As we all know the WSOR will become a subsidiary of Watco on January 1st 2012. Another ledgend one step closer to being gone from our lives.
Does Watco bring a larger pool of financial resources for the benefit of investment in WSOR?
Editor Emeritus, This Week at Amtrak
Mr. Railman "As we all know the WSOR will beco that the WSOR me a subsidiary of Watco on January 1st 2012. Another ledgend one step closer to being gone from our lives."
"As we all know the WSOR will beco that the WSOR me a subsidiary of Watco on January 1st 2012. Another ledgend one step closer to being gone from our lives."
At fist reading I would suggest that your statement might be a bit harsh. I don't necessarily think that because WATCO has bought a controling interest. That the WSOR is a gonner.
The TRAINSNewswire of this date says:"...PITTSBURG, Kan. — Shortline conglomerate Watco Cos. has announced it will buy a majority interest in Milwaukee-based regional Wisconsin & Southern Railroad Co. Current W&S President William Gardner will remain president even as he relinquishes control of the line..."
FTA:"...Wisconsin & Southern operates more than 700 miles of track in southern Wisconsin and northern Illinois, most of it under agreements with the state of Wisconsin. Under the deal, all current agreements for track use will continue. W&S’s corporate structure will remain the same, and its Milwaukee headquarters will remain home to the railroad’s dispatching, customer service, and other administrative functions..."
WSOR as it is currently comprised is about 30 or so years old(?) with somewhere between 600 and 700 miles of track, while WATCO has in the neighborhood of something like3500 to 4000 miles of track and owns about 20 to 25 railroads.
My guess is that it was a railroad that was struggling(?) and ripe to be bought by an organization with deep pockets, and a plan for its use as a functional part of its operations. Not to mention the State of Wisconsin plays a heavy part in the picture of the WSOR.
In talking with some upper managment, it sounds like the WSOR is using Watco in a sense to have the money to expand their lines. Watco has a 51% interest, so if something were to happen it wouldnt be hard to Gardener to buy back the 2%. Everything WSOR will stay the same, locomotives are still being painted, its still the WSOR etc etc. Just Watco has a controlling interest.
Mechanical Department "No no that's fine shove that 20 pound set all around the yard... those shoes aren't hell and a half to change..."
The Missabe Road: Safety First
Actually, according to the STB filing, Watco will take a 90 percent interest:
http://www.stb.dot.gov/filings/all.nsf/ba7f93537688b8e5852573210004b318/7dbdab730b51961c852579570071070b/$FILE/231358.PDF
It's true that Watco says publicly it's not planning to alter Wisconsin & Southern's operations. I have no reason not to take them at their word. However, if you look at how it usually happens when one business acquires another, the buying entity pushes out the management of the bought entity and assimilates it shortly after the deal closes. Recall that CP said it would keep Kevin Schieffer on as president of DM&E. That didn't even last until the formal operational merger in 10-08. That's not me taking a shot at CP or at Kevin; it's just the facts of what happened.
Regardless of what gets said publicly at the time of a merger, whether it be within or without the rail industry, in the vast majority of cases, an acquisition is exactly what it sounds like. Perhaps the Watco-W&S deal will be an exception to this rule. As a railfan, I hope it is. But if I were placing a wager on it, my money would be landing on the other side of the table.
Best,
Andy Cummings , said, in part:"...Regardless of what gets said publicly at the time of a merger, whether it be within or without the rail industry, in the vast majority of cases, an acquisition is exactly what it sounds like. Perhaps the Watco-W&S deal will be an exception to this rule. As a railfan, I hope it is. But if I were placing a wager on it, my money would be landing on the other side of the table..."
Andy, what you have said should be writ down in the "Annals of Understatement!"
More times than not the Rah! Rah! Rhetoric is spouted to calm down the taken over; to at least keep a semblance of order until the Whale can swallow Jonah.
samfp1943 My guess is that it was a railroad that was struggling(?) and ripe to be bought by an organization with deep pockets, and a plan for its use as a functional part of its operations. Not to mention the State of Wisconsin plays a heavy part in the picture of the WSOR.
That's what Canadian National said when they bought the WC. From what i know, the WSOR has actually been growing in the past few years, as well as improving their infrastructure by laying down new rails and putting in new bridges, enabling faster speeds. Don't also forget the "Grow Wiscnsin" project that plans on opening two new lines/extensions that could spur industrial growth and thus, more carloads for the WSOR.
thank you for your unbiased response, Andy.
It would be nice to keep the WSOR the WSOR in spirit at least...and based on some posts elsewhere in the web it seems that Mr. Gardner has carefully selected the "right suitor" for the company. Given that Watco appears to be successful at what they do...it'll be hard to imagine them stopping or significantly altering what's already working. As long as the WSOR can get, keep, grow and earn a profit at what they're doing...I don't see why Watco would buy them and then change what's happening.
Dan
Well, it is better than the G&W, which defaces almost every railroad they acquire by repainting the locomotive in that ugly orange paint scheme.
Mr. Railman Well, it is better than the G&W, which defaces almost every railroad they acquire by repainting the locomotive in that ugly orange paint scheme.
There is more to railroading than paint...
It's been fun. But it isn't much fun anymore. Signing off for now.
The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any
How can you not like G&W's paint? They also are the ones that have managed to leave some Cub Scouts and a few SP painted units roaming around Portland Or and the Willamette Valley.
As was previously posted, the WSOR will remain basically the same as it is now, only with WATCO being a parent company. It sounds like there will be no changes to the roster or to the paint scheme. I've noticed that several of the WATCO roads have retained their independent paint schemes rather than having everything get repainted into black and yellow. I would expect this to be the case with the WSOR as long as Mr. Gardner remains with the railroad, which will be the case for the time being.
Yeah...i immediately regreted that last post when I clicked the poet button. It seems more like a partnership instead of a controlling interest and there won't be much change in the WSOR. I Wish William Gardner and the WSOR the best in this transition.
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