UP starts work in June on New Mexico facility

Thanks to a locomotive fuel tax deduction granted by the state, Union Pacific will move ahead in June with construction of a major new rail facility near Santa Teresa, New Mexico. 

UP’s announcement late Tuesday followed the signing by Gov. Susana Martinez of a bill passed by the New Mexico Legislature granting the deduction.

New Mexico stands to benefit hugely from the project. UP said the facility will create approximately 3,000 jobs during the building phase from 2011 to 2015. More than 600 jobs will be based at the facility when it reaches full capacity in 2025. The estimated overall economic impact for New Mexico exceeds $500 million. 

The facility will be located just west of the Santa Teresa Airport on 2,200 acres and will include fueling facilities, crew change buildings, an intermodal yard, and an intermodal ramp with an annual lift capacity of up to 250,000 intermodal containers.

“Our strategic investment in this new facility helps improve capacity and enhance efficiency on a key part of our network, while also demonstrating our long-term commitment to deliver premium service to our customers,” said Jim Young, Union Pacific chairman and chief executive officer. “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.”