Overview of the Intermodal Railyards
Union Pacific’s El Paso Yard and BNSF’s El Paso Terminal anchor the city’s rail infrastructure, handling intermodal, automotive, and bulk commodities with direct connections to Mexico and the U.S. interior
El Paso’s intermodal facilities feature seamless transfer between rail and truck, supporting high-volume cross-border shipments and regional distribution for automotive, electronics, and consumer goods
Market Size and Economic Impact
El Paso’s rail network moves over 25 million tons of freight annually, supporting more than 6,000 regional jobs and generating an estimated $2.2 billion in annual economic impact as a top U.S.-Mexico trade corridor
Competitive Landscape
- Union Pacific: El Paso Yard serves as a major interchange for transcontinental and cross-border traffic, including automotive and intermodal
- BNSF Railway: El Paso Terminal supports bulk commodities, intermodal, and direct connections to western U.S. and Mexico
- Cross-Border Operations: Both Class I railroads maintain customs clearance and inspection facilities for efficient NAFTA/USMCA trade
Opportunities
- Automotive Growth: Expansion of vehicle assembly and parts distribution drives increased rail shipments and intermodal demand
- Electronics Logistics: Rising cross-border electronics manufacturing boosts intermodal and boxcar volumes through El Paso
- Infrastructure Investment: Planned upgrades to yards and customs facilities will enhance throughput and operational efficiency
Challenges
- Border Delays: Customs processing and security checks can slow cross-border rail movements and impact schedules
- Capacity Limits: Existing yard and track infrastructure faces congestion during peak trade periods and seasonal surges
- Aging Assets: Some legacy facilities require modernization to support larger trains and advanced intermodal operations
Trade and Logistics Trends
- Intermodal Expansion: Growth in containerized freight volumes driven by automotive and electronics sectors
- Bulk Shipments: Steady demand for agricultural, mineral, and chemical commodities moving north and south
- NAFTA/USMCA Trade: El Paso remains a top gateway for U.S.-Mexico rail commerce and supply chain integration
Future Outlook
- Yard Modernization: Union Pacific and BNSF plan capacity expansions and technology upgrades to support future trade growth
- Customs Automation: Implementation of advanced inspection and clearance systems to streamline cross-border operations
- Sustainability Initiatives: Investments in cleaner locomotives and energy-efficient yard operations to reduce emissions
Recommendations
- Capacity Expansion: Invest in additional track, yard space, and intermodal facilities to accommodate rising freight volumes
- Technology Integration: Deploy automated customs, yard management, and predictive analytics for operational efficiency
- Workforce Development: Enhance training and recruitment to support advanced logistics and cross-border rail operations
El Paso, TX
El Paso links the U.S. Southwest with Mexican manufacturing hubs and transcontinental rail networks, serving metropolitan regions with a combined population exceeding 2.5 million and supporting integrated NAFTA/USMCA supply chains
Strategically located at the U.S.-Mexico border, El Paso provides direct access to Mexican manufacturing centers and serves as a critical interchange for transcontinental rail corridors linking the Southwest, Midwest, and Pacific Coast
Where you'll go
Things to know
Rail Operations
Railroad Arrival: El Paso’s first rail connection was established in 1881, transforming the city into a regional freight gateway
Facilities & Services
Border Location: Situated on the Rio Grande, El Paso is a key crossing point for U.S.-Mexico rail and truck commerce
Location Benefits
Automotive Hub: The region’s automotive and electronics industries drive high-volume rail shipments and distribution activity
Additional Information
University Partnership: The University of Texas at El Paso supports logistics innovation and workforce development for rail operations