Watco To Take Over Operation of Pecos Valley Southern Railroad

Watco Companies L.L.C. last week announced that the Pecos Valley Southern Railroad will soon begin operating as a subsidiary of Watco Transportation Services, LLC, under a long-term lease agreement. The operations will transition to Watco as of Sept. 1, 2012.

Capitol Aggregates, which owns the PVSR, has operated the 19-mile railroad to serve its sand and gravel quarry. Watco said it will provide service to the quarry and to all other customers on the Texas railroad.

"We appreciate our great Customer Capitol Aggregates for their business and for giving Watco the opportunity to operate the Pecos Valley Southern Railroad" said Rick Webb, Watco Companies' CEO, in the company's announcement.

In May of this year, Watco started locating crude oil customers on the line. Since that time Watco said, three new crude oil shippers have located on the line, and business is continuing to grow. T

"We maxed out the existing loading track infrastructure within the first two weeks of transload operations," said Allan Roach, senior vice president business development for Watco. "Watco has doubled the loading capacity since that time and we have track crews on the ground now working on a project to increase interchange capacity. The line has additional parcels of land for future development, all of which can accommodate unit train loading and/or unloading terminals. Interest in bringing crude and frac sand onto the railroad for transloading is very high and we are excited about the opportunity to grow new business on the line."