STB Initiates Environmental Impact Assessment for Rail Project

The Surface Transportation Board (STB) has announced its intent to undertake an environmental impact assessment for the construction and operation of a new common carrier rail line in Maverick County, Texas. This decision comes in response to a petition filed by Green Eagle Railroad (GER), a subsidiary of Puerto Verde Holdings (PVH), for authorization to build and operate approximately 1.3 miles of railway extending from the United States-Mexico border to an existing Union Pacific Railroad (UP) connection.

The proposed rail line is part of a larger project known as the Puerto Verde Global Trade Bridge (PVGTB Project), which aims at establishing a new trade corridor facilitating freight and commercial motor vehicle traffic between Piedras Negras, Coahuila, Mexico, and Eagle Pass, Texas, United States. As part of the environmental review process mandated by the National Environmental Policy Act (NEPA), the STB's Office of Environmental Analysis (OEA) has identified significant potential environmental impacts associated with the construction and operation of the rail line.

GER's proposal outlines the construction of a secure, double-tracked rail corridor with no roadway/rail at-grade crossings, crossing the Rio Grande River via a newly constructed bridge. The project also includes a new commercial motor vehicle roadway, inspection facilities operated by the US Customs and Border Protection (CBP), and other infrastructure. The primary objectives cited by GER for the rail line's construction include enhancing safety, alleviating congestion, and facilitating binational trade between the United States and Mexico.

To gather input and assess the scope of the environmental impact statement (EIS), the STB is soliciting comments from stakeholders until April 29, 2024. The EIS process will involve thorough analysis and assessment of various environmental factors, including transportation, air quality, noise and vibration, biological resources, water resources, visual and cultural resources, land use, geology and soils, energy resources, socioeconomic impacts, environmental justice considerations, as well as cumulative and transboundary impacts.

In addition to the environmental impact assessment, the construction and operation of the proposed rail line and PVGTB Project would need a range of permits and authorizations from various federal, state, and local agencies to proceed with the project.

In terms of its economic impact, Ray Perryman, Founder, President and CEO, The Perryman Group, conducted an analysis forecasting economic benefits stemming from trade facilitated by the PVGTB project. He shared that the PVGTB has the potential to generate over US$135 billion in Gross Domestic Product (GDP) and nearly 1.4 million jobs, envisioning it as a catalyst for establishing a new North American reshoring hub.

Perryman also suggests that the PVGTB project could create approximately 320,000 jobs and contribute US$28 billion in annual GDP. Of these potential jobs, 105,000 are anticipated to be filled locally in Maverick County, with an additional 166,000 in Northern Coahuila. He also highlights the potential for increased local property values and heightened demand for amenities such as restaurants, retail outlets, and personal services, signaling broader economic growth and development opportunities for the region.