Thread: Union Pacific to invest $400 MILLION in rail hub project

Union Pacific to invest $400M in Santa Teresa rail hub project

By Brook Stockberger bstockberger@lcsun-news.com
Posted: 01/07/2011 12:41:04 AM MST

LAS CRUCES - A project that will bring hundreds of millions of dollars to the Santa Teresa area - and possibly create needed jobs - seems to be back on track.

Gov. Susana Martinez will be in southern Do-a Ana County today to announce that Union Pacific Railroad plans to invest more than $400 million toward the total cost to relocate the Union Pacific hub from El Paso to Santa Teresa.

Construction would begin after the governor and the state Legislature pass a related tax incentive.

"This means a lot to our industrial sector and goes a long way to truly making southern Do-a Ana County a major industrial base," said Jerry Pacheco, executive director of the International Business Accelerator in Santa Teresa.

Tony Popp, New Mexico State University economist, said many of the jobs at whatever facility is created will probably be transfers.

"I don't know how many of the jobs will be brand new; the railroad, obviously, has union membership," Popp said. "It could take a lot of years to transfer everything over, but you can expect an expanded job base down there."

Details will be released at Martinez's announcement, but there has long been talk about relocating the hub.

In 2006, the Omaha, Neb.-based company announced the planned relocation. In 2008, the company reported that the project would create 60 new jobs and bring 285 jobs 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 today's announcement seems to indicate the project is moving ahead.

Popp's colleague, economist Jim Peach, said the announcement should be a boon to the recruitment of companies to the Santa Teresa industrial park.

Having a railroad hub nearby will be attractive to companies looking to expand or relocate.

"The impact will be in two parts; the first one is construction and that impact is kind of a one-time deal," Peach said. "Then you'll have the operational impact, and you'll have the ongoing attraction of new industry to the area."

Martinez is scheduled to speak at 2 p.m. today at 2800 Airport Road in Santa Teresa. The public is invited to the event, but must RSVP to Pacheco at (575) 589-2200, or via e-mail at jerry@nmiba.com.

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

http://www.lcsun-news.com/las_cruces-news/ci_17032805