Joined by New Mexico Gov. Susana Martinez, Union Pacific celebrated the initial preparation work for the 2,200-acre site.
The company plans to invest $400 million in the facility, located just west of the Santa Teresa Airport. It 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 will give southern New Mexico an inland port that will serve as a strategic focal point for goods movement.
Once complete, the facility will be 11.5 miles long and 1 mile wide, and will include 200 miles of railroad track and 26 buildings for yard operations.