.

>>> WATER LEAK OF INTERNATIONAL

PROPORTIONS.

>> GROUNDWATER FOR ALL THE

REGION CANNOT BE JEOPARDIZED.

>> CROSSING PARTY LINES HOPING

TO FIX HEALTH CARE.

>> SO THAT WASHINGTON, D.C. IS

NOT AS DYSFUNCTIONAL AS PEOPLE

PLI.

>>> PLUS, RAIL TRANSPORTATION IN

ARIZONA.

>>> HELLO, AND THANK YOU FOR

JOINING US.

WE BEGIN OUR PROGRAM ALONG THE

U.S./MEXICO BORDER IN THE

NOGALES AREA.

IT'S BEEN MORE THAN A WEEK SINCE

A BREACH OCCURRED IN A CROSS

BORDER SEWER LINE.

EVERY DAY THE UNDERGROUND PIPE

TRANSPORTS TENS OF THOUSANDS OF

GALLONS OF RAW SEWAGE.

THE BRIDGE HAS CONTAMINATED

WATER IN THE NOGALES WASH.

THE GOVERNOR HAS ISSUED A STATE

OF EMERGENCY.

"ARIZONA WEEK'S" REPORTER

TRAVELED TO NOGALESLE WHIER THIS

WEEK AND JOINS ME NOW.

WHAT TEST LATEST?

HAS IT STOPPED?

>> THEY ARE NOT SURE IF IT

STOPPED OR NOT.

WHAT THEY HAVE DONE IS CREATED A

BYPASS, A 18,000 FOOT BYPASS TO

BYPASS THE AREA WHERE THERE IS A

LEAK.

IN OTHER WORDS, CAP IT ON ONE

END, PUT IN A PIPE BYPASS AND

CAP IT ON THE OTHER END.

THEY ARE CONDUCTING TESTS ALONG

THE SANTA CRUZ RIVER TO SEE IF

THEY HAVE IT.

HOWEVER, THEY WANT GET INTO THE

WASH TO SEE WHERE THE LEAK IS

UNTIL THE RIVER WATER SUB SIDES

AND THAT COULD TAKE SEVERAL

WEEKS.

>> HOW IS IT THAT THE U.S.

TREATS MEXICO'S SEWAGE?

CAN YOU EXPLAIN THIS TREATY THAT

GOES WAY BACK?

>> RIGHT.

MANY PEOPLE SAY WHY IN THE WORLD

WOULD THE U.S. TREAT SEWAGE FROM

MEXICO?

IT HAS TO DO WITH THE SANTA CRUZ

RIVER.

THE SANTA CRUZ RIVER IS THE ONLY

RIVER IN THE UNITED STATES THAT

FLOWS SOUTH INTO -- ACTUALLY

FLOWS SOUTH INTO MEXICO FROM THE

U.S.

IT MAKES A U-TURN, GOES BACK

INTO MEXICO, AND COMES BACK TO

THE U.S.

THE THING IS, IS THAT WATER IS

SO PRECIOUS TO US HERE IN

ARIZONA THAT IN 1962 THERE WAS

PART OF A TREATY BETWEEN THE

U.S. AND MEXICO THAT SAID WE'LL

TAKE YOUR SEWAGE, WE'LL TREAT IT

ON THE U.S. SIDE.

WELL, THAT WAS WHEN THE

TREATMENT PLANT WAS ONLY MAYBE A

MILE FROM THE BORDER.

SINCE THAT TIME IN THE 1970s,

THEY MOVED IT ALL THE WAY UP TO

RIO RICO, NINE MILES AWAY.

AND THAT PIPE HAHN HAS BEEN

THERE FOR SOME PORTIONS 50

YEARS, AND OTHER PORTIONS, 45

YEARS, AND IT'S NOT HOLDING UP

WELL.

>> THERE IS AN INTERNATIONAL

ISSUE.

INCLUDING CONGRESSMAN GREAT

HOEVO.

HE IS HOME ON RECESS.

HE MADE A TRIP DOWN THERE.

THIS IS HIS ANSWERS.

