Watco assumes operations of Canadian short line

Watco Cos. LLC last month began managing all aspects of operations for Stewart Southern Railway Inc., an 80-mile short line that operates between Regina and Stoughton, Saskatchewan.

It’s the short-line holding company’s first operation in Canada, Watco officials said in the firm’s December newsletter. Watco assumed operations Nov. 1 for the Stewart Southern Railway, which handles such commodities as grain, peas, lentils and potash.

The short line is owned by the Seaboard Overseas and Trading Group. The day-to-day operations now are overseen by Watco General Manager Carter Stewart, who manages a team that includes retired Canadian Pacific workers.

With the line owned by a third party, the operating arrangement is similar to how the holding company manages operations in western Australia for CBH Group, Watco officials said.

“As with the Australia operation, grain is the key commodity, but the difference in this situation is that are plenty of opportunities to bring in a variety of commodities to enhance the diversity of the line,” they said in the newsletter.

For example, there’s potential for the short line to handle canola oil, Watco officials believe.