Posts Tagged ‘Union Pacific Railroad’

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 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

Article courtesy of the Las Cruces Sun-News

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – Manufacturing is not dead. That was the message Davin Lopez, president and CEO of the Mesilla Valley Economic Development Alliance, gave a breakfast audience at Hotel Encanto de Las Cruces on Thursday. MVEDA’s annual breakfast allows the private/public entity to give report for the recently completely fiscal year.

“It’s a tough time to talk about the economy,” Lopez said. “(And) we’ve been feeling it for the last couple of years.”

Still, the economic development group reports that lead development remains strong and there has been a “significant” jump in terms of manufacturing.

“Almost 45-percent of our leads are in manufacturing and logistics,” Lopez said. “We are hearing that heavy manufacturing is coming back to America.”

He pointed to the addition of Alaska Structures at the West Mesa Industrial Complex. The Anchorage-based company which makes shelters for the military as well as commercial customers, moved into a 184,000-square foot building that used to house Rea Magnet Wire, and also uses about 100,000 square feet at the previously empty building at 8500 Mountain Vista Parkway where Parkview Metal Products used to reside.

“If you think back 12 to 18 months ago, think of all those facilities sitting vacant,” Lopez said.  In fact, he said the Las Cruces area could use more spec buildings. “The biggest challenge we have going forward is we need more buildings,” Lopez said.

In addition, capital investment has jumped considerably in Dona Ana County, spurred by the recently begun Union Pacific Railroad project in Santa Teresa, but also ahead of the pace of the past several years even without Union Pacific.

New officers

Gary Lenzo with Century Bank is MVEDA’s chairman of the board as the new fiscal year begins, stepping in for Citizen’s Bank’s George Ruth, who will now serve as past chairman of the board.  ”I have some big shoes to fill,” Lenzo said.

In addition to Lenzo and Ruth, other officers include: Vice Chair Kiel Hoffman, Pioneer Bank; Secretary Dolores Connor, City Councilor; Treasurer Jim McGonnell, Memorial Medical Center; Executive Committee Member at Large Jack Darnall, Verde Realty.

Bryn Davis, New Mexico operations manager for Sapphire Energy and former past chairman of the board, was presented with a special award for all the work he has performed for MVEDA through the years.  ”I know I’m on the phone with him a lot,” Lenzo said.

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

Article courtesy of the International Business Accelerator

By Jerry Pacheco

In my 20 years of working the legislative session to support initiatives related to international trade, I have to say that the 2011 session was the most successful one that I can remember. The following are bills that passed the 2011 New Mexico legislative that will have an impact particularly on cross-border commerce:

HB 24 (Border overweight cargo zone bill): This bill passed both houses and is sitting on the governor’s desk waiting for her signature. Because this bill was endorsed by the governor during the session, it is highly likely that she will sign this. After signature, this bill will become law on July 1st.

This bill, sponsored by Mary Helen Garcia in the House of Representatives and supported by Senator Mary Kay Papen in the Senate, creates a six-mile zone around the Santa Teresa and Columbus Ports of Entry. It allows for reducible loads above the maximum 80,000 lbs, but not exceeding 96,000 lbs (a 15% increase in weight). There will be a $250 annual permit per truck/unit for haulers of irreducible loads within the zone.

The creation of these overweight zones will help create a new economic development opportunity by attracting importers of products from Mexico, such as tile and cement, which can bring their loads into warehouses located within the zone. The loads can then be broken down and distributed from these warehouses throughout the rest of the U.S. It is estimated that up to 100 jobs within the zones could be created within the first year of their establishment.

This bill was supported by the New Mexico Border Authority, the New Mexico Department of Transportation, and the Motor Transportation Department.

HB 322 (Revolving border infrastructure fund): This bill, which was sponsored by Representative Mary Helen Garcia, passed both houses and is sitting on the governor’s desk waiting for her signature. Because this bill was endorsed by the governor during the session, it is highly likely that she will sign this. After signature, this bill will become law on July 1st.

HB 322 creates a permanent Border Infrastructure Fund, to be managed by the New Mexico Border Authority, to plan, design, and construct border infrastructure. Border infrastructure needs are intimately tied to manufacturing, international logistics, and foreign trade patterns, which are often complex and require a comprehensive approach to be properly addressed. The creation of a permanent fund would allow the New Mexico Border Authority to finance multi-year, all-inclusive, border infrastructure plans.

Currently, border infrastructure development is conducted by reacting to specific crises with isolated projects; funding is usually contingent to availability and subject to politics involved in obtaining executive or legislative capital outlay allocations. A predictable funding source allows for proactive and methodical border planning and development, taking into account both present and future needs.

HB 523/SB 179 (diesel tax abatement bill – these were companion bills in the House and Senate): Both of these bills passed both houses and are sitting on the governor’s desk waiting for her signature. The House bill was sponsored by Representative Jane Powdrell-Culbert and the Senate bill was sponsored by Senator Cynthia Nava. The governor will have the option of signing either bill, which is critical for Union Pacific Railroad (UPR) to proceed with its publicly announced project to establish a diesel refueling station and swamp yards (intermodal yards) in Santa Teresa, New Mexico.

Union Pacific Railroad’s investment in its Santa Teresa project will exceed $400 million and have an overall economic impact of $500 million for the New Mexico economy. The construction of these facilities will create 3,000 jobs during the construction phase from 2011 to 2015, and will eventually be headquarters for more than 600 permanent jobs.

The UPR project was the first major economic development project announced by New Mexico Governor Susana Martinez and Secretary Jon Barela a week after the new administration took office.

SB 373 (Capital Outlay Reauthorization): This bill was sponsored by Senator Carlos Cisneros and most likely will be signed by Governor Martinez. The $800,000 that had long ago been appropriated to complete the planned hazmat station at the Santa Teresa Airport reverted, due to the slowness in the advancement of this project. SB 373 reauthorized the $800,000 so that the facility can now be completed. An additional $250,000 was reauthorized for the Santa Teresa Safety Inspection Station.

Article courtesy of Las Cruces Sun-News

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – A project that will bring hundreds of millions of dollars to the Santa Teresa area and would create a lot of jobs seems to be back on track.

Gov. Susana Martinez will be in southern Doña Ana County Friday to announce that Union Pacific Railroad plans to invest more than $400 million toward the total cost of the project with construction beginning after the governor and the state legislature pass a related tax incentive.

More details will be released at Martinez’s announcement, but there has been talk for years about relocating the Union Pacific hub out of El Paso and into the Santa Teresa area.

In 2006, Union Pacific announced the planned relocation. In 2008, the company reported that the project would create 60 new jobs and also bring 285 jobs that will be relocated from El Paso. At the time, Luis Heredia, director of public affairs for Union Pacific, said the company hoped construction would be completed by late 2010 or early 2011. That obviously did not happen, but Friday’s announcement seems to point to the fact that the project is back on track.

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