Multimodal Strategy Supports Customer Growth
When rising trucking costs threatened a manufacturer’s growth strategy, Watco delivered a customized rail and truck solution that reduced transportation costs and supported expansion into new markets.
CHALLENGE
A Wisconsin-based animal feed manufacturer had historically relied on over-the-road trucking to move product to nearby customers. While trucking remained effective for regional distribution, escalating long-haul transportation costs created a major barrier to growth.
To successfully expand into distant markets such as Washington, California, and Texas, the manufacturer needed a more sustainable and cost-effective transportation strategy.
SOLUTION
The solution began at Watco’s Oshkosh Transload Terminal, where the customer’s product was transferred from truck to rail. From there, freight moved via the Wisconsin & Southern Railroad to multiple Class I interchange points for final delivery into key growth markets. Throughout the process, Watco’s technology platform provided real-time shipment visibility and proactive freight monitoring.
In addition to designing the transportation strategy, Watco helped the customer navigate several operational challenges associated with using rail for the first time. The Watco team:
- Secured tank car capacity during a nationwide equipment shortage
- Provided guidance on railcar lease obligations and best practices
- Managed railcar flow to help avoid unnecessary demurrage charges
- Trained the customer’s team on safe and efficient truck-to-rail transloading procedures
By partnering with Watco, the manufacturer successfully expanded into new geographic markets while keeping transportation costs within budget. The multimodal solution created a scalable, long-term shipping strategy that improved supply chain efficiency and supported continued business growth.
Rail can be daunting to customers that lack the in-house experience to navigate it. A rewarding aspect of providing this level of service is becoming a trusted adviser and understanding the customer’s business in a way that ultimately empowers growth.”
Barth West
Watco Vice President of Logistics