>> THE CONSEQUENCES TO RIPARIAN

AREAS AND THE SEQUENCES TO

DRINKING WATER AND ACT WI

OFFICERS ALONG THIS RIVER AND IN

THIS AREA HERE IS JEOPARDIZED

WHEN YOU HAVE 13,000 GALS DAILY

FLOWING AS A RESULT OF THAT

BREACH.

>> WHY IS THE SANTA CRUZ RIVER

SO IMPORTANT?

>> IT IS A LIFELINE.

IT HAS BEEN SINCE TIME IN MOMENT

YUM.

IT CONTINUES TO BE A LIFELINE.

IT IS A CONNECTION BETWEEN US

AND MEXICO.

AND IT IS A CONNECTOR ALL THE

WAY TO THE GILA RIVER.

THIS SOURCE NOT ONLY OF WATER

BUT OF GROUNDWATER FOR ALL THE

REGION CANNOT BE JEOPARDIZED.

THAT'S THE BIGGEST ENVIRONMENTAL

THREAT THAT WE HAVE RIGHT NOW.

>> NANCY, THE INTERNATIONAL

BOUNDARY AND WATER COMMISSION IS

IN CHARGE OF THIS.

BUT IT IS A BYE NATIONAL EFFORT.

WHO ULTIMATELY IS GOING TO FOOT

THE BILL TO FIX THIS?

>> ACCORDING TO THE CONGRESSMAN

HE THINKS THE FEDS SHOULD PICK

UP THE TAB FOR IT.

THE CITY OF NOGALES DOESN'T HAVE

THE MONEY, SANTA CRUZ COUNTY

DOESN'T HAVE THE MONEY OF THE SO

IT DOES FALL, BECAUSE OF THE

TREATY TO THE FEDERAL

GOVERNMENT.

THERE ARE SOME COST ESTIMATES

THAT GO UP AS HIGH AS $40

MILLION, AND IT COULD TAKE

SEVERAL YEARS.

THIS ONE SMALL BYPASS THAT WAS

CREATED IS COSTING ABOUT

$300,000.

>> YOU SAY THE FEDS WERE TAKING

U.S. AND MEXICAN GOVERNMENT?

>> THERE IS THE CONTROVERSY.

THE TREATY WAS SIGNED BETWEEN

THE TWO COUNTRIES, HOWEVER IT

WAS THE U.S. THAT COMMITTED TO

PAYING FOR IT.

SO BACK IN 1972.

WE'RE ALMOST 50 YEARS LATER,

LET'S SEE IF THE FED WILL PICK

IT UP.

>> NANCY, THANKS.

YOU JUST HEARD FROM THE

CONGRESSMAN.

HE IS BACK IN A AS ON RECESS

FROM WASHINGTON, D.C.

SO IS CONGRESSWOMAN MARTHA

McSALLY.

EARLIER THIS WEEK SHE SPOKE WITH

ARIZONA PUBLIC IMMEDIATE'S CHRIS

OVER CONOVER ABOUT HER ROLE IN

THE PROBLEM SOLVER CAUCUS A

BIPARTISAN CAUCUS OF 43

REPRESENTATIVES TO STABILIZE THE

HEALTH CARE MARKET SPECIFICALLY

DEALING WITH THE MEDICAL DEVICE

TAX AND THE INSURANCE MANDATE.

SHE SAYS SHE HOPES IT WILL START

THE CONVERSATION TOWARD FINDING

A SOLUTION TOWARD REPEALING AND

REPLACING THE AFFORDABLE CARE

ACT.

>> THIS IS NOT ABOUT REPLACING

OBAMACARE.

THERE ARE THINGS I TOLLY

DISAGREE WITH AND DO BELIEVE WE

NEED TO MOVE BETTER TO A BETTER

SUSTAINABLE MODEL, REPLACING IT

IN THE LONG RUN.

IN THE SHORT RUN WE HAVE TO HAVE

LASER TARGETS.

HOW DO WE TARGET STRUCTURAL

CHANGES AND THINGS THAT WILL

ALLOW BETTER CHOICES BRING DOWN

COSTS, PROVIDE OPPORTUNITIES GET

SOME CERTAINTIES SO THERE ARE

MORE CHOICES FOR INDIVIDUALS

THAT WE REPRESENT.

