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The Watco Cos. Inc. and BNSF Railway Co. have inked another trackage lease deal. Yesterday, Watco’s Kaw River Railroad (KAW) began operating 15 track miles between Kearney and Birmingham, Mo., after securing a lease agreement with the Class I.

The deal includes rights to related mainline, yard and industry tracks. KAW will serve current customers — who mostly ship paper and plastics — and solicit new business in Kearney, Liberty and Birmingham.

Launched in June 2004, KAW operates a 13-mile former Kansas City Southern-owned line that crosses the Missouri and Kansas sides of Kansas City. The short line interchanges with BNSF, KCS and Union Pacific Railroad.

"KAW currently serves a diversified customer base in the Kansas City area, so we are looking forward to expanding our operations in Kansas City,” said Watco Chief Executive Officer Rick Webb in a prepared statement.

Earlier this year, Watco’s Stillwater Central Railroad began operating 15 track miles between Wheatland and Oklahoma City, Okla., after reaching a lease agreement with BNSF. And late last year, Watco — which owns 11 short lines operating in 19 states — acquired track in Montana from BNSF and launched the Mission Mountain Railroad.