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.

Quick Facts
  • State-of-the-art intermodal facility by Union Pacific (UP) just across the Mexican border ($400 million investment). The new UP facility has fueling facilities, crew change buildings, locomotive inspection tracks, an intermodal ramp, a switching yard and 200 miles of track.
  • Three interstate freeways: I-25 (north-south), I-40 and I-10 (east-west)
  • New Mexico offers direct access to the East Coast, the West Coast, the Midwest, and the borders of Mexico and Canada via three international ports of entry, all overseen by the New Mexico Border Authority with varying degrees of service: Santa Teresa, Columbus, and Antelope Wells.
  • Rail Service – The Burlington Northern Santa Fe (BNSF) and Union Pacific railroads provide direct service to the Ports of Long Beach and Houston, as well as ports of entry at the Mexican and Canadian borders
  • Air Service: More than 60 airports are located throughout New Mexico; four international airports serve different regions of the state.
  • Equidistant to the ports of Southern California and the ports of Texas.
  • Overweight Cargo Zone allows trucks up to 96,000 lbs of cargo even if they have a reducible load.
  • Lowest property tax rates in the U.S., no inventory tax and a number of tax incentives for manufacturing.

Proximity to Market

The cost of transporting goods is reduced by utilizing the highways and railroads that run directly through New Mexico. Union Pacific and Burlington Northern Santa Fe Railway are among those serving the state and provide transportation of raw materials and finished products throughout the nation.

Destination (in miles) Albuquerque Santa Teresa
Calgary 1,530 1,788
Chicago 1,337 1,524
Ciudad Juárez 269 16
Dallas 647 648
Denver 447 705
Houston 884 759
Kansas City 788 944
Las Vegas 572 724
Long Beach 799 803
Matamoros 1,200 950
Mazatlán 1,077 827
New Orleans 1,170 1,105
Newark 1,981 2,185
Oklahoma City 544 732
Phoenix 418 424
Salt Lake City 598 858

Santa Teresa Intermodal Terminal

Union Pacific has recently completed 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 United States.

The new facility will increase capacity for lifts, parking and containers as volume in this area continues to grow. Located along the busy “Sunset Route” between El Paso and Los Angeles, the Santa Teresa Facility will also allow additional access for shippers and intermediaries in the area.

Facility features include an intermodal ramp that will permit businesses more immediate access to the efficiencies of freight trains, fueling facilities to enhance commerce and goods movement, and an intermodal block swap/switching yard that will incorporate the latest engineering techniques for improved efficiency and throughput.

New Mexico Transloading

New Mexico Transloading (NMT) is a multi-purpose, multi-user freight rail terminal centrally located in Albuquerque at the interchange of I-40 and I-25.  Serviced by BNSF, NMT provides rail access to Mexico, Canada and all U.S. markets, as well as to the ports of Houston and Long Beach/Los Angeles for international markets.

By providing access to rail in central New Mexico, NMT offers the benefits of rail freight economics without the cost of onsite rail infrastructure. Along with rail access, NMT provides shippers transloading, transportation, warehousing, and distribution services as well.

NMT’s specialized equipment can transload—from rail to truck and vice versa—a wide range of products such as bulk liquid, gas, dry goods, construction materials, timber, packaged/palletized goods, as well as machinery and heavy equipment.

Industry-Specific Incentives

Locomotive Fuel Gross Receipts & Compensating Tax Exemption
Receipts from the sale of fuel to a common carrier to be loaded or used in a locomotive engine may be deducted from the gross receipts and the value of fuel sold to a common carrier to be loaded or used in a locomotive engine may be deducted in computing the compensating tax. “Locomotive engine” is defined as a wheeled vehicle consisting of a self-propelled engine that is used to draw trains along railway tracks.  To be eligible, the fuel sold must be used or loaded by a common carrier that:

  1. After July 1, 2011, made a capital investment of one hundred million dollars ($100,000,000) or more in new construction or renovations at the railroad locomotive refueling facility in which the fuel is loaded or used;
  2. On or after July 1, 2012, made a capital investment of fifty million dollars ($50,000,000) or more in new railroad infrastructure improvements, including railroad facilities, track, signals and supporting railroad network, located in New Mexico; provided that the new railroad infrastructure improvements are not required by a regulatory agency to correct problems, such as regular or preventive maintenance, specifically identified by that agency as requiring necessary corrective action.

For more information on all incentives New Mexico has to offer, click here.


pdf_12 Brochure: Moving It Forward

pdf_12 Map: New Mexico

link_12 Infrastructure

linkto_12 New Mexico Department of Transportation