Archive for the ‘Borderplex Expansions’ Category

Article courtesy of the Las Cruces Bulletin, by Samantha Roberts

Union Pacific, which recently began construction of an all-new rail facility outside Santa Teresa, announced a $100,000 donation to Doña Ana Community College as part of Las Cruces Day in Santa Fe during a press conference Monday, Jan. 30, at the Roundhouse in Santa Fe.

The donation, which Zoe Richmond, UP director of public affairs, said was given to DACC to use as the institution sees fit. However, the underlying message at the press conference was creating jobs to sustain UP’s new intermodal facility.

“Doña Ana Community College is excited to be the recipient of such generosity from Union Pacific,” said DACC President Margie Huerta. “We plan to use the funds for scholarships and workforce development to ensure our students have the knowledge needed to qualify for the jobs this new facility will bring to the region.”

There were several key players who helped make the donation a possibility, including Sens. Cynthia Nava and Mary Kay Papen, Rep. Mary Helen Garcia and New Mexico Economic Development Secretary Designate Jon Barela as well as Mesilla Valley Economic Development Alliance CEO Davin Lopez and Border Industrial Association Executive Director Jerry Pacheco and Juan Massey.

“Union Pacific and Doña Ana Community College is an example of a great private-public partnership,” Lopez said. “We are proud to be a part of this.”

“Right now, we are moving 4.1 million cubic yards of dirt,” Richmond said about developments in Santa Teresa. “We hope this donation strengthens our long-term commitment to southern New Mexico.”

As another part of Union Pacific’s commitment to grow New Mexico, Richmond said seven of the 10 subcontractors working on the project are from New Mexico, which translates to 66 percent of $40 million that has been spent in the Land of Enchantment. The intermodal facility is expected to be completed by 2015, bringing in 600 permanent high-paying jobs.

“The average employee will be making $100,000 in wages and benefits,” Richmond said. “We like to say where we have rails, we have ties.” Richmond said UP chose DACC as a recipient because “DACC is a neighbor” and she is looking forward to a good working relationship with the community college.

“Thank you for your generosity,” Huerta said during the press conference. “The Greater Las Cruces Chamber of Commerce as well as many others have given their help and been so supportive – Davin Lopez, Jerry Pacheco, Juan Massey, (Rep.) Terry McMillan.

“Donations like this will have an immediate impact on southern New Mexico. Developing the workforce in southern New Mexico is critical, and this gift of $100,000 is a huge investment and will yield positive return. “In Doña Ana County, we work with a collaborative spirit to improve the community.”

Nava, former superintendent of Gadsden Independent School District, said the example set in southern New Mexico is remarkable. “The rest of the state should listen,” Nava said. “I fought to get Union Pacific here, and I will fight to hold them accountable to their promises. This check is a great start, and it is about jobs, economic development and the opportunity for students to succeed.”

To help bring UP to southern New Mexico, Gov. Susana Martinez signed into law in 2011 a bill granting Union Pacific a locomotive fuel tax deduction that allowed the company to move forward with an investment of $400 million in the construction of a 2,200-acre rail facility west of the Santa Teresa Airport, which will include fueling facilities, crew change buildings, locomotive inspection tracks, an intermodal ramp and a switching yard.

“This new facility will strengthen our long-term commitment to deliver premium service to our customers,” said Scott Moore, vice president of public affairs for Union Pacific. “Upon completion of this new infrastructure, New Mexico will take its place among the leaders in the goods movement industry.”

A key player in getting the locomotive fuel tax deduction bill passed was Barela. When the bill was passed, Barela called it “a cornerstone to creating jobs in southern New Mexico.”

“Doña Ana County has great potential and thank you to our great corporate neighbor – UP,” Barela said. “The facility is a solid anchor project on the entire Mexico border – all 2,000 miles of it.”

A view of the Union Pacific site, looking east with the Airport, Santa Teresa, El Paso and the Franklin Mountains in the background. Photo courtesy of Suzie Azar.

Release courtesy of Union Pacific Railroad.

The passage of the Locomotive Fuel Tax Deduction HB523/SB179 by the New Mexico state legislature and signing into law by Governor Martinez was the catalyst that allowed Union Pacific Railroad to break ground on a state-of-the-art rail facility in the southern part of the state. With an overall economic impact of $500 million for the New Mexico economy, Union Pacific’s investment in the project totals more than $400 million. The facility will create 3,000 jobs during the construction phase from 2011 to 2015, and will eventually be headquarters for more than 600 permanent jobs. For the first time ever, southern New Mexico will have a key inland port, positioning the Santa Teresa area as a strategic focal point for goods movement in the southwestern U.S.