THAT WAS OUR FOCUS.

AGAIN, IT WAS A TOUGH PROBLEM

BUT WE ARE THE PROBLEM SOLVING

CAUCUS.

WE SAID LET'S TRY AND TACKLE

THIS THIN.

IT TOOK ABOUT THREE WEEK.

WE CAME UP WITH FOUR SOLUTIONS.

THE INTENT IS THAT THIS ISN'T

SPECIFIC LEGISLATION THAT WE

WANT PEOPLE TO VOTE ON RIGHT NOW

BUT IT SHOULD BE THE START OF

THE DISCUSSION THAT GOES THROUGH

THE COMMITTEE PROCESS ON BOTH

SIDES, THE HOUSE AND THE SENATE.

IT MAY NOT BE THE END RESULT BUT

AT LEAST WE WERE TRYING TO BREAK

THE FEVER AND SAY LOOK WE HAVE

GOT TO SOLVE THIS PROBLEM NOW

BECAUSE 20181 COMING FAST.

I THINK IT IS A GOOD START FOR

THOSE IDEAS.

>> YOU SAID THIS IS A START.

THERE ARE THINGS IN IT THAT YOU

DON'T LIKE AND YOU WERE THE LEAD

ON IT OR ONE OF THE LEADS ON IT

IN ORDER TO GET IT THROUGH THE

CAUCUS, THE BIPARTISAN CAUCUS.

YOU HAVE TO HAVE A LOT OF

APPROVAL WITHIN.

THIS WAS THE BEGINNING, I GUESS,

THE FIRST COMMITTEE, ALMOST.

>> IT WAS.

GOVERNING IS HARD, AND YOU DON'T

ALWAYS GET WHAT YOU WANT.

I WISH I WAS IN DIFFERENT

CIRCUMSTANCES AND I WISH I HAD

DIFFERENT EQUIPMENT BUT YOU HAVE

TO FIGHT THE WAR THAT YOU ARE

IN.

THE ONE THAT WE ARE IN NOW IS

THE CLOCK IS TICKING THE

INDIVIDUAL MARKET IS COLLAPSING

AND WE'VE GOT TO DO SOMETHING TO

ADDRESS IT.

THIS WAS HARD.

BUT GOVERNING IS HARD.

IT WAS GIVE AND TAKE.

I DO THINK FOR THE THINGS THAT I

WAS FOCUSED ON AND THE GOP WAS

FOCUSED ON THERE ARE SIGNIFICANT

WINS WITH CHANGING THE EMPLOYER

MANDATE FROM 50 EMPLOYEES

WORKING 30 HOURS A WEEK -- WE

HEAR FROM SMALL BUSINESSES ALL

THE TIME IN OUR COMMUNITY THAT

ARE SITTING AT 49 EMPLOYEES OR

WORKING A LOT OF PART-TIME

EMPLOYEES BECAUSE THE MANDATES,

THE PENALTIES IT COSTS ARE WAY

TOO HIGH.

SO IT'S STIFLING JOB GROWTH,

THIS SPECIFIC MANDATE.

WE'VE MOVED IT IN OUR PROPOSAL

TO 50 # 500 EMPLOY -- TO 5 HUB

EMPLOYEES AND STANDARD 40 HOUR

WORK WEEK.

IT CAN BE A GAME CHANGER FOR

SMALL BUSINESSES THEY CAN

UNLEASH AND GROW AND ALLOW THEIR

EMPLOYEES IF THEY DON'T PROVIDE

INSURANCE TO SHOP ON THE

INDIVIDUAL MARKET WHICH COULD

ALSO HELP STABILIZE IT.

YOU GET FULL-TIME WORKERS

SHOPPING AROUND WITH MORE

CHOICES THAT COULD START

BRINGING DOWN PREMIUM TO SORT OF

SPREAD OUT THE RISK IN THE

INDIVIDUAL POOL.

THIS IS A PRETTY BIG WIN TO

TEETH GET MY TEAMMATES FROM THE

OTHER SIDE OF THE AISLE TO AGREE

TO THIS CHANGE.

AND SECONDLY THEY AGREED TO THE

MEDICAL DEVICE TAX.

