Posts Tagged ‘El Paso’

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

Technology is increasingly more common in the battlefield while the future of government funding is becoming more unknown, said White Sands Missile Range’s new Commander Col. John Ferrari.

Speaking at the Greater Las Cruces Chamber of Commerce annual military update luncheon Thursday, Dec. 15, Ferrari said the range’s people are working to keep the range a key player in conducting tests of the new technology while becoming a more efficient military installation.

Ferrari, who became the range’s commander Aug. 18, said it’s all the skilled and creative people who will be making the range successful in meeting the new objectives and roles. He also acknowledged the strong support the range gets from the local population. “In the end, it’s all about people,” Ferrari said. “It’s the people of New Mexico and the people of this community that allow us to complete our national security mission.”

Along with WSMR, neighboring Holloman Air Force Base in Alamogordo and Fort Bliss in El Paso are seeing their missions change and expand. “We’re going to change, because we have to change, because the world around us is changing, too,” he said. High-tech testing will continue to be WSMR’s main mission, he said, and so the base as an organization is looking for ways it can continue to offer value and find new funding. At its current level of operations, he said, WSMR’s contribution to the local economy is estimated to be worth about $1.8 million a day.

NewTec, a company that provides technical support to the range, alone employs about 520 people, said Charles Garcia, company president and CEO. Personnel at WSMR also provide important analysis for the government, especially in the area of countering attacks and protecting systems and weapons from the effects of attacks, he said. That work includes testing building construction and materials to be able to withstand an explosion or finding new methods to detect bombs, he said.

The base has a strong medical community for the more than 900 employees, Ferrari said, who are not only there for the soldiers and the families stationed at the base, but they play a key role in occupational safety along with caring for those who may get injured in testing activities. He said the medical personnel also provide services to local veterans. The range is home to the Navy’s only commissioned naval vessel on land for testing systems before they actually go to sea, he said.

One of the most recent and significant changes for the base has been the addition of the 2nd Engineers Battalion, most of whom have just come back from Afghanistan. Members of the battalion have the dangerous job in war to find and disable or contain improvised explosive devices. Ferrari remarked that most of the battalion is made up of young soldiers who volunteered for the service knowing they would certainly go to war and perform a hazardous job. They do that dangerous work because they trust the technology and engineering, he said.

“We’re creating those systems that they’re entrusting their lives with,” Ferrari said The main base covers 3,200 square miles of land, but “that’s not even enough to do what we do” he said, so a few times a year, the range must ask surrounding ranchers for their help when the testing requires 5,000 square miles. “We’re even doing tests up in Cloudcroft,” Ferrari said. “That’s why we appreciate the graciousness of the people of New Mexico.”

Where much of the past testing has been on missile systems, much of the future testing will be on the reliability of electronic technology in the field and protecting them from being jammed or disabled, Ferrari said. That also includes communications, which is critical to systems such as GPS, he said.

WSMR has a tradition of excellence it must maintain as it adjusts to the changing “fiscal environment,” he said. “We have to protect that brand image,” Ferrari said “We do things here that can’t be done anyplace else, anywhere.”

Besides improving general efficiency, WSMR is training existing employees to be less specialized, he said. The challenge, he said, is to break the military paradigm of caring too much about organizational structure and focusing on accomplishing the mission with the workforce on-hand. That makes the quality of local education even more critical, he said. “We’ll get through this difficult financial environment together, because we will not get through this separate from each other,” Ferrari said.

Article courtesy of the Las Cruces Sun-News

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – “Las Cruces, manufacturing hub!”

Well, southern New Mexico’s largest city might not gain that moniker anytime soon, but the reality of an operating Spaceport America north of town and the start of construction on a $400 million Union Pacific Railroad facility south of town, has spurred increased interest in Las Cruces among manufacturing and logistics companies.

According to a recent quarterly report, the Mesilla Valley Economic Development Alliance says that 65 percent of all new leads are in the manufacturing sector.

“This is a great area to be growing in because manufacturing/logistics generally involves paying local people and local suppliers to make things that people outside the region pay for,” said Christine Logan, economic development administrator for the city of Las Cruces.

