Article courtesy of El Paso Times
By Ramon Bracamontes
SANTA TERESA — Union Pacific is poised to expand its operations in the El Paso region by building a new $400 million railroad hub in Santa Teresa that is expected to provide Southern New Mexico with a $500 million economic boost, officials said Friday.
Construction of the hub will begin this year if the New Mexico Legislature approves a locomotive fuel tax exemption for Union Pacific.
The company’s plans were announced Friday by New Mexico Gov. Susana Martinez during a press conference with Union Pacific officials in Santa Teresa. Neither the governor nor Union Pacific said how much that tax exemption was worth.
They said only that Union Pacific pays a lot in fuel tax in New Mexico.
Martinez said she is already working with the Legislature to approve the tax break.
“I am here to honor a commitment the state of New Mexico made three years ago,” Martinez said.
She said she is hopeful the Legislature will approve the tax exemption, which will allow “Union Pacific to start building and New Mexicans to start working.”
The railroad and New Mexico officials originally announced plans for the project in 2006. It was halted after Union Pacific encountered problems acquiring the land, and the effort slowed when the national economy stalled.
Now that Union Pacific is prepared to spend $3.2 billion to improve its operations nationwide, the company is ready to invest in Santa Teresa, said Aaron Hunt, spokesman for Omaha, Neb.-based Union Pacific.
Construction of the facility is expected to create 3,000 jobs from 2011 to 2015. About 300 permanent jobs will remain after the hub is built.
The company’s plans include moving some of its fueling and maintenance operations from El Paso to Santa Teresa.
However, Union Pacific will keep its El Paso rail yards and its cross-border rail service between El Paso and Juárez, Hunt said.
“We are not leaving El Paso,” Hunt said.
“To be able to expand, we need to do it here. Everything you see in El Paso will remain. And everyone who has a job in El Paso right now will have one in 2015.”
The only major change is that some of those employees may have to work in Santa Teresa, instead of Downtown El Paso.
Sunland Park Mayor Martin Resendiz said the new hub will go a long way toward improving the economy in his city and in Santa Teresa.
“We’ve been waiting for years for this project to begin,” Resendiz said.
“It will help the entire region.”
Union Pacific’s new hub is about one mile northwest of the Santa Teresa Port of Entry and adjacent to the Verde Realty industrial park that abuts the port of entry.
The 23-acre hub includes a new fueling facility, crew-change buildings and a switch yard.
Verde Realty official Justin Ruby did not want to comment on what the hub means for the commercial parks, its tenants and future development.
“We are very excited to have Union Pacific here and next to us,” Ruby said.
For years, Verde Realty has been working with New Mexico’s elected officials to expand and develop the area around the Santa Teresa Port of Entry.
In 2005, U.S. Sen. Jeff Bingaman secured $14 million to aid in the construction of roads leading to the Union Pacific facility, which has been on hold for the past few years. That money remains available for the project.
Bingaman also worked with the U.S. Bureau of Land Management to expedite a land exchange with the New Mexico State Land Office in order to provide the land needed for the facilities.
“This inland port will give New Mexico a stake in one of the most important rail corridors in the country,” Bingaman said. “In the long term it will enhance New Mexico’s standing as a great place for commerce.”
Ramon Bracamontes may be reached at rbracamontes@elpasotimes.com; (915) 546-6142.