SO THERE IS SOME COMMON GROUND

THERE.

AND THIS DOES IMPACT OUR

COMMUNITY.

SO THAT'S A PRETTY BIG WIN.

>> WE SAW A LOT OF POLITICS

ESPECIALLY OVER ON THE SENATE

SIDE IN THE LAST WEEK OR SO

AROUND HEALTH CARE.

SO THAT BEGS THE QUESTION ON

THIS.

AFTER THIS GOT RELEASED WE SAW

SOME BUBBLES OF IT THE WEEKEND

BEFORE IT WAS RELEASED.

BUT AFTER IT WAS RELEASED, HAVE

YOU HEARD ANYTHING FROM

LEADERSHIP IN EITHER CHAMBER,

AND FROM THE WHITE HOUSE?

>> OUR INTEND WAS AGAIN THE

BREAK THE FEVER AND TO PROVIDE

SOME SOLUTIONS AND SHOW -- AND

ALSO THAT WASHINGTON, D.C. IS

NOT AS DYSFUNCTIONALAS AS PEOPLE

THINK.

THAT THERE IS A WAY FOR TO US

FIGURE OUT HOW TO WORK TOGETHER,

AND GIVE AND TAKE.

I STILL HAVE SINCERELY HELD

BELIEVES ABOUT WHERE THIS SHOULD

GO FORWARD IN THE LONG RUN BUT

BE LASER FOCUSED ON THIS

SPECIFIC CHALLENGE THE

INDIVIDUAL MARKET COLLAPSING AND

SORTING REPEAL OF THE MANDATES

THAT ARE IMPACTING ECONOMIC

GROWTH.

SO I THINK THIS IS THE START OF

THE CONVERSATION.

AND IT DOES PROVIDE THE SPACE IN

THE DISCUSSION TO SAY WOW THERE

IS 43 DEMOCRATS AND REPUBLICANS

THAT CAME TOGETHER.

WE HAD TO HAVE AT LEAST 50% OF

EACH SIDE AND 75% OF OUR

MEMBERSHIP SUPPORT OUR PROPOSALS

FOR US TO GO PUBLIC LIKE WE DID

AND WE GOT THOSE VOTES.

THIS IS THE START OF THE

CONVERSATION OF WHERE WE NEED TO

END BUT WE WILL LET THE

COMMITTEE PROCESS WORK ITS WAY

THROUGH.

>> THAT WAS MY QUESTION, WHERE

DO WE GO FROM HERE.

>> THIS MAY PUT MEAT ON THE

AGAINST OF WHERE IT GOES

FORWARD.

WE EXPECT COMMITTEE PROCESS WORK

NOW.

BUT WE WERE ABLE TO SHOW THESE

ARE IDEAS MANY OF US CAN AGREE

ON.

YOU NEED TO TAKE THESE SERIOUSLY

AND WE ARE GOING TO SUPPORT THIS

AND VOTE AS A BLOCH AS THESE

THING COME THROUGH BECAUSE WE

HAVE WORKED TOGETHER ON THIS

PROPOSAL.

WE ARE GOING TO KEEP WORKING.

I HAVE BEEN HAVING CONVERSATIONS

ON THE SENATE SIDE AS WELL.

I TALKED TO MANY SENATORS OVER

THE LAST WEEKS MAKING SURE THEY

UNDERSTAND THE TYPES OF THING WE

ARE WORKING ON.

WE'VE GOT TO CONTINUE WORKING

WITH THEM GOING FORWARD.

>>> A FOLLOW-UP TO LAST WEEK'S

PROGRAM.

UNION PACIFIC SAYS MORE THAN 50

TRAINS TRAVEL THROUGH TUCSON

EVERY DAY.

THE PORT OF TUCSON FUNCTIONS AS

A LOGISTICAL HUB FOR UNION

PACIFIC RAILROAD SHIPPING

RECEIVING LOADING AND UNLOADING.

NEARLY 60 LIFTS A DAY SAKES DAYS

A WEEK.

IT IS A TRANSPORTATION HU HUB

FOR TRAINS AND 18 WHEELERS.