L&M Radiator and Alaska Structures both moved into town and created manufacturing jobs. That was welcome news that came on the heels of a stretch last decade in which Las Cruces lost Parkview Metals, Rea Wire Magnet Wire and manufacturing jobs with Taylor Precision Products. “Both of these companies moved from El Paso to Las Cruces,” Logan said. “A big factor was that we had facilities here that they could move into and expand their operations. A recurring theme in the city’s economic development efforts has been the need for existing industrial space.”

Minnesota-based L&M had a facility in El Paso, but outgrew that location and turned its eyes north across the state border. “Our business has seen a tremendous amount of growth over the last year,” L&M Radiator President Dan Chisholm said when the company decided to move. L&M, which makes cooling systems for heavy machinery, is leasing about 52,000 square feet of manufacturing and warehouse space on South Valley Drive.

In addition, TE Connectivity, an electronics component manufacturer, will relocate 100 jobs to its Santa Teresa plant from El Paso. “In the next three years, we’re hoping those 100 jobs grow to 250,” said Jerry Pacheco, vice president of the Border Industrial Association.

According to the city’s most recent economic development report, the manufacturing business category makes up just 1 percent of the businesses and 4 percent of the jobs.

Still, Davin Lopez, president and CEO with MVEDA, said that the area is increasingly showing up on companies’ radar. MVEDA works to bring companies to Doña Ana County and to help those already here expand. “We continue to see manufacturing leads increase as a percentage of total leads developed,” Lopez said. “This category also includes logistics companies. Whereas this category accounted for approximately 39 percent of all leads in the last fiscal year, we have seen it grow to 65 percent of in the first quarter of this year.”

Both Logan and Lopez said that the Union Pacific facility in Santa Teresa plays a major role. “Over the past 12 to 18 months, we have received greater interest from manufacturing and logistics firms due to the Union Pacific announcement,” Lopez said. “A $400-million-plus investment catches attention both regionally and nationally.

“It has enabled us to not only showcase opportunities in and around the Santa Teresa region but also to bring greater attention to the Las Cruces region where we happened to have existing facility space that fits the needs of some of these companies,” he said.

“We are getting more attention lately because, No. 1, we had vacant facilities to accommodate companies,” Logan said. “No. 2, there is pent-up demand for manufacturing space since no one wanted to expand or relocate in the worst of the economy and, No. 3, the proximity to the Union Pacific intermodal facility makes this a great place to locate a manufacturing facility.”

Brook Stockberger can be reached at (575) 541-5457

It is with a great deal of excitement that I present to you MVEDA’s First Quarter results of the 2011-’12 Fiscal Year.  It seemed it would be very difficult to match the performance level and results of our last fiscal year, one of MVEDA’s best years ever.  In the last fiscal year we experienced our second best year ever in terms of job creation.  It was by far our best year ever in terms of capital investment made into the region.  Additionally, it was our best year ever in terms of average salaries created which is a direct impact on wealth creation for the region and its residents (please see attached FY 11 Annual Report).   But if this first quarter is any indication of how the rest of the year will proceed then we will have just as much success to look forward to and with great anticipation.

Let me first start off by saying that the “job” of job creation in economic development takes an organized and consolidated approach and it requires the efforts of many groups working together.  In this respect I want to recognize all the team players that make this possible here in Doña Ana County.  They include the New Mexico Economic Development Department, the New Mexico Partnership, the Border Industrial Association and of course our partners at both the City of Las Cruces and Doña Ana County.  They also include our educational and training partners at NMSU and DACC.  And of course it takes the support of all of MVEDA’s private sector partners.

COMPLETED PROJECTS AND SUMMARY OF ACTIVITY

As of September 30, 2011, MVEDA has assisted in the creation of two new locates representing 279 new jobs to Las Cruces.  They include:

• Vangent, a back office support center based in Arlington, VA.  The company announced the decision in early July of this year and have currently hired over 90 employees to date.
• L&M Radiator, a manufacturer of industrial radiators that recently relocated out of El Paso to Las Cruces.

With these two locates, we are far ahead of production levels compared to this same time last fiscal year in terms of project completion, square footage absorption, employment numbers and capital investment.

MARKETING & BUSINESS DEVELOPMENT

As a result of the several locates that have taken place over the last nine months, the MVEDA staff had spent considerable time and energy in project management functions.   Entering the new fiscal year, we have now returned our focus to the marketing efforts of the organization and the re-building of our project pipeline.  Although lead and prospect generation is slower year-to-date compared to this same time last fiscal year, we are once again beginning to see new opportunities.

