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Union Pacific Railroad Begins Construction of $400 Million Rail Facility in New Mexico

Santa Theresa, N.M., August 08, 2011 – Union Pacific Railroad announced today the construction commencement of an all-new rail facility just outside Santa Teresa. Joined by New Mexico governor Susana Martinez, Union Pacific celebrated the initial preparation work for the 2,200 acre site. The company plans to invest $400 million toward the total cost of a project that is expected to add $500 million to the New Mexico economy. The rail facility site is located just west of the Santa Teresa Airport and will include fueling facilities, crew change buildings, locomotive inspection tracks, an intermodal ramp and a switching yard.

Set along the historic railroad corridor known as the "Sunset Route," this project is projected to bring 3,000 jobs to the area during construction from 2011-2015, while basing 600 permanent jobs in the Santa Teresa area upon completion, giving southern New Mexico an inland port that will serve as a strategic focal point for goods movement.

"Union Pacific committed $400 million to this project because this new facility will allow us to continue to enhance the premium service we offer our customers," said Union Pacific chairman and chief executive officer Jim Young. "This investment will bring new job opportunities to southern New Mexico and it will also provide economic benefits to the region, serving as a stronghold for commerce and goods movement in the state." 

Once complete, the facility will be 11.5 miles long and one mile wide, will include 200 miles of railroad track and 26 buildings for yard operations. Previous Union Pacific projects like this one in Santa Teresa have stimulated millions of square feet of additional industrial-related development within five to ten miles of the rail site including warehouses, distribution, and storage facilities. According to the Association of American Railroads, America's largest railroads keep pace with the top nine states in terms of highway spending, and they do it with private, not taxpayer, money. In 2010, capital spending by Class I railroads totaled $9.8 billion, and the industry plans to make $12 billion in capital spending during 2011. All told, freight rail companies have invested $480 billion to maintain and modernize the national rail network since 1980. 

About Union Pacific

Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise.

Media Contact: Aaron Hunt, 916-789-6019 or

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