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Re: Watco as middle man--how much.?
Author: jdm
Date: 02-14-2007 - 16:18
On the Blue Mountain segment Hooper to Colfax Watco cannot sell that segment unless UPRR approves and the UP as SL said gets to set the rates and they have control of any surcharges.
The BNSf and the UP both put penalty clauses in the line sale agreements that would not allow Watco to move traffic adverse to the Seller if cars moved adverse then the line would have a penalty imposed on the traffic and the penalties would be more than any division that the shortline would get. This clause is in most sale/lease contracts.
On the South end the Port of Whitman purchased the track to Dayton Faom Walla Walla, this was trackage that had trouble with washouts and was in poor shpae and WATCO did not run off traffic but Green Giant closed the cannery and that was the bulk of the traffic except for some grain that moved if the river rate got to high or the river was low.
While all of the experts on this board like to bash Watco, they maintain most of the lines they lease or own better Than UPRR or BNSF did and do a better job than rail America and some other shortline companies. Watco have saved many miles of track that would have otherwise been abandoned, look at the KO in Kansas and waht Omni-trax wanted to do. Bash away if you must but look at the EIRR a line with Good traffic and Track that was in fair shape down in Idaho. Ask the customers on the EIRR or the KO, SKOL, SLWC, TIBR what kind of service Watco gives and you will find most every customer will say service has been much better. So while we all do not want to see lines abandoned or put into trail status. Parts of the PCC do not and in the future will not have enough traffic to support continued operations even with the state purchase of the line it will need massive amounts of subsidy money to keep it going year after year after year.
I hope the new customers on the CW allow the line to have enough traffic but as long as the BNSF has the Ritzville shuttle house grain will move there and to the river 1st then as a last resort on the CW, its a matter of money. Grain off the P&L will go to the River and From Winona West to Colfax its the River 1st. Watco working with UPRR does the shuttle from Pleasant Valley line and west to Hopper and down to Wallua only with UP blessing this was something they worked hard to get done and then the River gets the grain, so to say there was not marketing done is a false statement, Watco did market these lines no one would commit to any kind of long term movements or even to any shortterm movements.
On the South end now that the Reffer Shuttle is up and running out of Wallua, I would not be surprised to see the Walla, Walla to Weston line close even with Senator Smith around.
Again its price and cost of shipping not Watco service. So while Watco may not be perfect they are better than most when it comes to service and keeping lines in service where the class Is would have abondoned the lines.
The BNSf and the UP both put penalty clauses in the line sale agreements that would not allow Watco to move traffic adverse to the Seller if cars moved adverse then the line would have a penalty imposed on the traffic and the penalties would be more than any division that the shortline would get. This clause is in most sale/lease contracts.
On the South end the Port of Whitman purchased the track to Dayton Faom Walla Walla, this was trackage that had trouble with washouts and was in poor shpae and WATCO did not run off traffic but Green Giant closed the cannery and that was the bulk of the traffic except for some grain that moved if the river rate got to high or the river was low.
While all of the experts on this board like to bash Watco, they maintain most of the lines they lease or own better Than UPRR or BNSF did and do a better job than rail America and some other shortline companies. Watco have saved many miles of track that would have otherwise been abandoned, look at the KO in Kansas and waht Omni-trax wanted to do. Bash away if you must but look at the EIRR a line with Good traffic and Track that was in fair shape down in Idaho. Ask the customers on the EIRR or the KO, SKOL, SLWC, TIBR what kind of service Watco gives and you will find most every customer will say service has been much better. So while we all do not want to see lines abandoned or put into trail status. Parts of the PCC do not and in the future will not have enough traffic to support continued operations even with the state purchase of the line it will need massive amounts of subsidy money to keep it going year after year after year.
I hope the new customers on the CW allow the line to have enough traffic but as long as the BNSF has the Ritzville shuttle house grain will move there and to the river 1st then as a last resort on the CW, its a matter of money. Grain off the P&L will go to the River and From Winona West to Colfax its the River 1st. Watco working with UPRR does the shuttle from Pleasant Valley line and west to Hopper and down to Wallua only with UP blessing this was something they worked hard to get done and then the River gets the grain, so to say there was not marketing done is a false statement, Watco did market these lines no one would commit to any kind of long term movements or even to any shortterm movements.
On the South end now that the Reffer Shuttle is up and running out of Wallua, I would not be surprised to see the Walla, Walla to Weston line close even with Senator Smith around.
Again its price and cost of shipping not Watco service. So while Watco may not be perfect they are better than most when it comes to service and keeping lines in service where the class Is would have abondoned the lines.
