Governor Martinez Announces two new Companies in Santa Teresa

From the El Paso Times:

Two El Paso companies putting facilities in Santa Teresa
By Vic Kolenc / El Paso Times
Posted: 07/23/2013 12:11:07 AM MDT
Photo by Victor Calzada / El Paso Times

New Mexico Gov. Susana Martinez was in Santa Teresa on Monday to announce that two El Paso companies plan to locate facilities there.
Twin Cities Services, a shipping container-storage company, plans to relocate its two El Paso storage yards, headquarters and 18 employees to a 32-acre site in Verde Logistics Park. It expects to have about 30 employees there in two to three years, the company owner said. The other company, W. Silver Recycling, a large industrial recycling company, plans to add another processing and distribution facility at a 5.5-acre site in the same industrial park. It eventually plans to employ 20 people there.

Owners of the companies said Union Pacific’s $400 million rail facility, now under construction, is a big reason the companies decided to put facilities in Santa Teresa, on the edge of El Paso’s West Side, Martinez signed legislation in 2011 exempting Union Pacific from paying locomotive fuel taxes so the railroad would develop what will be one of the world’s largest rail yards, and the largest intermodal rail yard on the U.S.-Mexico border. The rail hub was expected to attract more companies to Santa Teresa, where about 50 companies are now located.

“I am here to welcome two new companies to our state,” Martinez told a group of New Mexico politicians and business people inside a warm, humid warehouse. “I will continue to come as long as businesses come to New Mexico,” to welcome them, and let them “know we will do anything and everything in our power to make sure you understand, as small businesses, that we’re on your side.”

Martinez said infrastructure additions in Santa Teresa, including the Union Pacific facility, is helping attract companies there. The state also has become more competitive in the hunt for companies because it recently lowered its corporate taxes and eliminated taxes on manufacturers’ exports, she said.

“We are now becoming competitive. We now are being viewed as a place to come instead of skipping right over New Mexico and going right into Texas,” Martinez said. “I will see (Texas) Gov. (Rick) Perry tomorrow (at a Republican Governors Association meeting in Aspen, Colo.), and I will let him know that you (El Paso companies) are in New Mexico instead of Texas.”

Lane Gaddy, 30, president of W. Silver Recycling, said, “We’re not moving out there, it’s just an expansion,”

Santa Teresa has a special zone for overweight trucks from Mexico, which opens a new market by bringing loads from deeper inside Mexico, he said before the Santa Teresa event. The Union Pacific rail connection also is important, he said.

The almost 100-year-old company employs about 150 people at four locations in Texas and Albuquerque, including 90 people at its headquarters near Downtown El Paso, he said. It gets metals, plastics and cardboard from manufacturing plants in Mexico and other places and recycles the material.

The company plans to start building a rail spur and some processing equipment in Santa Teresa in three to six months and expects to hire about 20 people there within the next three years, Gaddy said. The expansion, including buying the land, is a multimillion-dollar investment, he said

Ed Hazelton, 65, owner and president of Twin Cities Services, said his company is spending about $4.5 million for the land and a small office building in Santa Teresa. He hopes to open the new facility in the first quarter of 2014, when Union Pacific is projecting to begin operating its Santa Teresa facility, he said. It stores shipping containers for ocean carriers.

“Our clientele want to be close to rail,” he said. The company is receiving no New Mexico incentives, except taxes are lower in New Mexico, he said.

The company has a 7-acre storage facility at 7180 Copper Queen in East Central El Paso and a 4-acre location at 400 Ingelwood in the Lower Valley.