LOCATED ALONG THE INTERSTATE

IT'S PRIVATELY OWNED BY THE

LEVINE FAMILY WHO WORKS CLOSELY

WITH THE GOVERNMENT AND THERE

ARE PLANS FOR EXPANSIONS.

>> THE PORT OF TUCSON IS ABOUT

AN 800 SQUARE MILE FACILITY.

WE ARE A CONTRACTOR WITH UNION

PACIFIC.

WE PROVIDE ANYTHING TO DO WITH

RAIL TO TRUCK AND TRUCK TO RAIL

CONNECTIONS.

IN THE BACKGROUND WE HAVE THE

SBE MODAL FACILITY WHERE WE PULL

THE CONTAINERS OFF OF THE

TRAIPSE AND MAKE THEM AVAILABLE

TO SHIPPING COMPANIES AND

CUSTOMERS IN THE AREA.

WE ALSO PUT THEM BECOME ON.

ADDITIONALLY WE HAVE OTHER

COMMODITIES THAT COME IN ON

BOXCARS, HOPPER CARS AND WHAT

NOT.

WHAT WE TRY TO BE IS A HUB OR A

CONNECTOR TO ANY OF THAT RAIL

TRAFFIC AND MAKE THAT ACCESSIBLE

TO SOUTHERN ARIZONA.

>> CAN YOU EXPLAIN THE LOGISTICS

OF ONCE THEY COME HERE, WHERE DO

THEY GO?

WHERE CAN THEY GO?

>> ONCE THEY COME INTO HERE, OR

LEAVE THE AREA THEY CAN GO DOWN

INTO MEXICO, INTO NORTHERN

MEXICO AND SONORA.

THEY GO ALL THE WAY TO PHOENIX.

WE ARE THE EXCLUSIVE CONTRACTOR

FOR INTERMODAL FOR SOUTHERN

ARIZONA.

ANYTHING GOING TO SOUTHERN

ARIZONA GOES THROUGH THIS

FACILITY.

GOING UP TO PHOENIX.

MAINLY IT'S REGIONAL, SOUTHERN

AS SKPAZ DOWN INTO MEXICO.

>> FAIR TO SAY SOME OF THE 18

WHEELERS GO OFF EAST TO THE REST

OF THE COUNTRY VIA I-10.

>> TYPICALLY ONCE THEY GO PAST

600 TO 700 MILES THAT'S WHERE WE

WOULD RATHER HAVE THE TRUCKS OR

CONTAINERS ON A RAIL CAR.

THAT'S WHERE THE BENEFIT COMES

IN, IF IT IS A LONG HAUL YOU CAN

PUT THOSE CONTAINERS ON A RAIL

AND THEN SHIP THEM GOING EAST.

>> HOW MANY DIFFERENT VENDORS OR

CUSTOMERS DO YOU HAVE THAT ARE

FILTERING THROUGH THIS

LOGISTICAL HUB?

>> TECHNICALLY WE ONLY HAVE ONE,

AS THE CONTRACTOR TO UNION

PACIFIC WE ARE PROVIDING THAT

SERVICE TO THEM FOR THE

INTERMODAL CONTAINERS.

WHEN IT COMES TO THE OTHER TYPES

OF FREIGHT LIKE THE BOXCARS AND

WHATNOT WE HAVE 12 CUSTOMERS

THAT BRING IN VARIOUS THINGS

FROM SUGAR, FERTILIZER, ONE

CUSTOMER THAT BRINGS IN BEER

FROM MEXICO.

PROBABLY ABOUT 12 ON TOP OF WHAT

WE DID WITH UNION PACIFIC.

>> CAN YOU EXPLAIN HOW THAT

INTERNATIONAL CONNECTION REALLY

HAPPENS, KNOW, HERE IN TUCSON?

>> ONE OF THE GREAT THINGS ABOUT

TUCSON IS THAT IT'S OFF OF THE

UNION PACIFIC SUNSET ROUTE,

THEIR MAINLINE.

WHEN YOU SEE A TRAIN GOING WEST

BOUND TOWARDS LONG BEACH,

PROBABLY ANYWHERE BETWEEN 60 AND

80% OF THOSE CONTAINERS ARE

EMPTY BECAUSE OF BALANCE OF

TRADE.

