Union Pacific set to break ground on New Mexico facility

Company officials said this effort is possible due to legislation recently passed by the New Mexico state legislature and signed into law by Governor Susan Martinez, which grants Union Pacific a locomotive fuel tax deduction, coupled with a $400 million investment by UPRR.

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Class I railroad carrier Union Pacific Railroad (UPRR) announced this week that it will begin construction on a new rail facility near Santa Teresa, New Mexico in June.

Company officials said this effort is possible due to legislation recently passed by the New Mexico state legislature and signed into law by Governor Susan Martinez, which grants Union Pacific a locomotive fuel tax deduction, coupled with a $400 million investment by UPRR.

They added that the new facility will create roughly 3,000 jobs while it is being built between 2011-2015, with more than 600 jobs based out of the facility when it reaches full capacity in 2025.

And the facility will is located along UPRR’s “Sunset Corridor,” which runs between El Paso and Los Angeles and also serves key locations in Calexico, Mexico, Yuma, Arizona, Phoenix, and Tucson. And UPRR said it will increase throughput along that route and improve our projection capability to points North, East and West.

“The facility will increase throughput along that route and improve our projection capability to points North, East and West,” said UPRR Director of Corporate Communications Aaron Hunt.

UPRR’s Santa Teresa facility is in close proximity to the Santa Teresa Airport on 2,200 acres and will be comprised of:
-fueling facilities; and
-an intermodal yard and an intermodal ramp with an annual lift capacity of up to 250,000 intermodal containers.

Hunt added that the Sunset Corridor is central to UPRR’s business.

“This facility will improve efficiencies and capacity along that corridor,” he explained.. “It has been planned for more than five years. We are thrilled that the Legislature passed and the governor signed this legislation, and we look forward to beginning construction in June of this year. This facility will enhance our ability to provide our customers with premium service. Our operational efficiency and capacity will grow with this facility.”

In 2011, UPRR plans to spend roughly $3.2 billion in capital investments.

UPRR Chairman and CEO Jim Young said in a statement that the company’s strategic investment in this new facility helps improve capacity and enhance efficiency on a key part of the UPRR network, while also demonstrating its long-term commitment to deliver premium service to customers,”

“Investments of this kind are guided by our mission to serve and are leading to new business and record levels of safety and customer satisfaction,” said Young.

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About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

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