Phase 1 Construction

The Phase 1 construction launch occurred on August 8, 2011. Phase 1 will continue through 2012. Rangar-Benson received the first construction contract and will complete the mass grading in which approximately 5.6 million cubic yards of dirt will be excavated and 4.1 million cubic yards of dirt will be placed. This phase will also extend approximately two miles of Dona Aña County public water and sanitary sewer lines that will serve the facility. This work is scheduled to last approximately one year.

Seven of the ten contractors on the project are New Mexico based, totaling $40 million worth of contracts, more than 66 percent of the Phase 1 contracting.

340 people have been working on the site at any given time to date during the Phase 1 construction process with more than 50 percent of those hailing from New Mexico.

Phase 2 Construction

The second phase of construction will commence after Phase 1 and will complete the remaining portion of the yard to include all the mechanical, electrical, architectural, utilities, track and civil engineering portions of the project.

As part of the contract, there is an expectation that the general contractor will consider New Mexican subcontractors and also look for opportunities to hire qualified New Mexicans.

Global Economy Demands Efficiency

The construction of the Santa Teresa facility will permanently position Southern New Mexico as a crucial component of the historic “Sunset Route,” one of the oldest and most critical rail corridors in American history, securing New Mexico’s future as a leader in the goods movement industry. Union Pacific’s initial plans for capital spending in 2012 total $3.6 billion in support of America’s freight transportation needs. That investment will continue enhancing the safety and efficiency of Union Pacific’s 32,000-mile network. The resulting improved rail capacity benefits everyone. It allows freight rail service to grow, helping to build a cleaner environment. According to the U.S. Environmental Protection Agency, freight trains are nearly four times more fuel efficient than trucks.

About The Project
Fueling Facilities – Located along the busy “Sunset Route” between El Paso and Los Angeles, this fueling facility will enhance commerce and goods movement in the state of New Mexico.

Crew Change Buildings – This facility will eventually serve as home base for Union Pacific employees operating long-haul trains out of the area.

Intermodal Ramp – This regionally focused intermodal ramp will permit both local and regional businesses more immediate access to the efficiencies of freight trains.

Article courtesy of the Las Cruces Bulletin, by Todd G. Dickson

With Virgin Galactic developing its spaceliner and new launch testing at Spaceport America, the first jobs created by the spaceport are coming, members of a panel said.  At the Greater Las Cruces Chamber of Commerce community update forum Tuesday, Jan. 10, at the Doña Ana County Government Center, Wayne Savage of the chamber’s spaceport committee said the forum was about making Spaceport America bring about the promise of jobs. We’re beginning to see things take place, and we’re seeing opportunities show up, and that’s what we’re here for,” Savage said.

Chad Rabon of the New Mexico Spaceport Authority (NMSA) said the first phase of construction on the $209 million spaceport between Las Cruces and Truth or Consequences is almost complete. To get Spaceport America ready for business with a runway, vertical launch area, several support facilities and the terminal hangar for its anchor tenant Virgin Galactic. NMSA is now starting the spaceport’s second construction phase, which Rabon said includes paving the southern road leading to the complex. It was recently announced that the surfacing of the already wide and well-grated county road won’t require time-consuming environmental studies.

Spaceport America operations are located the Lewis Cain Ranch and is surrounded by similar desert range ranches 45 miles north of Las Cruces.

The next construction phase includes adding more pads and support facilities to the spaceport’s vertical area, Robin said. NMSA is currently accepting bids on contracts to provide information technology and space operations support.

Already, activity at NMSU is picking up for research and development of new systems, such as reusable rocket boosters, with Lockheed Martin winning an Air Force contract to test its design for such a system at Spaceport America.

NMSA’s Aaron Prescott said Armadillo Aerospace has tested more traditional rocket prototypes with three launches since May. Also, Boeing will test a helicopter avionics system at the spaceport, he said. The new construction will provide a second pad for vertical launches and rollback shelter for these kinds of tests, Prescott said. The current Spaceport America vertical launch facility was developed for UP Aerospace that has been launching sounding rockets since 2006 to send a variety of small payloads into suborbital space.

