Watco Australia

On 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 (now Aurizon). 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]

On 13 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 is 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 link 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 transports 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 3 ft 6 in (1,067 mm) 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 will commence operations in Queensland under a seven-year contract with GrainCorp. Eight locomotives from the National Railway Equipment Company and 128 wagons from China have been ordered.[28]

Watco as the operator for CBH railway operations is outlined in news stories following the agreement finalization on the first of November 2019, and the list below:[29] The agreement involved keeping the Miling railway line open, and all other tier 3 railways closed, and allowing CBH access until 2026.[30][31][32][33]

June 2012 - Operations by CBH/Watco commence

October 2013 - Merredin-Trayning and York-Quairading lines closed

December 2013 - CBH seeks access under Rail Access Code

January 2014 - CBH seeks injunction to gain pricing and costs information

June 2014 - tier 3 lines closed

October 2019 - Rail arbitrator agreement given to CBH and Arc

November 2019 - Agreement finalised.

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