PITTSBURG, Kan. — Watco Cos., the rail and transportation logistics company that operates some 45 short lines, has received a minority investment of more than $600 million from Duration Capital Partners, the companies announced today (June 17, 2025).
The investment will be used to address Watco’s long-term strategic investments, the company said, including assuming full ownership of Industrial Rail Services, rail operator at six Dow Chemical facilities in the U.S. and Canada [see “Dow to sell rail operations …,” Trains News Wire, July 6, 2020]
“This investment from Duration is not just capital,” Watco CEO Dan Smith said in a press release. “It’s a long-term vote of confidence in our people, our strategy, and our future. We’re grateful for their trust and energized by the opportunity to continue to grow with our customers.”
The two firms have partnered on multiple transactions since 2018, with a shared commitment to investing in transportation infrastructure.
“This investment is a testament to the strength of our partnership with Watco,” said Duration co-CEO Josh Connor. “Watco exemplifies the type of company we want to support for many years to come—focused on safety, customer service, and operational excellence.” Added co-CEO Emmett McCann, “Our relationship has grown into a deep collaboration, and we have helped many customers expand their businesses. Watco is a world-class operator, and we are proud to be their long-term partner.”
Duration, a private investment company focused on North American transportation infrastructure, was founded in 2024 as a spin-out from Oaktree Capital. It managers more than $4 billion in assets involving ports, rails, and information. Visit their websites for more information on Watco and Duration.
will we have to worry that the company will get so large that a take over might try to milk the company of assets just like the class 1s?