WHAT WE ENVISIONED HERE AND WHAT

DAD'S ORIGINAL VISION WAS IS TO

SAY THIS IS THE LAST -- OR THE

BEST PLACE FOR THOSE SHIPPING

CONTAINERS TO GET A LOAD GOING

BACK TO ASIA.

HELP TO BALANCE -- YOU KNOW, TO

ADDRESS THE BALANCE OF TRADE.

AND THEN SO BY PULLING THE

CONTAINERS OFF HERE, IT MAKES

THOSE AVAILABLE TO LOCAL

COMPANIES FOR LESS EXPENSIVE

FRAYED TO, SAY, CHINA, OR SOUTH

KOREA OR, SAY TAIWAN.

AND BECAUSE OF THAT, WE HAVE

COMPANIES THAT ARE SENDING, SAY,

RECYCLED MATERIALS IN CONTAINERS

OVERSEAS.

SO IT ALLOWS THEM TO ACCESS

MARKETS THEY WOULDN'T HAVE HAD

BEFORE.

>> WHAT IS THE PORT OF TUCSON

CAPABLE OF IN THE FUTURE?

>> IT IS AN INTERESTING QUESTION

BECAUSE OF THE FACT THAT WE

REALLY WAKE UP EVERY MORNING AND

SAY WHAT'S THE TUNE THAT DAY?

WE DON'T REALLY HAVE A STRATEGIC

PLAN OTHER THAN THE FACT THAT WE

HAVE RAIL, WE HAVE LAND, WE HAVE

WAREHOUSING.

SOUTHERN ARIZONA IS GROWING AS A

LOGISTICS HUB HAD.

SO I THINK WHAT WE'LL SEE IS

JUST ANY OF THOSE LOGISTICS

OPPORTUNITIES FOR TRANSPORTATION

OPPORTUNITIES BOTH LOCAL AND

INTERNATIONAL, THAT'S WHAT WE

SEE THE GROWTH IN.

RIGHT NOW, WITH EXPANSION OF OUR

INFRASTRUCTURE WE ARE PROBABLY

ONLY AT MAYBE 15% CAPACITY OF

WHAT WE ARE CAPABLE OF.

SO WE ARE ABLE TO BRING ON NEW

BUSINESS VERY QUICKLY AS FAR AS

RAIL OR WAREHOUSING LOGISTICS.

REALLY, I THINK JUST A GROWTH IN

THE OVERALL LOGISTICS IN

SOUTHERN ARIZONA.

>> THERE ARE THE SKEPTICS OUT

THERE WILL SAY THAT THE TUCSON

ECONOMY IS CHALLENGED, THAT THE

RAIL INDUSTRY IS NOT WHAT IT

ONCE WAS.

WHAT DO YOU SAY TO THEM?

>> I'D SAY THAT, YOU KNOW, BY

THE NUMBERS WE SEE AND THE

VOLUMES WE SEE, THE NUMBERS TELL

A DIFFERENT STORY.

THE WAY THAT THE ACTUAL ACTIVITY

THAT'S GOING ON, IT IS A MUCH

DIFFERENT PICTURE.

THE VOLUMES FOR OUR INTERMODAL,

INCLUDING THE INTERNATIONAL, ARE

CONTINUING TO GROW.

ALL OF THE OTHER COMMODITIES ARE

CONTINUING TO GROW.

SO, REALLY, I'D SAY THAT, YOU

KNOW F THEY WANT A TOUR THEY CAN

COME OUT AND I CAN SHOW THEM

EXACTLY WHAT WE ARE DOING AND

HOW REAL VIBRANT THE RAIL

ACTIVITY IS FOR SOUTHERN

ARIZONA.

>> THE PORT OF TUCSON'S PRIMARY

CUSTOMER IS UNION PACIFIC

RAILROAD.

ON LAST WEEK'S PROGRAM WE SHOWED

YOU HUNDREDS OF PARKED

LOCOMOTIVES ALONG THE UNION

PACIFIC NETWORK HERE IN SOUTHERN

ARIZONA.

THIS COMPANY SAYS IT IS A RESULT

OF THE ECONOMY.

