Project to bring 3,000 construction jobs, 600 operational
Article courtesy of Las Cruces Bulletin
By Gabriel Vasquez
Gov. Susana Martinez returned to Doña Ana County for the first time since being sworn in as governor to announce a rail-expansion project that could bring more than 3,000 construction jobs and 600 permanent, post-construction positions near Santa Teresa. The announcement was made Friday, Jan. 7, alongside Union Pacific (UP) officials during a well-attended ceremony held inside an industrial office complex adjacent to the Santa Teresa Airport.
“I’m honored to (be) here to renew the commitment the state of New Mexico made a few years ago to improve the infrastructure and create jobs in the southern part of the state,” Martinez told the crowd of area politicians, industry leaders, state workers and reporters. “These jobs would otherwise go to Texas.”
UP’s investment for the rail expansion is $400 million. UP officials said the project would have an overall economic impact of $500 million on the state. The plans are to expand a rail station near Santa Teresa to add fueling facilities, crew headquarters, an intermodal switching yard and an intermodal ramp for business access.
This sort of “inland port” will facilitate the movement of goods all across the Southwest, but specifically will help border businesses by providing a “truck-to-train” facility in the area, significantly spurring economic development in New Mexico, said Bob Turner, senior vice president of corporate affairs for UP.
“I predict that this will be a catalyst for economic growth the likes of which will amaze you all,” he said. “The goods will come in, be offloaded, re-sorted and shipped to various parts of the country.”
The transfer facility will place southern New Mexico on UP’s “Sunset Route,” one of the oldest rail corridors in the country, which spans from California to Texas. Other Sunset Route facilities similar to the one planned for Santa Teresa exist in Lathrop, Calif., Los Angeles, Dallas and San Antonio, Texas.
“In order for New Mexico to recover economically, we need to take deliberate action and begin gaining back jobs we’ve lost to our neighbors,” Martinez said. “That’s one of our driving forces for the policy decisions being made by my administration.”
Although UP officials are optimistic about the project, it has one more hurdle left to clear. The project is largely dependent on a locomotive diesel fuel tax exemption that will go before the state Legislature when it convenes later this month.
“All that stands in the way from this taking place and moving the project forward … is a legislative fix,” said Martinez, who added she strongly supports the exemption. “As a result, Union Pacific can start building and New Mexicans can start working.”
Martinez added that she encouraged all state legislators “to dot their ‘i’s’ and cross their ‘t’s’ for the project to move forward.
State Sen. Cynthia Nava, who attended the ceremony, said she would support the diesel tax exemption.
“I’m willing to work with all my colleagues to get this job done,” Nava said. “I would assure the governor that we are dotting and crossing and we will get this exemption so this project can move forward. It’s been a long-time coming.”
Aaron Hunt, director of media relations for UP, said the company would have to “strongly re-evaluate” its options if the diesel tax exemption is not passed.
“Historically, we have invested a lot of resources on this part of our system,” Hunt said. “There’s 100 years of history here.”
When UP’s intentions to expand the Santa Teresa rail were first announced in 2006, the state passed a diesel fuel tax exemption accordingly, but it expired in 2010. Due to the economy, which dealt a hard blow to UP in 2008, the project was subsequently delayed with no timetable to move forward. UP officials hope now the Legislature makes the same decisions in 2006.
Theresa Fisher, director of the Anthony Chamber of Commerce, said the project could be beneficial for the whole state.
“This opportunity is excellent not just for Santa Teresa and Sunland Park, but Anthony, as well as the entire state,” she said. “There will be opportunities for employment for our people, and it helps us with economic development and marketing here.”
Fisher, who owns an 8-acre vineyard, is building a wine tasting facility near Anthony and hopes UP will bring future customers as new businesses come to the area to take advantage of the transfer station.
A groundbreaking will be held sometime this summer when construction starts, not with shovels, “but something more exotic,” Turner said. Construction is expected to take place until 2015.
For more information, visit www.up.com.