With the State Legislature about to start its new session, Prescott mentioned spaceport supporters are pushing for refining the 2010 law that protects companies such as Virgin Galactic from lawsuits as something goes wrong with a flight carrying passengers. The informed consent legislation didn’t extend those protections to suppliers of the spaceship companies, but competing states have passed protections granting protections to support industries.  “It doesn’t help us very much to protect the operator, but not the supplier,” Prescott said. “This is key for Spaceport America to remain competitive with other states.”

Mark Butler of Virgin Galactic, who moved from England to New Mexico, said the company is making progress on the safety and flight testing of its prototype of the kind of thrilling but- upscale suborbital flights it plans to give passengers for $200,000 a ride.  The craft that will carry the six-passenger spaceship to 50,000 feet for midair launches, the White Knight 2, has completed about 80 flights reaching important altitude and duration goals, Butler said.

Testing has begun with Spaceship 2 more than 15 “captive carry” flights and 16 release and- glide tests, Butler said. The hybrid engine – the world’s largest such engines – is being tested, he said, and the company won’t start taking passengers into space until the system performs safely, he said.  “We are now pushing the envelope on that system,” Butler said. “Yes, this is rocket science, so it takes a while. … This kind of thing does take a long time, and this is the first time this is being done so we are going to take the time to do it right.”

Butler reported that five Virgin Galactic staff members are now using office space in Las Cruces.  Once the flights begin on a regular basis, Butler said Virgin is going to need human resources and financial people, all the normal behind-the-scenes people. Also, there will be people hired to provide a variety of customer services, he said.  The space business goes beyond needing engineers and other technical staff, but also hospitality and other support staff, Butler said. Virgin does intend to buy local supplies as much as possible, he said.

“It’s important for us to get our supply chain to New Mexico,” Butler said.  With $60 million in deposits and more than 500 signed up as future astronauts, Virgin has “a hugely busy year ahead of us,” he said. To work for Virgin, Butler recommended patience and persistence.

Meanwhile, Fiore Industries won the contract for providing protective services to the spaceport, including security, EMS, fire protection and hazardous materials control. Fiore’s Tim Zagorski said the company is hiring people with local experience and subcontracted with local entities such Sierra Vista Hospital and the Las Cruces-based Zia Engineering “We strongly believe in local economic development,” he said “ We even rent power generators from a local company and buy fuel locally.”

Fiore will be looking to buy fire equipment, EMS vehicles and equipment in the near future, he said, and the company is seeking applicants for security guards, firefighters and EMTs. The company will need 15 security guards and 15 firefighters/EMTs, along with some office and compliance support, he said.

Also at the forum was Paul Schmidt of EASI, general services contractor, that will be running spaceport functions, such as water and wastewater, fuel depot operations, electrical systems, roads and grounds upkeep, runway maintenance, generator maintenance and repair, janitorial services, pest control and even HazMat clean-up and removal.

Article courtesy of the Las Cruces Bulletin

By Marvin Tessneer

Sapphire Energy is constructing an integrated algal bio-refinery (IABR) to produce green crude oil on a site near Columbus, N.M., in Luna County, the first commercial facility in the country, according to a company newsletter. Sapphire, which is headquartered in San Diego, also operates a 22-acre test and development facility in Las Cruces’ West Mesa Industrial Park.

 Sapphire has scheduled a multi-year project to produce green crude. The first production phase will start this summer. By 2014, the company expects the Columbus IABR facility to produce 100 barrels, or 1 million gallons of fuel a year, according to Sapphire.

The Columbus IABR facility is expected to provide 700 jobs during construction and 30 permanent jobs for continued operations. Sapphire has designed raceway ponds at Columbus to grow algae that will cover 100 to 300 acres. In the energy business, the operation is termed “farming under water.”

Government agencies believe Sapphire is on the right track to grow and harvest algae and produce green crude. The U.S. Department of Energy has awarded the company a $50million grant and the U.S. Department of Agriculture has guaranteed a $54.5million loan, according to Sapphire.

Most people consider green mass seen on ponds “green gunk.” But Sapphire is developing that green gunk, or algae, into a renewable and sustainable transportation fuel that will help reduce the nation’s dependence on foreign petroleum.

“All of us on the research and development side are rooting for Sapphire to have tremendous success at its commercial demonstration facility at Columbus,” said Pete Lammers, New Mexico State University biochemistry professor.

