Watco Australia Explained

Watco Australia
Type:Subsidiary
Foundation:2010
Area Served:Queensland
Western Australia
Industry:Rail transport
Services:Freight & infrastructure train haulage
Parent:Watco
Homepage:https://www.watcoaustralia.com.au

Watco Australia is a rail haulage operator that was formed in 2010 to haul grain for the CBH Group in Western Australia. In 2019, it commenced operating in Queensland under a contract with GrainCorp. It is a subsidiary of Watco.

History

In 2009, CBH Group decided to put its rail grain haulage services out to tender for the first time.[1] [2] This work had previously been performed by the Western Australian Government Railways, Australian Western Railroad and QR National. CBH aimed that the amount of grain transported by rail rise from 50% to 70%.[1] [3] CBH settled on a business model that saw it invest in new locomotives and grain wagons, with day-to-day operations contracted out.[4] [5]

In December 2010, CBH awarded Watco WA Rail a ten-year contract to operate services in the south of Western Australia.[6] [7] [8] To operate the services, CBH purchased 22 CBH class locomotives from MotivePower, Boise,[9] and 574 grain wagons from Bradken, Xuzhou.[10] [11] The cost of this rolling stock was $175 million.[12]

Under the agreement, Watco was responsible for providing a comprehensive rail logistics planning service, including train planning and scheduling, tracking, maintenance, inventory control and crew management.[13] Watco operates and maintains the rolling stock, with ownership remaining with CBH.

The services linked various CBH grain collection points in the wheatbelt with CBH terminal and port facilities in Albany, Geraldton and Kwinana.[14] CBH operate on the Arc Infrastructure managed open access network.[15] Watco transported an average of 10-12 million tonnes (368-441 million bushels) of grain from 192 country reception sites to CBH's four export terminals.[12]

Although the contract officially commenced on 1 May 2012, Watco operated its first service on 30 March 2012.[16] [17] [18] Because of a delay in the delivery of the rolling stock, QR National continued to operate some gauge services until October 2012,[19] while to operate standard gauge services, locomotives were hired from Chicago Freight Car Leasing Australia and SCT Logistics.[20] A further three locomotives were delivered in 2015 as compensation for late delivery of the original order.[21]

In 2016, Watco Australia was awarded an infrastructure train contract by Brookfield Rail to operate infrastructure trains with two 422 class locomotives purchased from CFCL Australia.[22] [23] In December 2016, Watco acquired a majority shareholding in Intermodal Group, a Western Australian intermodal container transport group.[24] [25] In July 2017, Watco took over the operation of the Forrestfield to Fremantle Harbour intermodal container service from SCT Logistics with flat wagons purchased from CFCL Australia.[26] [27]

In late 2019, Watco Australia commenced operations in Queensland under a seven-year contract with GrainCorp. Eight WRA class locomotives from the National Railway Equipment Company and 128 wagons (designated DGWY) from CRRC in China were ordered.[28] Seven WRB class and one WRC class were repatriated from Transnet Freight Rail in South Africa.[29] [30]

When next tendered, the CBH Group contract was awarded to Aurizon.[31] [32] Although scheduled to transition in May 2022, all parties agreed to bring the handover date forward to September 2021.[33] [34]

Fleet

ClassImageBuiltNumberUnit numbersNotes
Standard Gauge (4' 8" / 1,435mm)
HL19691HL203Acquired from CFCL Australia November 2016, originally NSW Railways 42203
FL19701FL220Acquired from CFCL Australia November 2016, originally NSW Railways 42220
G19841G511Acquired from CFCL Australia 2017, originally owned by V/Line[35]
PB20147PB1-7Acquired from Pacific National in late 2021. Used to shunt the Port Kembla steelworks.
T19644T369, T373, T376-77Acquired from Rail First in 2021. Originally owned by the Victorian Railways (later V/Line)
DR19712DR1564-65Ex TasRail D class, originally WAGR D1564-65
Narrow Gauge (3' 6" / 1,067mm)
20198WRA001-008For GrainCorp contract in Queensland
WRB19827WRB2174, 77, 80–81, 83–84, 88For GrainCorp and cattle contract in Queensland, repatriated from Transnet Freight Rail in South Africa after being sold by Aurizon[36]
WRC19842WRC2202, 2206
WRD20052WRD2257, 2266
WRE19672WRE1723, 62For cattle contract in Queensland. 1723 ex Queensland Rail, 1762 repatriated from South Africa
Watco also operated 25 CBH class and 10 DBZ class locomotives as part of its contract with CBH.

