Iowa Pacific Holdings

Watco Companies purchased two west Texas shortlines from Iowa Pacific Holdings, LLC, May 18, 2015. Watco Transportation Services (WTS) entered into a definitive agreement to acquire the Texas and New Mexico Railway and the West Texas Lubbock and Western Railway.

The Texas and New Mexico Railway extends from a Union Pacific connection at Monahans, Texas, to Lovington, New Mexico. The railroad serves the oil fields of west Texas and southeast New Mexico. The primary commodities shipped on the line are oilfield chemicals and minerals, construction aggregates, industrial waste and scrap.

The West Texas Lubbock and Western Railway is divided into two segments; the most northern segment runs from just north of Dimmitt, Texas, to Plainview, Texas and the second segment runs west from Lubbock, Texas, to Whiteface, Texas and southwest from Lubbock to Seagraves. The West Texas Lubbock and Western Railway ships commodities such as fertilizer, construction aggregates, grain, cotton, chemicals, peanuts and plastics.

“We see this addition of the two Permian Bain lines as a tremendous growth opportunity for Watco,” said Stefan Loeb, executive vice president and chief marketing officer. “These two new railroads are a perfect addition to allow us to better serve our Texas customers.”