Watco Cos., the rail and transportation logistics company that operates 45 short lines, has received a minority investment of more than $600 million from Duration Capital Partners, the companies announced Tuesday.
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 United States and Canada.
“This investment from Duration is not just capital,” Watco Chief Executive Dan Smith said in a 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-off from Oaktree Capital. It manages more than $4 billion in assets involving ports, rails, and information.
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