We have been quite aggressive in our marketing efforts and reaching out to target markets where we believe there is potential for near term growth opportunities.  At MVEDA’s Board Strategic Planning Retreat in June, the staff outlined the following primary targets:

• Unmanned Aerial Vehicles/Systems (UAV/UAS):  The Las Cruces International Airport is the only municipal airport in the US where UAV’s can be tested in the public airspace.  Along with the expertise in systems operations provided by the Physical Science Laboratory, the Las Cruces region becomes a unique opportunity for UAV companies seeking to not only test but to conduct R&D and assembly operations.

• Logistics & Warehousing:  The announcement of Union Pacific this past fiscal year affords us incredible future growth opportunities and we are taking steps to position ourselves for success in this area.

• Renewable Energy:  Over the past 12 months, MVEDA and the region have experienced tremendous success in the development of solar projects.  We continue to aggressively seek out opportunities in this area.  However, we are seeing a shift in new interest from bio-mass companies exhibited by the growth in research in new fuel related agricultural crops.

• El Paso Market:  Over the last 18 months, Las Cruces and Doña Ana County have benefited greatly from growth pressures in El Paso that are squeezing the industrial base.  Early results have included Alaska Structures and L&M Radiator expanding into Las Cruces as well the recent announcement of TE Connectivity’s consolidation into Santa Teresa.

This quarter, we have also participated in prospect trips to Chicago, Boston, Washington DC and San Francisco.   More recently MVEDA also participated in Virgin Galactic’s Industry Day at Spaceport America and the ISPCS conference.

As evident from the above, we are experiencing renewed growth and interest in the region, primarily in the manufacturing sector.  Eighteen months ago, the City of Las Cruces had over 360,000sf of industrial space sitting idle.   Of that space, 300,000sf is now occupied by Alaska Structures in our West Mesa Industrial Park.  Vangent has taken over the former Frontier Airlines reservations center and L&M now occupies the former Multi-Plastics facility.

The Union Pacific project at Santa Teresa further positions Doña Ana County to be a major hub for future distribution and logistics companies.   More recently, but falling within our 2^nd Quarter activity, TE Connectivity officials along with Governor Susana Martinez announced their plans to consolidate their operations in Santa Teresa thereby making their Doña Ana County facility their largest North American distribution center.  We also expect one to two more announcements before the end of the calendar year.

Again, we cannot accomplish our goals without the support of our partners and stakeholders.  We thank each of you for your continued support and we look forward to continuing the mission of job creation for Doña Ana County and New Mexico.

Davin Lopez

President and CEO

Mesilla Valley Economic Development Alliance

WHAT: Re-Energize the Americas Conference
WHEN: 8 a.m.-9 p.m., Oct. 26; 8:30 a.m.-12:30 p.m., Oct. 27
WHERE: El Paso Convention Center, One Civic Center Plaza, El Paso, Texas

Re-Energize the Americas seeks to spur economic development of sustainable energy resources and activities within the West Texas, Southern New Mexico and Northern Mexico area known as the “Paso del Norte” by helping to capitalize on the region’s abundant natural resources, production capacity and distribution networks.

The conference is a collaborative effort among New Mexico State University, The University of Texas at El Paso and the El Paso-based economic development organization the Paso del Norte Group.

On Oct. 26, El Paso Mayor John Cook and Las Cruces Mayor Ken Miyagishima will open the conference. In addition, NMSU President Barbara Couture will provide an overview of the energy projects being conducted at the university.

The keynote lunch speaker will be Col. Joseph A. Simonelli Jr., garrison commander at Fort Bliss. At the dinner closing the first day of the conference, Hunter Hunt, president and CEO of Hunt Consolidated Energy, will provide the keynote address.

The Re-Energize the Americas conference coincides with the 18th Annual Border Energy Forum sponsored by the Texas General Land Office, which will be held Oct. 27 and 28 at the same location. The two conferences will hold a joint session on Oct. 27.

To request media credentials by noon Oct. 25, please contact Janet Perez at 575-646-4120 or at perezjm@nmsu.edu.