The company leases a 123 miles (198 km) line from the Norfolk Southern running south from Grand Rapids, Michigan, through Kalamazoo, Michigan, to Elkhart, Indiana.

From Kalamazoo to Elkhart, IN they use a former Lake Shore & Michigan Southern branch.

[2][3][4][5] Watco expanded to the Upper Peninsula of Michigan in 2021 when Canadian National divested many former Wisconsin Central Ltd.

[6] This includes a line from Trout Lake to Munising and an out of service line to a former mine in White Pine, both formerly operated by the Duluth, South Shore and Atlantic Railway.

Watco's UP operations are based out of Newberry where they built a new engine house in 2022.