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Recession slows Sunset Route projects

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Published: Monday, December 07, 2009

PHOENIX — Several construction projects to increase the freight capacity of Union Pacific's main line across southern Arizona and New Mexico have been sidetracked by the recession, the Associated Press has reported. A new freight yard in Arizona's Pinal County is on hold, and the addition of a second track across Arizona has been delayed indefinitely, company spokesman Tom Lange said Friday.

UP expects the projects to go forward when the economy turns around, Lange said, but noted there was no timetable. In its latest earnings report on Oct. 22, Union Pacific said the global recession reduced its rail traffic 15 percent in the third quarter from the year-ago period. All major business groups saw decreases, the report said.

The railroad opened two new rail-to-truck facilities in San Antonio, Texas, and Portland, Ore., this year and broke ground on one in Joliet, Ill. UP's capital improvement budget this year was $2.6 billion, down from $3.1 billion in 2008.