Logistics & Distribution

New Mexico is strategically located in the middle of the southwest and the nation’s fastest growing states: Arizona, Colorado, Nevada, Texas and Utah.  An excellent highway and rail infrastructure provides direct access to the east and west coasts, Texas, the midwest, and the international borders of Canada and Mexico.  

From New Mexico goods can be delivered to Texas, Arizona, Colorado, Kansas and Utah within one day, and California markets in two days.  The volume of truck traffic into the state translates into low backhaul rates for goods leaving the state.

ClaytonPortsMapThe Ports to Plains Alliance is improving the highway infrastructure from Laredo Texas/Mexico to the Oil Sands of Alberta Canada:

The Ports-to-Plains Alliance, based in Lubbock, Texas, is a non-profit, non-partisan, community-driven advocacy group led by mayors, councilpersons, economic development officials, business and other opinion leaders from a nine-state, 2300-plus mile economic development corridor between Texas, and Alberta, Canada. Over the past decade, Ports-to-Plains Alliance members have raised over U.S. $1 billion in federal funding for road improvements in the nine-state Ports-to-Plains region. Today, we collaborate with our federal and state leaders, partners in Canada and Mexico, and industry partners, to deliver the infrastructure, food and fuel to secure the quality of life of America's great cities. At the same time, we embrace America's new energy economy, and are capitalizing upon wind power, biofuels and other innovation sectors to renew one of America's greatest legacies, the rural heartland.


Rail Service
Burlington Northern Santa Fe (BNSF) and Union Pacific railroads both provide direct service to the Ports of Long Beach and Houston, as well as ports of entry at the Mexican and Canadian borders.  

UnionPacificUnion Pacific (UP)
Union Pacific serves 25,000 customers in 23 states across the western two-thirds of the U. S., a total of 31,900 route miles.  The railroad has a $400 million, 2,200 acre intermodal facility under construction near the Santa Teresa International Port of Entry to Mexico.  The new facility is located just west of the Santa Teresa Airport and will include fueling facilities, crew change buildings, locomotive inspection tracks, an intermodal ramp, a switching yard and 200 miles of track.

 

Union Pacific  Intermodal Facility

Santa Teresa Intermodal Terminal - Santa Teresa, NM


Terminal Information
Union Pacific is currently constructing a new, state-of-the-art rail facility in southern New Mexico. For the first time ever, New Mexico will have a key inland port, positioning the Santa Teresa/El Paso area as a strategic focal point for shipments in the southwestern U.S.


The new facility will increase capacity for lifts, parking and containers as volume in this area continues to grow. Santa Teresa Facility will also allow additional access for shippers and intermediaries in the area.

Facility Features

  • Intermodal Ramp - This regionally focused intermodal ramp will permit both local and regional businesses more immediate access to the efficiencies of freight trains.
  • Fueling Facilities - Located along the busy "Sunset Route" between El Paso and Los Angeles, this fueling facility will enhance commerce and goods movement.
  • Intermodal Block Swap/Switching Yard - Enhancing capacity and efficiency, this new switching yard will incorporate the latest engineering techniques for improved efficiency and throughput.

SantaTeresa

 

Construction Update
Phase 1 construction began in early August 2011. This phase consisted of mass grading and extended approximately two miles of Dona Ana County public water and sanitary sewer linesto serve the facility. Phase 2 construction includes all mechanical, electrical, architectural, utilities, track and civil engineering portions of the project. The Santa Teresa Terminal is in now in operations and will be fully operational May 2014.

Bi National

 

Bi-National Community

In August 2013 Governor Susana Martinez and Economic Development Secretary Jon Barela announced the creation of a master-planned Bi-National Community involving Santa Teresa in New Mexico and San Jerónimo in Mexico.
 
The potential of the Santa Teresa-San Jeronimo area is endless, and with this visionary, master-planned community the state will be well-positioned to compete for large, global investments to locate in New Mexico.
 
The joint initiative between Governor Susana Martinez and Chihuahua state Governor César Duarte will commit New Mexico and Mexico to working to align their efforts in creating a 70,000 acre, first-of-its kind, bi-national, master-planned community around the Santa Teresa-San Jeronimo border crossing.

This region is strategically located in the central corridor of the NAFTA region and its right in the middle of the U.S.-Mexico Border between the two major seaports of


Houston and Long Beach making it an attractive location for manufacturers, transportation and logistics companies. It is also home to two major industrial anchors on both sides of the border – the Union Pacific Intermodal Rail Facility in Santa Teresa and the 640 acre Foxconn manufacturing campus in San Jeronimo, Chihuahua. It will be positioned to attract large, global industrial and commercial businesses, include residential and retail development and incorporate state-of-the-art energy, water and sustainability technologies.

The Bi-National Community is the model of cross-border development incorporating the largest inland port to facilitate economic development by consolidating a new industrial, commercial and residential community at the San Jeronimo- Santa Teresa border crossing.
In addition to more than 70,000 acres of land available for industrial, commercial and residential development, it includes more than 2,000 acres of rail-served industrial land.

