For Watco, strategic acquisitions lay ground for growth in Wyoming logistics hub
9/18/2024
By Bridget Dean, Associate Editor
Watco Co. LLC.’s March acquisition of the rail assets within the Cheyenne Logistics Hub in Wyoming was a strategic move that’ll benefit one of its many short lines: the Swan Ranch Railroad (SRRR).
SWRR has operated the Cheyenne Logistics Hub rail line since the hub opened for business in 2012. The acquisition paves the way for SRRR to expand tracks further and offer new services.
Granite Peak Group developed the logistics hub in a convenient location for transporting goods. Located 90 minutes north of Denver, the hub has rail access to BNSF Railway Co. and Union Pacific Railroad via SRRR, and truck access to Interstate Highway 25 and Interstate Highway 80.
Watco also purchased 18 acres within the logistics hub in July, says Watco Director of Industrial Development Luke Bellamy.
“We see the growth potential out there, specifically in the wind market,” Bellamy says.
There are several large wind projects slated to start in Wyoming within the next few years, says Bellamy, whose role at Watco is to drive business into Cheyenne and the hub. Large wind turbine parts — such as the blades, the tower and the nacelle — are typically transported long distances via rail before being trucked to their final destinations.
“We’re really trying to get our anchors in now, to make sure that we are able to help facilitate and participate in that,” he says. “Having an offload spot, a large lay down yard, having those options for customers out there, that’s going to be very beneficial.”
For now, the land will be used to serve existing customers and expand operations, Bellamy says. The 18 acres run in a strip adjacent to current SRRR tracks, connecting the short line to an additional 150 acres for future rail development serving new customers, or projects such as the lay down yard.
“There are plans to go vertical there with a build-to-suit option for our customers,” Bellamy says. “We would work in partnership with [Granite Peak Group] when a rail user came in.”
The acquisition makes it possible for SRRR to offer transloading services within the logistics hub, too.
“We just really want to make that park as attractive as possible for when folks are looking for a spot to land either a manufacturing facility [or] additional transportation options,” says Bellamy. “Whatever it may be, we just want to make sure that it’s ready to go.”
