New Mexico Governor approves tax break, UP to invest $400M in New Mexico rail facility

New Mexico Governor Susana Martinez signed into law a bill passed by the New Mexico Legislature granting Union Pacific a locomotive fuel tax deduction. This legislation paves the way for UP to begin construction of an all new rail facility near Santa Teresa, N.M. in June 2011. Construction of the new facility will create approximately 3,000 jobs during the build phase from 2011 to 2015. UP expects that more than 600 jobs will be based at the facility once it reaches full capacity in 2025. The estimated overall economic impact of the project for N.M. exceeds $500 million, UP's investment highlighting the company's strong commitment to enhancing the nation's transportation infrastructure and setting the standard for outstanding customer service. "Our strategic investment in this new facility helps improve capacity and enhance efficiency on a key part of our network, while also demonstrating our long-term commitment to deliver premium service to our customers," said Jim Young, Union Pacific chairman and chief executive officer. "Investments of this kind are guided by our mission to serve and are leading to new business and record levels of safety and customer satisfaction." This facility will be located just west of the Santa Teresa Airport on 2,200 acres and will include fueling facilities, crew change buildings, an intermodal yard and an intermodal ramp with an annual lift capacity of up to 250,000 intermodal containers. The New Mexico economy will get an immediate boost when construction on the project begins later this year.