Region’s Competitive Advantage:

  • Equidistance to the seaports of Long Beach and Houston, and integrated into the Northern Economic Corridor in Mexico connected to the Pacific seaports by both rail and highway
  • Foreign Trade Zone (U.S) adjacent to Recinto Fiscalizado Estrategico (Mexico) on border
  • Efficient border crossing that handles commercial oversize and overweight loads
  • Easternmost land crossing on the U.S.-Mexico border
  • Inland port with full intermodal capabilities planned on both sides of the border
  • Juarez railroad bypass project
  • Common industrial clusters
  • Central corridor of the NAFTA region

 

Burlington Northern Santa Fe Railway (BNSF)
BNSF serves 28 states and two Canadian provinces, a total of 32,000 route miles. It operates a multimodal rail yard in Belen, 30 miles south of Albuquerque. The Company will invest $65 million on track and rail capacity improvement projects in New Mexico in 2012.  BNSF is also investing approximately $1.1 billion on locomotive, freight car and other equipment acquisitions, many of which will serve New Mexico.

 

Chief at crossroads: Train enthusiasts fear end of Amtrak service in Northern New Mexico

 

railrunner2Rail Runner Express
The State of New Mexico owns and operates the Rail Runner Express, a commuter railroad that provides service from Belen to Santa Fe via 14 stations, including Albuquerque International Sunport.

International Ports of Entry
New Mexico has three ports of entry bordering Mexico, all operated by the State through its Border Authority:
Santa Teresa
Columbus
Antelope Wells

Services Santa Teresa Columbus Antelope Wells
Pedestrian Traffic X X X
Mexican Immigration Services X X X
U. S. Immigration Services X X  
Permanent Vehicle Exports X    
Temporary Vehicle Export Permits X X  
Non-Commercial Traffic X X X
Commercial Traffic X X  
Livestock X X  
Customs Brokers X X  
Open 24 hours   X  

Air Service
More than 60 airports are located throughout New Mexico.  Four international airports serve different regions of the state:

  • Albuquerque International Sunport provides nonstop service to 30 cities daily via eight commercial carriers. Three cargo carriers serve the airport: Federal Express, DHL, and UPS.  
  • El Paso International Airport is served by five commercial carriers with nonstop service to 18 cities.  It is served by four cargo carriers: Federal Express, UPS, DHL and Cargo Force.
  • Rick Husband Amarillo International Airport is served by four commercial carriers: American Eagle, Continental Express, Southwest, and United.
  • Tucson International Airport is served by six commercial carriers: Alaska Airlines, American, Delta, Southwest, United and US Airways with nonstop service to 14 cities.


Airports in Alamogordo, Carlsbad, Clovis, Farmington, Hobbs, Santa Fe, and Silver City also offer service to cities within New Mexico and bordering states.

Cost Comparisons
New Mexico offers a very low cost of doing business.  The state has the lowest property tax in the nation (Source: Tax Foundation) and no inventory tax.  Real estate, particularly in non-urban areas, is very competitively priced.  Abundant natural resources mean the state is a net exporter of electricity.  This is reflected in electric and natural gas prices.

Retail Sales Price of Electricity (Million Kilat hours)
April 2012 Monthly Residential Commercial Industrial
New Mexico 10.81 8.39 5.62
Arizona 11.16 9.21 6.09
Colorado 10.96 8.95 6.77
Nevada 12.4 9.08 5.48
Oklahoma 10.27 6.9 4.95
Texas 11.27 8.31 5.4
Utah 9.49 7.8 5.4
Source: U.S Energy Information Administration
Natural Gas Prices in Dollars per Thousand Cubic Feet
2011 ANnual Prices Residential Commercial Industrial
New Mexico 9.17 7.27 6.22
Arizona 15.05 9.99 6.88
Colorado 8.16 7.78 N/A
Nevada 10.66 8.05 8.98
Oklahoma 10.27 N/A 7.74
Texas N/A 7.24 4.19
Utah 8.44 7.06 5.49
Source: U.S Energy Information Administration
N/A: Not Available

Wages are also competitive:

Occupations New Mexico Colorado Nevada Oklahoma Texas Utah
Transportation, Storage, and Distribution Managers $33.26 $34.62 $42.70 $33.64 $39.81 $37.40
Industrial Engineers $40.76 $42.55 $41.15 $33.70 $39.79 $38.59
Production, Planning, and Expediting Clerks $20.30 $20.27 $23.12 $20.20 $18.59 $19.31
Stock Clerks and Order Fillers $10.02 $10.88 $11.36 $9.82 $10.37 $10.31
Helpers-Production Workers $10.77 $11.06 $11.80 $10.85 $10.07 $10.55
Heavy and Tractors-Trailer Truck Drivers $17.37 $20.04 $19.25 $16.83 $17.07 $19.22
Industrial Truck and Tractor Operators $14.02 $13.69 $15.11 $13.77 $12.87 $14.29
Material Moving Workers, All other $10.43 $14.94 no data $14.31 $19.30 no data

Incentives
New Mexico’s Job Training Incentive Program (JTIP) is one of the most aggressive in the nation.  The Program has a forty year history of assisting businesses with customized workforce training and has trained more than 50,000 participants.  JTIP funds classroom training and on-the-job training for newly-created jobs in expanding or relocating businesses for up to six months.  JTIP reimburses 50-75% of trainee wages.  Custom training at a New Mexico public educational institution may also be covered.  

Rural Jobs Tax Credit
Employers receive a credit of $1,000 for each qualifying job the employer creates, for four consecutive years in communities of less than 15,000 residents, and two consecutive years in non-MSA communities of more than 15,000 residents.

High Wage Jobs Tax Credit
This credit gives companies who hire employees at salaries of $28K or higher in rural areas, and $40K or higher in urban communities, tax credits equal to ten percent of the combined salary and benefits package for the year in which the job is created, and for the three qualifying periods following.

Local Economic Development Act (LEDA)
LEDA and New Mexico’s economic development capital outlay program may provide funds for qualified projects that create new jobs and investment in the state.