Union Pacific Railroad announced Jan. 25 the company started construction this month on a major rail yard near Hearne, Texas, a $550 million project that’s the largest in the railroad’s 103-year history.
Union Pacific initially planned to start work in 2014, but delayed construction, citing changes in demand. It is expected to create between 500 and 550 construction jobs during two years of work.
The so-called Brazos Valley yard will relieve rail congestion in the Houston area by allowing many trains to flow through the region and then redistribute railcars to various routes in Hearne.
“It also will improve efficiency and fluidity across our entire rail network,” Union Pacific Chairman and CEO Lance Fritz said in a statement.
Texas A&M University researchers estimated the yard will generate $260 million in annual economic output in Texas, as local and state elected officials cite the need for more freight to move via rail.
To that end, on Jan. 25 the Texas Transportation Commission approved using $600,000 in federal funds awarded to the state to fund more study of a 65-mile rail line from Port Freeport to a rail sorting center in Rosenberg.