Watco Companies has reached a definitive agreement with Kinder Morgan Terminals (KMT) to purchase 31 terminal operations in the US that span from Stockton, California, to Brooklyn, New York.
Watco Terminal and Port Services will be operating the 31 locations including 14 traditional rail to truck transload and switching facilities, 13 operations on inland waterways servicing bulk and break-bulk customers to and from barge, truck, and rail, three sites providing deepwater stevedoring with material handling activities and one inland river tank farm. Consideration for the terminals is provided through an equity interest exchange with closing occurring in multiple phases beginning in the first quarter of 2015.
‘The Watco team is excited to expand our outstanding relationship with KMT and to position operations in a manner that best benefits our mutual customers,’ says Watco president Rick Baden. ‘This is an expansion of Watco services that will bring several great connections between terminals, ports, and railroads. We think this has strong growth opportunities for each of these locations, their customers, and the communities they serve.’
‘We see this portfolio of transload, rail switching, and terminal facilities as a tremendous growth opportunity for Watco,’ says Watco COO Dan Smith. ‘We have restructured our operations and marketing efforts, in anticipation of the transaction, to immediately begin work on expanding our service offerings to the customer base of these facilities and see many opportunities to grow with our customers at these locations.’