(The Pittsburgh Tribune-Review posted the following article by C.M. Mortimer on its website on May 7.)
PITTSBURGH, Pa. — J&L Specialty Steel, a flat-rolled stainless steel manufacturer based in Coraopolis, said Tuesday that it sold its Pennsylvania Southwestern Railroad, a shortline carrier in Beaver County, to Kansas-based Watco Cos. Inc., one of the largest privately held shortline rail company in the United States.
Pennsylvania Southwestern Railroad employs about 30 workers and primarily handles steel scrap and steel products from J&L’s plant in Midland, Beaver County. Terms of the deal were not disclosed.
“We view this as a strategic opportunity and growth platform to gain rail customers in southwestern Pennsylvania, Ohio and West Virginia. We were also impressed with the work force. The people who were included in the deal are our kind of people,” said Rick Webb, chief executive officer for Watco, based in Pittsburg, Kan. The company operates seven railroads spanning 2,500 miles of track in 10 states, employing 800 people.
Webb said Watco took over the Pennsylvania Southwestern operations April 1. He also said the acquisition represents the company’s first railroad east of the Mississippi River. It is the first Watco operation that connects with Norfolk Southern and the first operation primarily serving a steel mill.