Leased Fleet

Watco also have multiple locomotives leased to them for their Joint Venture with QUBE for their standard gauge Nickel West operations.

ClassImageBuiltNumberUnit numbersNotes
GL2003-20047GL103, GL104, GL106, GL107, GL110, GL111 & GL112Rebuilt From the 1970s 442 class
VL2007-20093VL358, VL359 & VL361
GML1019901GML10Leased From QUBE

External links

Notes and References

  1. News: Bidding underway for WA grain rail management. Rail Express. 11 November 2009. https://web.archive.org/web/20091118165147/http://www.railexpress.com.au/archive/2009/november/november-11-09/other-top-stories/bidding-underway-for-wa-grain-rail-management. 18 November 2009.
  2. News: Tender plans for rail future. ABC News. 18 November 2009. https://web.archive.org/web/20140224160121/http://www.abc.net.au/site-archive/rural/wa/content/2009/11/s2746623.htm. 24 February 2014. Karen. Hunt.
  3. News: Asciano in $700m grain bid. The Australian. 30 August 2010. https://web.archive.org/web/20100903210135/http://www.theaustralian.com.au/business/news/asciano-in-700m-grain-bid/story-e6frg906-1225911572877. 3 September 2010. Tracy. Lee.
  4. Locomotives roll off production line and wagons hit the WA shore. CBH Group. March 2012. https://web.archive.org/web/20120318061151/https://www.cbh.com.au/media/240596/pick%20of%20the%20crop%20es%20hr.pdf. 2012-03-18. Pick of the Crop. 2.
  5. Major new investment in WA grains industry. Agriculture & Food Minister. 24 August 2012. https://web.archive.org/web/20140222154510/http://www.mediastatements.wa.gov.au/pages/StatementDetails.aspx?listName=StatementsBarnett&StatId=6320. 22 February 2014. Hon Terry Redman MLA.
  6. Web site: Watco wins CBH Group rail contract. Perth Now. 13 December 2010.
  7. News: US group wins CBH contract from QR National. The Australian. 14 December 2010. https://web.archive.org/web/20110119184958/http://www.theaustralian.com.au/business/us-group-wins-cbh-contract-from-qr-national/story-e6frg8zx-1225970495346. 19 January 2011. Tracy. Lee.
  8. Web site: Watco wins CBH grain rail contract. Rail Express. 15 December 2010. https://web.archive.org/web/20110316042651/http://www.railexpress.com.au/archive/2010/december/15-12-10/other-top-stories/watco-wins-cbh-grain-rail-contract. 16 March 2011.
  9. Book: Clark, Peter. An Australian Locomotive Guide. 2012. Rosenberg Publishing. 9781921719554. 312.
  10. New wagons hit the Western Australian shore. CBH Group. 9 February 2012.
  11. Web site: WA grain industry takes ownership of first rail fleet. https://archive.today/20140304205722/http://www.railexpress.com.au/archive/2012/august/august-29th-2012/other-top-stories/wa-grain-industry-takes-ownership-of-first-rail-fleet. 4 March 2014. Rail Express. 29 August 2012. dead.
  12. Web site: Western Australia (WA). Watco. 18 May 2017. 23 October 2016. https://web.archive.org/web/20161023183150/https://www.watcocompanies.com/services/rail/western-australia-wr/. dead.
  13. News: CBH, Watco mark anniversary of moving grain on rail. World Grain. 3 April 2013. https://web.archive.org/web/20140222101207/http://www.world-grain.com/News/News%20Home/World%20Grain%20News/2013/4/CBH%20Watco%20mark%20anniversary%20of%20moving%20grain%20on%20rail.aspx?cck=1. 22 February 2014.
  14. Web site: Receival Site Map. CBH Group. https://web.archive.org/web/20140222050544/https://www.cbh.com.au/media/305738/receival%20site%20map.pdf. 2014-02-22.
  15. News: ERA to mediate CBH, Brookfield rail talks. Western Australian Business News. 31 October 2013. Dan. Wilkie. 18 May 2017. 11 October 2017. https://web.archive.org/web/20171011232346/https://www.businessnews.com.au/article/ERA-to-mediate-CBH-Brookfield-rail-talks. live.
