, KS was our next expansion in 1985 with a car repair facility. This expanded into what is now the SKOL railroad which was the first shortline purchase completed with the Union PacificWatco’s focus on Customer satisfaction has grown the company into an all encompassing industry serving rail, mechanical, switching, storage, trucking, warehousing and intermodal needs of Customers throughout twenty-six states
3 Strategic Business Model Watco ServicesClass I’sTransportationShort LinesMechanicalCustomerOther CustomersIntermodal/TransloadGov.- Eco. DevelopmentWatco’s goal is to improve profitability and customer satisfaction over the long-term by providing services to fill all customer needs
4 Statistics Largest car repair shop service provider in U.S. 350 locomotives2,500 railcars26 states served21 switching operations22 short line railroads14 mechanical shops, 19 mobile mechanical shops, 4 locomotive shops13 transload locations7 warehouses & 1 intermodal locationLargest car repair shop service provider in U.S.3rd largest short line railroad operator in U.S.3rd largest industrial contract switching provider500,000+ annual carloads3,700 track milesOver 2,000 Watco team members
6 Mechanical Services Railcar Repair Fourteen locations throughout the United StatesMay Acquired Millennium Rail, a fully-integrated provider of repair and maintenance services such as fleet management, general repair and maintenance, specialty freight car manufacturing and program workJune 2008 – Acquired Fitzgerald Railcar Services, Inc., a comprehensive railcar repair and maintenance company, expanding services to Georgia and NebraskaMobile Repair ServicesEighteen mobile rail locationsContract and emergency repairs including, coal fleets, preparation and cleaning of boxcars and refrigerated carsLocomotive RepairFour locations available to meet Watco andCustomer needs
7 Watco Mechanical Services Mechanical LocationsRAILCAR SHOPSCoffeyville, KSCouncil Bluffs, IAFitzgerald, GAHockley, TXHollidaysburg, PAHouston, TXJacksonville, FLJunction City, KSMarshall, TXNeodesha, KSOmaha, NEPittsburg, KSWood River, ILZwolle, LALOCOMOTIVE SHOPSLewiston, IDSilsbee, TXVicksburg, MSWichita, KSMECHANICAL MOBILEABWR Birmingham, ALChanute Chanute, KSFWWR Ft. Worth, TXG&W East Peoria, ILHodge Hodge, LAHouston Houston, TXIdaho Falls Idaho Falls, IDKansas City Kansas City, KSLewiston Lewiston, IDMNA Carthage, MOOKC Oklahoma City, OK Prattville Prattville, ALRupert Rupert, IDSilsbee Silsbee, TXTuscaloosa Tuscaloosa, ALUP Hermiston, IDVicksburg Vicksburg, MSWichita Wichita, KSWinfield Winfield, KS
8 Watco Transportation Services Railroad & Switching Locations SWITCHING SERVICESARP Monroeville, ALBoise DeRidder, LABoise Wallula, WACondon Arlington, OREDC El Dorado, AREntergy West Lake, LAGPIP Houston, TXInternational Paper Mansfield, LAInternational Paper Prattville, ALNational Starch Kansas City, MO R&H Deer Park, TXSolutia Alvin, TXSolutia Pensacola, FLSolvay Green River, WY Sunoco Tulsa, OKTPC-Petrochem Houston, TXTPC-Petrochem Port Neches, TXTXI Victorville, CAUP Brimstone, LAVentura Ontario, CAWestvaco DeRidder, LAAlabama Southern RailroadABS-Tuscaloosa, ALAlabama Warrior RailwayABWR – Birmingham, ALArkansas Southern RailroadARS-Nashville, ARAustin Western RailroadAWRR-Austin, TXBaton Rouge Southern RailroadBRS – Baton Rouge, LAEastern Idaho RailroadBoise Valley RailroadBVRR – Boise, IDEIRR-Twin Falls, IDGrand Elk RailroadGDLK – Grand Rapids, MIGreat Northwest RailroadGRNW-Lewiston, IDKaw River RailroadKAW-Kansas City, KSKansas & Oklahoma RailroadKO-Wichita, KSLouisiana Southern RailroadLAS-Hodge, LAMission Mountain RailroadMMT-Columbia Falls, MTMississippi Southern RailroadMSR-Bay Springs, MSPacific Sun RailroadPSRR – San Diego, CAPalouse River & Coulee City RailroadPCC-Lewiston, IDPennsylvania Southwestern RailroadPSWR-Midland, PASouth Kansas and Oklahoma RailroadSKOL-Cherryvale, KSStillwater Central RailroadSLWC-Oklahoma City, OKTimber Rock RailroadTIBR-Silsbee, TXVicksburg Southern RailroadVSOR-Vicksburg, MSYellowstone Valley RailroadYSVR-Sidney, MT
