Watco announces Alabama short line debut

Pittsburg, Kan.-based Watco Transportation Services on Tuesday announced the “successful start-up” of the Autauga Northern Railroad (AUT), which began serving customers last Saturday. AUT is Watco’s third railroad in Alabama, Watco said.

In an agreement signed between Watco and Norfolk Southern Corp., Watco holds a 20-year lease with a 10-year renewal option to operate 43.62 miles of track running from Maplesville, Ala., to Autauga Creek, Ala. The line handles approximately 9,000 annual carloads and will be operated by the AUT on a six-days-a-week schedule.

Watco said it has a long history with this line segment, having provided contract switching services for the AUT’s major customer, International Paper in Prattville, Ala., for more than 20 years.

“This is an exciting opportunity to expand important relationships with our Customers,” proclaimed Stefan Loeb, vice president of business development. “We look forward to serving the growing freight rail needs of our long-time Customer International Paper. Watco is also proud to strengthen its relationship with the NS and continually provide quality transportation value to all its Customers in the area.”

Watco will invest approximately $2.39 million in the first year of operations to upgrade the track to Class II standards (25 mph). The upgrade will include spending $1.792 million on ties, $443,000 on ballast and $150,000 on bridge repairs.

“Our capital investment commitment shows our belief in AUT’s customers, the state of Alabama, and the continued positive trends of the rail industry,” said Loeb. “Improving the infrastructure makes our operations safer and more efficient, but most importantly, the improvements are being made for the benefit of our customers.”