  16. Web site: CBH, Watco rail agreement starts early. World Grain. 2 April 2012. https://web.archive.org/web/20140222141139/http://www.world-grain.com/News/News%20Home/World%20Grain%20News/2012/4/CBH%20Watco%20rail%20arrangement%20starts%20early.aspx. 22 February 2014.
  17. Web site: CBH grain wagons go to work early. Farm Weekly. 5 April 2012. https://web.archive.org/web/20140222002123/http://www.farmweekly.com.au/news/agriculture/cropping/general-news/cbh-grain-wagons-go-to-work-early/2512313.aspx. 22 February 2014. Bobbie. Hinkley.
  18. News: First train runs from Merredin. Merredin-Wheatbelt Mercury. 12 April 2012. https://web.archive.org/web/20140222222617/http://www.merredinmercury.com.au/story/228688/first-train-runs-from-merredin/. 22 February 2014.
  19. Web site: Annual Report June 2013. Aurizon. https://web.archive.org/web/20140223122055/http://www.aurizon.com.au/Downloads/Aurizon%20Annual%20Report%202013.pdf. 23 February 2014.
  20. Web site: Annual Report. https://web.archive.org/web/20130420051907/https://www.cbh.com.au/annual-reports/2012/index.html#/16/. 2013-04-20. September 2012. CBH Group. dead.
  21. News: CBH pushes market limits. The West Australian. 23 December 2013. Yahoo! News. https://web.archive.org/web/20140226153723/http://au.news.yahoo.com/thewest/countryman/a/20451719/cbh-pushes-market-limits/. 26 February 2014. Brad. Thompson.
  22. Watco Australia. Motive Power. 108. November 2016. 28.
  23. Web site: Transfer of ownership of locomotives FL220 & HL203. Australian Rail Track Corporation. 14 November 2016. 29 June 2017. 27 April 2017. https://web.archive.org/web/20170427211127/https://extranet.artc.com.au/docman/DocManFiles/DocTypes/TOC/Files/16175.PDF?551291244. live.
  24. Watco Acquires WA's IMG. Watco WA. 22 December 2016. 29 June 2017. 25 February 2017. https://web.archive.org/web/20170225070156/http://www.intermodal.net.au/wp-content/uploads/Watco-Acquires-WAs-IMG.pdf. live.
  25. News: Watco buys WA freight business. Western Australian Business News. 5 January 2017. Mark. Beyer. 18 May 2017. 11 October 2017. https://web.archive.org/web/20171011181635/https://www.businessnews.com.au/article/Watco-buys-WA-freight-business. live.
  26. Web site: Minutes. Western Australia Port Operations Task Force. March 2017. https://web.archive.org/web/20171011181238/http://www.fremantleports.com.au/Operations/Landside/WAPOTFDocuments/2017%2003%20-%20March%202017%20meeting%20papers.pdf. 2017-10-11.
  27. Web site: Transfer ownership and renaming of CQFY & CQSY wagons to DQFY & DQSY. Australian Rail Track Corporation. 12 April 2017. 29 June 2017. 28 June 2017. https://web.archive.org/web/20170628204631/https://extranet.artc.com.au/docman/DocManFiles/DocTypes/TOC/Files/17039.PDF?103228917. live.
  28. US giant Watco poised to enter Queensland. Track & Signal. 22. 3. August 2018. 25.
  29. Old for New for Whyalla Catch Point issue 253 September 2019 page 10
  30. Watco Australia Qld News Motive Power issue 125 September 2019 page 6
  31. https://web.archive.org/web/20210806015842/https://www.aurizon.com.au/news/2021/aurizon-and-cbh-sign-long-term-agreement-for-wa-grain-haulage Aurizon and CBH sign long-term agreement for WA grain haulage
  32. https://web.archive.org/web/20210813041840/https://www.railexpress.com.au/cbh-chooses-aurizon-as-rail-services-provider/ CBH chooses Aurizon as rail services provider
  33. https://web.archive.org/web/20210618104539/https://www.farmweekly.com.au/story/7208272/cbh-seeks-a-rail-new-deal/ CBH seeks a rail new deal
  34. Grain contracts change hands in Western Australia The Railway Magazine issue 1447 October 2021 page 106
  35. Locomotive acquisitions The Westland issue 286 2018 page 24
  36. Watco prepares for Queensland start-up Railway Digest August 2018 page 17

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