Union Pacific Railroad, one of the leading railroad networks in the U.S., announced the completion of its new rail facility in Santa Teresa, New Mexico. The facility involved an investment of more than $400 million and was scheduled to be operational in 2015. However, Union Pacific has managed to complete the facility a year ahead and shall be inaugurating it on May 28 2014. With the opening up of the facility, the traffic entering the area is expected to increase by 500 to 800 trucks per day. This will increase Union Pacific’s cross-border traffic with Mexico leading to growth in revenue.
Union Pacific’s Santa Teresa rail facility will cater to truck to rail conversions, fueling and inspection of locomotives, and crew changing facility. The facility is expected to increase Union Pacific’s employee count by 600 by the year 2025. New Mexico is also expected to see a benefit of over $500 million once the facility is operational.
There’s not much out here other than roads, warehouses and cacti — and now a sprawling Union Pacific Railroad intermodal terminal and fueling station. Secluded as it is, what happens at this $400 million facility in a desert framed by mountains ripples through UP’s 32,000-mile U.S. network and taps into one of the largest trends in transportation rail: domestic rail growth.
Santa Teresa Facility Is Strategically Located to Benefit From Mexico Trade
Union Pacific’s Mexico Shipments Are Expected To Grow Driven By Growth In Automobile Exports
Automotive shipments accounted for 45% of Union Pacific’s overall Mexico shipments in 2012.Additionally, Union Pacific caters to 90% of the automotive shipments in and out of Mexico. Therefore, growth in automotive exports from Mexico to U.S. will help drive growth in volumes and revenues for Union Pacific.