Watco acquires property, files with STB to lease Chicago-area rail line

Watco Cos. LLC's newly formed subsidiary Elwood Joliet & Southern Railroad (EJSR) has acquired a former Railway & Industrial Services Inc. (RIS) property near Joliet, Illinois.

Watco plans to repurpose the former mechanical repair shop into a storage and transit (SIT) yard, and provide switching services to the new facility and adjacent customers, company officials said yesterday in a press release.

Watco plans to make infrastructure upgrades to the 39-acre property, which will primarily serve customers needing storage of plastic, chemical and other bulk inventory and access to the Chicago rail network, Watco officials said.

Last week, Watco filed a petition with the Surface Transportation Board to lease an adjoining rail line that serves RIS and other customers from CN's Wisconsin Central Ltd. Now the Phoenix Line, it will be known as the EJSR Line. The EJSR will serve current customers along the line, as well as new customers who will use the rail yard, Watco officials said.

"Watco is excited to provide a new service solution that will benefit both industries and consumers in the Midwest," said Watco Executive Vice President and Chief Commercial Officer Stefan Loeb. "Construction will soon start on the SIT yard, and we look forward to providing important storage capacity to the market. Watco is also very excited to earn the right to serve and create mutual value with the important customers and Wisconsin Central Ltd. (CN) on the rail line."