New Mexico Moving it forward.

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Logistics, Transportation & DistributionThe southwest is the fastest growing region of the country and New Mexico is right at the heart of it, offering a very low cost of doing business well-suited for logistics, transportation and distribution. The state has the lowest property tax burden in the nation, according to the Tax Foundation, and property is assessed at only 33% of its market value. There is no inventory tax.

Real estate, particularly in non-urban areas, is very competitively priced as are the hourly wages for warehouse and distribution employees. Abundant natural resources mean the state is a net exporter of electricity, which is reflected in the price of natural gas and electricity.

Supported by three interstate freeways, a vast railway system, and a number of regional and international airports, New Mexico offers direct access to much of the United States, as well as the international borders of Canada and Mexico. From New Mexico, it’s possible to reach Texas, Arizona, Colorado, Kansas, Oklahoma and Utah within one day’s trucking, and California markets in two days. Distribution companies, manufacturers, and other business are well-positioned here to serve both east and west coast clients.

The state is crisscrossed by three major interstates: I-25 (north-south), I-40 (east-west), and I-10 (east-west), in addition to two- and four-lane highways. The volume of truck traffic into the state translates into low backhaul rates for goods leaving the state.

The cost of transporting goods from the ports of California, for example, is also reduced by utilizing the railroads that come directly into 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.

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

Union Pacific

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.

Burlington Northern Santa Fe Railway

The Burlington Northern Santa Fe Railway 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.

International Ports of Entry

New Mexico has three ports of entry bordering Mexico, all overseen by the New Mexico Border Authority with varying degrees of service: Santa Teresa, Columbus, and Antelope Wells.

Air ServiceMore 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 Airlines

• 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.

ServicesSanta Teresa Columbus

Antelope Wells

Pedestrian Traffic • • •

Mexican Immigration Services • •

U.S. Immigration Services • • •

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Santa Teresa Intermodal Terminal

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 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.

Destination (in miles) Albuquerque Santa Teresa

Calgary 1,530 1,788

Chicago 1,337 1,524

Ciudad Juárez 16 269

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

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Santa Teresa Overweight Cargo Zone

In 2011, New Mexico created a six-mile overweight cargo zone around the Santa Teresa port-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.

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.

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Serving North AmericaNew Mexico provides transportation and storage logistics that make doing business simpler. Rail access is provided by both BNSF Railway and Union Pacific. In Belen, BNSF operates the largest inspection yard on the southern transcontinental corridor, linking Southern California and Chicago, and serves as a regional maintenance and fueling facility for trains up to 10,000 feet long. The Sunset Route, the 760-mile Union Pacific corridor between the ports of Los Angeles and El Paso, is an important transcontinental route for goods and business. The Union Pacific intermodal facility in Santa Teresa will provide increased service from Mexico by both road and rail, with established logistics parks that have rail spurs providing short-line railroad cross-docking services. The Santa Teresa and Columbus ports-of-entry have overweight cargo zones with a six-mile radius for trucks carrying a reducible load up to 96,000 lbs. Public warehousing also provides the ultimate flexibility in storage for companies.

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IncentivesJob Training Incentive Program (JTIP)

JTIP is one of the most aggressive job training programs in the nation, with a forty year history of assisting businesses with customized workforce training and has trained more than 42,000 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 50-80% 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.

About Us

The New Mexico Partnership is contracted by the New Mexico Economic Development Department to be the one stop shop for locating businesses in New Mexico. We simplify the site selection process by providing information and support regarding incentives, workforce training programs, and real estate sites and buildings.

The New Mexico Economic Development Department is the state agency charged with working to enhance and leverage a competitive environment to create jobs. The State of New Mexico offers aggressive incentives to bring businesses to New Mexico and works in conjunction with the New Mexico Partnership to encourage companies to invest in New Mexico.

Please contact us to receive our confidential assistance.

505 247 8500 or 888 715 5293nmpartnership.com

Cost Comparison: Hourly WagesOccupation New Mexico Arizona Colorado Oklahoma Texas Utah

Transportation, Storage & Distribution Mgrs. $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 & Expediting Clerks $20.30 $20.27 $23.12 $20.20 $18.59 $19.31

Stock Clerks & 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 & Tractor-Trailer Truck Drivers $17.37 $20.04 $19.25 $16.83 $17.07 $19.22

Industrial Truck & 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

Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics, May 2011

NMpartnership

New Mexico Partnership

1720 Louisiana Boulevard NE, Suite 312

Albuquerque, New Mexico 87110 USA

505 247 8500 or 888 715 5293

nmpartnership.com