9 LISA BUTTS BVRR EIRR PSRR PCC GRNW MMT YSVR PSWR Manager Car Accounting(also handles Western Region)(620)BVRREIRRPSRRPCCGRNWMMTYSVRPSWR
10 Maurice Davis SLWC ARS GDLK KAW KO SKOL Car Accounting Supervisor CENTRAL REGION(620)SLWCARSGDLKKAWKOSKOL
11 Brad Stroud ABWR ABS LAS MSR AWRR TIBR VSOR BRS Car Accounting SupervisorGULF REGION(620)ABWRABSLASMSRAWRRTIBRVSORBRS
12 Switching ServicesCar inspections, thus reducing car rejections at the loading dock.Car cleaning, thus reducing car rejections at the loading dockCar repair to ensure railcars are suitable for product loadingTrack inspection and maintenanceComputerized yard inventory reportsAssist with plant personnel in other aspectsof their businessAEI tag readers for inventory controlComputer programs for yard management.
13 Switching ServicesWatco Switching Services began providing specialized industrial contract switching services in We offer a wide variety of contractual switching services to our existing customer base located in 21 different locations throughout the US. We continue to provide switching services to our original customer we began with in Our customer retention is built with long-term partnerships thus providing customers with safe, efficient rail switching services. Our safety record is among the top in the industry.We currently serve the Paper, Chemical, Petroleum, Forest products, Metals and ores, Aggregate, and Intermodal Industries.Exceed each customer’s rail switching needs. On-site managers to work jointly with the customer, the serving railroad and the switching crew to ensure safe, prompt, efficient service.
14 Watco Safety Commitment Watco is committed to safety for our employeesCompliance with our new policies and regulations is essential and required to ensure the safety of our employees and our companyCompliance with our rules/policies and with regulations is not an option but a condition of employment with Watco ServicesStrong and effective safety relationships with our customers is essential to the continued improvement of our company
15 Watco’s Safety Commitment Reportable Injury RatioInitiated a commitment to safety improvement in 2003 – now operating significantly below industry averages*2009 data as of , ASLRRA data as of October ‘0915
16 A Customer Relationship Company Guiding PrinciplesImproved Customer SatisfactionImproved SafetyImproved Profitability & Return on AssetsLong-term VisionWatco will provide the right service, at the right time,at the right price in the right condition with value added.16
17 A Customer Relationship Company Guiding PrinciplesImproved Customer SatisfactionImproved SafetyImproved Profitability & Return on AssetsLong-term VisionWatco will provide the right service, at the right time,at the right price in the right condition with value added.
18 Transload & Intermodal Services Rail Logistics, Warehousing, Transloading and TruckingConsultingConsolidation and deconsolidation of truckloads to rail, rail tomulti-destination truckloadsRailcar ordering and fulfillmentBilling railcar shipmentsBundled pricingTransloadingCross DockStorageInventory managementTruck dispatchingFlatbeds, vans, stretch and drop deck trailers
20 Real Estate and Industrial Development Provides customers with resources to facilitate the growth of their businessLocates land for new plantsAssist in identifying optimum locations utilizing rail, warehouse or distribution servicesIdentifying space to locate team track to unload product
21 Watco Companies Review Watco is an experienced leader in the Transportation Industry.Turn key operation includes all freight services and scheduling.Comprehensive logistics system for railcar planning, scheduling, tracing and inventory control.Proactive goal and trend measurement. Watco believes that you cannot improve what you cannot measure. We believe strongly in establishing baselines, trending, and tracking to measure productivity.Experienced management and crew base for smooth transition on startups. We will keep your operations running 365 days a year, guaranteed!