Union Pacific to invest $200M in south Louisiana operations

Union Pacific Corp. says it will spend $200 million to expand its operations in south Louisiana to meet expected higher customer demand from petrochemical plants along the Mississippi River. The plans call for the hiring of 225 new employees. The expansion, announced today, includes a new support yard in St. James Parish, an additional 29 miles of track from Livonia to Addis and more slots to assemble trains in Livonia. Union Pacific says at the peak of construction in June, 1,500 construction employees will be needed. Omaha, Neb.-based Union Pacific says it expects to complete the expansion by the end of 2012. The company currently has about 1,100 miles of track in Louisiana. Union Pacific chief executive James Young says the company already has hired 43 people for the 225 new jobs, which will pay an average of $45,000 a year. The plan also includes the retention of 1,100 current Union Pacific workers. Low natural gas prices and big supplies from shale finds have boosted petrochemical activity in the state. Gas is used as a source of heat and for ingredients used in scores of chemical products. According to figures from the Louisiana Chemical Association, industry employment has increased over the past two years from 24,113 to 26,648. Union Pacific says it’s planning to spend another $300 million over the next several years on growth and maintenance projects in Louisiana.