PITTSBURG, Kan. — Dan Smith chuckles at inevitable references to “electric trains.” Smith, the chief executive officer of Watco, said the company’s award of $17.7 million in federal funds to convert eight of its locomotives into fully battery-powered units is just one piece of an important package of awards that will not only help the company become more energy efficient, but will also help it make significant track-related improvements.
On Tuesday, Gov. Laura Kelly announced that Watco and its subsidiary, the Neodesha Subdivision of the South Kansas & Oklahoma Railroad (SKOL), will receive a total of $47 million in federal funding for locomotive conversion and rail improvement projects as part of the Bipartisan Infrastructure Law (BIL).
“We’re blessed to own railroads, really, all over the world, but especially in the U.S. and serving many rural communities,” Smith said. “Some of those railroads had significant infrastructure needs when we acquired them, and we’ve been making improvements. There are long stretches of rail and bridges that need attention.”
Smith said Watco is excited to be a leader in the conversion of certain locomotives to battery power.
We’re out in front of it,” Smith said. “We have a good partner from India on this and we think we’ve come up with a pretty good ‘mousetrap,’ but that’s not going to take us away from our core mission and that’s serving our customers.”
Smith said the federal support, through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program is important for companies like Watco.
“The CRISI program is helping us achieve greater efficiency for our customers,” Smith said. “We have tremendous gratitude for our partnership with KDOT in helping secure this critical funding to make these improvements possible.”
Smith said the awards announced Tuesday are the most recent of a number of awards that Watco has received through the CRISI program, totaling more than $95 million.
In making the announcement Tuesday, Kelly noted that the Federal Railroad Administration (FRA) is investing $1.4 billion in 70 rail improvement projects in 35 states. It is the largest amount ever awarded for rail safety and rail supply chain upgrades through the CRISI program. Nearly two-thirds of this round of CRISI funding is being directed to rural communities, according to a release from the governor’s office.
Projects selected through the CRISI program support community safety through track improvements, bridge rehabilitations, fewer highway-rail grade crossings, upgrades on routes carrying hazardous materials, reduced emissions, and more.
“The selected projects will result in faster and more reliable deliveries of goods, safer communities, cleaner transportation, and more jobs and workforce development opportunities for Kansans,” said Cory Davis, Director of KDOT’s Multimodal Transportation and Innovation.
Kansas - 2023 CRISI projects
- kWat: Electrifying Watco Locomotives Project (Up to $15,740,943) – The project involves final design and construction to convert eight locomotives into fully battery-powered units to be deployed across Watco’s short-line railroads in varying operational and geographic environments. The project will improve system and service performance and reduce emissions and maintenance expenses. Watco is providing a 20 percent match.
- Southeast Kansas Short Line Rail Upgrade and Growth Project (Up to $31,225,484) –The project will improve approximately 37 miles of South Kansas & Oklahoma Railroad track, improving operations and capacity. CRISI funds provide SKOL the ability to increase load-carrying capacity to meet customer demand. KDOT and SKOL will provide a 20 percent match.
