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On Friday, The Watco Cos. launched the Appalachian and Ohio Railroad (A&O), which operates a 158-mile line between Grafton and Cowen, W.Va., previously owned by CSX Transportation.

A&O also operates the former B&O Pickens Subdivision from Hampton to Alexander, W.Va. Coal will comprise 90 percent of the short line’s traffic. A&O already has moved several coal unit trains to a CSXT interchange in Grafton.

Ninety-five percent of the short line’s employees are local hires and half are former CSXT employees. James Harr serves as A&O’s general manager.

Watco also owns 10 other short lines operating in 19 states.