Algae are a micro-organism that combines sunlight and carbon dioxide from the air as sources of energy to produce green crude oil. Scientists report algae can produce 10 times or more energy per acre than other bio-fuels crops. Algae don’t compete with food crops. Land at the Columbus site is marginal for crops, and the water is brackish and not suitable for irrigation.

The algal green crude is termed “drop-in” fuel in the industry. The Sapphire newsletter reported, “Sapphire Energy has cultivated algae that create renewable crude oil that can be processed in existing refineries into jet fuel, diesel and gasoline. These drop-in replacement fuels are molecularly identical to petroleum-based fuels and are compatible with existing infrastructure and engines.”

Article courtesy of the Las Cruces Bulletin

By Samantha Roberts

As 2011 comes to a close, businesses are rushing to make end-of-the-year deadlines, including renewable energy certificates (REC) for solar that will change in 2012.

F&A Dairy Products will be expanding its solar systems, adding four 100kilowatt units to the existing unit the dairy installed in May. “The four additional units will fuel different parts of the complex and will be located next to the existing unit,” said Bob Snyder, vice president of New Mexico operations for F&A Dairy. Snyder said the dairy decided to add the additional solar now, so it could take advantage of incentives that will expire in 2011.

“RECs are at a peak right now,” said Mellow Honek, a managing member of Sunspot Solar Energy Systems, which installed the panels at the dairy. “They are great right now, but they will still be good next year. The incentives are not going away, but will be changing. “I would definitely recommend other people (add solar). It’s a step in the right direction toward energy independence. And we have an abundance of sunshine here.”

“We thought if we were going to do it, it better be this year,” Snyder said. “The panels significantly offset the energy we use. “Solar does create enough energy to make a difference.”

Though the dairy uses too much energy to be entirely generated by solar, Snyder said the panels will help “take out some of the peaks.” “This is just to offset costs,” he said. “A dairy is a big place, and we use a lot of utilities to process the milk into cheese.”

Honek said the amount of solar the dairy will have after construction on the additional panels is completed in March 2012 will be equivalent to 100 solar systems on mid-sizes houses. “To my knowledge, the one 100-kilowatt unit the dairy has now is the largest commercial system on a privately owned building in New Mexico,” Honek said. “The system after everything is completed will be five times that size.”

Honek said installing all of the panels will take about 1,300 man hours. “The dairy has been a great customer, and they are a perfect example of a company that is making an investment in a major resource we have here,” Honek said. “Powering a portion of their plant using solar shows what is possible for businesses to do to reduce long-term energy costs.”

The dairy doubled in size a little more than one year ago and now employs about 140 people. “We are constantly making changes,” Snyder said. “Our goal is to get both plants running to full capacity.”

F&A Dairy distributes its products to Toucan Market and other distributors. Locally, Dion’s Pizza is a purchaser of F&A Dairy products.

The Future of Dairy in New Mexico

F&A Dairy is one example of growth the dairy industry in New Mexico has seen over the past few years. “Southern New Mexico is a major player in the dairy market,” said Jeff Witte, director/ secretary for the New Mexico Department of Agriculture (NMDA).

“Southern New Mexico dairies have an abundant milk supply,” Snyder said. “Farmers are leaving California and coming to New Mexico and the Texas panhandle.”

Milk production in New Mexico averages more than 600 million pounds per month, according to the NMDA. New Mexico currently has 173 dairy farms, with a large number of them in eastern New Mexico. There are 20 processing plants in the state.

“Dairy in New Mexico saw growth in the eastern portion of the state from 2008 to ’09,” said Robert Hagevoort, extension dairy specialist with New Mexico State University. Hagevoort said cheese plants in Clovis, N.M., and Dalhart, Texas, spurred this growth. “There are benefits in New Mexico for the dairy industry,” Hagevoort said. “There is a lot of agriculture in New Mexico, so farms can grow the feed that dairies need, and they, in turn, can supply the farms with fertilizer. “There is a natural free flow from each one.”

Hagevoort said dairies also use marginal farmland so they don’t compete with other crops. However, dairies are struggling with drought conditions, high feed costs and corn prices that are increased from ethanol demands. “Depending on world economy, the future of dairy in New Mexico is still great,” he said. “It all depends on larger economic factors beyond our control. Linking energy to food policies doesn’t make any sense.”