Union Pacific Railroad to Invest $400 Million in New Mexico Rail Facility
Santa Teresa Facility

Omaha, Neb., April 05, 2011 – Union Pacific Railroad announced today that 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 Union Pacific to begin construction of an all new rail facility near Santa Teresa, New Mexico in June 2011.

Construction slated to begin in June
Up to 3,000 jobs created during build phase
Economic impact to New Mexico estimated to exceed $500 million


Construction of the new facility will create approximately 3,000 jobs during the build phase from 2011 to 2015. Union Pacific 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 New Mexico exceeds $500 million, with Union Pacific'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 state-of-the-art 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. Upon completion of the facility, the southern region of the state will have greater access than ever before to the economic and environmental benefits of shipping freight by rail.

Construction of this facility is part of Union Pacific's commitment to invest approximately $3.2 billion in 2011 – capital investment that is part of a long-term strategy to provide safe, efficient service across its 32,000-mile network.

Improved and additional rail capacity benefits everyone. It allows freight rail service to grow, helping to build a cleaner environment. Union Pacific can move one ton of freight nearly 500 miles on a single gallon of diesel fuel, and, according to the U.S. Environmental Protection Agency, freight trains are nearly four times more efficient than trucks. Motorists also benefit from reduced congestion on highways as a single Union Pacific train can remove up to 300 trucks from our roads.

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.

Dave Dodds
UPHS Member #3282
WPRM Life Member #361
San Dimas CA