New Mexico is part of a three-state, two-country region known as the Borderplex, along the border of Mexico, which has been experiencing high growth in recent years due in part to established logistics parks with rail spurs located in and around Santa Teresa and accessibility to Interstate 10, connecting the east and west coasts. A moderate climate averaging 340 days of sunshine and low humidity—delays due to inclement weather are rare and also contribute to the logistical successful of the area.
New Mexico has three ports of entry into Mexico, all overseen by the New Mexico Border Authority with varying degrees of service: Santa Teresa, Columbus, and Antelope Wells. Santa Teresa and Columbus serve commercial traffic.
Two fast-moving New Mexico crossings and three crossings located in nearby El Paso provide easy access to the maquiladoras across the border. Dona Ana County has the ability to establish Foreign Trade Zone designations anywhere in the county, which allow companies to benefit from duty free imports. Hub Zones in the region offer advantages for companies seeking government business/contracts.
The Borderplex is the 7th largest manufacturing center in North America with total manufacturing employment exceeding 230,000. The New Mexico Borderplex is adjacent to over 300 maquilas in Juarez, who manufacture of a wide variety of products ranging from electronics to automotive parts. A maquiladora is a Mexican manufacturing operation in a free trade zone, where factories import material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing and then export the assembled, processed and/or manufactured products back to the country of origin.
Mexico is the leading export destination for the state of New Mexico, and third in value for imports, it’s also the third leading trading partner for the United States. More than $80B in US-Mexico trade crossed through its ports in 2011, accounting for 18% of all US-Mexico trade.
Santa Teresa Port of Entry
With Santa Teresa’s recently expanded port of entry with shorter wait times than neighboring border states, New Mexico is becoming the ideal place for direct access to the ports of Houston and Long Beach, or locations deep into Mexico via rail or Interstate 10. Interstate 10 connects with Interstate 25 in Las Cruces, a direct route to the Canadian border. Union Pacific is building a $400 million full-service intermodal facility on its Sunset Route between El Paso and Los Angeles. UP provides service between 19 major Mexico markets and 47 in the United States and Canada.
Overweight Cargo Zone
In 2011, New Mexico created a six-mile overweight cargo zone around the Santa Teresa and Columbus ports-of-entry. The zone allows trucks up to 96,000 lbs of cargo even if they have a reducible load. The permit is $250 annually and is applied to a single truck, giving companies the flexibility to pay for only the trucks that will travel in the zone rather than paying for their entire fleet.
Union Pacific Intermodal Facility
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. The Santa Teresa Facility will also allow additional access for shippers and intermediaries in the area.
Features include an intermodal ramp, fueling facilities, and an intermodal block swap/switching yard.
Routes From Mexico
New Mexico is geographically well-positioned to serve major markets in Mexico by both road and rail. The ports at Matamoros and Mazàtlan are growing, making the connection from Santa Teresa an increasingly important one. The highway and rail systems connect these ports to the Santa Teresa port-of-entry where a large number of containers shipped in and out of Mexico will utilize the Santa Teresa intermodal facility.
Border Area Tax Incentive
Texas/Mexico Border Residents’ Tax Exemption
Non-resident employees may allocate their compensation to their home state. Since Texas does not have a personal income tax, Texas residents working at the New Mexico enterprise will not have to pay any state income tax on their compensation from the enterprise. The enterprise must be in the manufacturing business, physically located within 20 miles of the Mexican border, have at least 5 employees who are New Mexico residents and not be receiving Job Training Incentive Program funds.