THE 310 LOCOMOTIVES ARE STORED

IN MAINTENANCE UNTIL THEY ARE

PUT BACK INTO SERVICE WHICH IS

SLOWLY HAPPENING AS THE ECONOMY

IMPROVES.

UNION PACIFIC'S SPOKESMAN

TRAVELLED FROM THIEUSTON TO

TEXAS.

HERE HE IS NOW WITH HOW THE

RAILROAD INDUSTRY USES THE PORT

OF TUCSON.

>> THE PORT IS VERY VALUABLE TO

UNION PACIFIC.

IT'S ONE OF OUR PARTNERS THAT'S

VERY IMPORTANT TO US IN THIS

REGION.

WHAT THIS LOCATION ALLOWS IS FOR

OUR CHAINS CARRYING CARGO TO

COME AND TRUCKS ACCESS THOSE

CONTAINERS AND TAKE THEM WHAT WE

CALL THE LAST MILE OFF THE TRAIN

TO DISTRIBUTION CENTERS AND

WAREHOUSES SO THOSE CUSTOMER

PRODUCTS CAN GET INTO THE HANDS

OF THE CUSTOMERS.

WORKING WITH THE PORT OF TUCSON

HERE HAS ALLOWED US TO SHOW YOUR

CUSTOMERS, THE PEEP THAT SHIP ON

OUR TRAINS HOW EFFICIENT WE CAN

BE BY TAKING THEIR GOODS A LONG

DISTANCE AND GETTING THEM TO A

PLACE LIKE THE PORT OF TUCSON

WHERE THEY CAN GET LOADED AND

SORTED OUT AND INTO THEIR

CUSTOMERS' HANDS VERY QUICKLY

AND EFFICIENTLY.

>> WHAT SORTS OF CARGO COMES OFF

THE BOXCARS AND BOARDS TO SEMIS.

>> WHAT YOU SEE HERE AT PORT OF

TUCSON WE HAVE TWO KINDS OF

TRAINS THAT USE THIS FACILITY.

ONE IS THE INTERMODAL TRAINS

WHICH CARRY THE LARGE CARGO

CONTAINERS THAT YOU SEE COMING

INTO BIG SHIPS FROM THE OCEAN.

THEY GET LOADED ON A TRAIN AT A

PORT ALONE THE COAST.

WE BRING THEM ACROSS THE COUNTRY

TO A PLACE LIKE PORT OF TUCSON

HERE.

THEY HAVE CRANES THAT WILL TAKE

THOSE CONTAINERS OFF OF THE

TRAIN AND DROP THEM ON TO A SEMI

TRUCK.

THAT TRUCK WILL TAKE IT TO A

DISTRIBUTION CENTER OR

WAREHOUSE.

INSIDE THAT CARGO CONTAINER CAN

BE JUST ABOUT ANYTHING THAT A

CONSUMER WOULD ORDER.

WHETHER IT'S SOMETHING THAT YOU

ORDERED FROM AN ONLINE RETAILER,

YOU KNOW, FURNITURE, A BOOK, OR

ANY CLOTHING, THINGS LIKE THAT.

AS WELL AS SOME LARGER ITEMS

LIKE APPLIANCES OR HEAVY

EQUIPMENT CAN GET SHIPPED IN

THESE KIND OF CONTAINERS.

A LOT OF CONSUMER DRIVEN

PRODUCTS COME ON BOARD THESE

CARGO CONTAINERS.

THE OTHER TYPE OF TRAINS WE SEE

HERE AT THE PORT OF TUCSON ARE

WHAT WE CALL OUR MANIFEST

TRAINS.

THE BOXCAR TYPES OF TRAINS.

THEY ARE HAULING GOODS, WHETHER

IT'S AGRICULTURE PRODUCTS OR

FOOD AND BEVERAGE.

WE SHIP A LOT OF BEER AND

ALCOHOL ON OUR TRAINS THAT GET

TO PLACES LIKE HERE AT THE PORT

OF TUCSON WHERE THEY ARE LOADED

ONTO TRUCKS AND SEND OUT TO

DISTRIBUTION CENTERS.

THIS FACILITY ALLOWS US TO

INTERACT WITH OTHER MODES OF

TRANSPORTATION LIKE TRUCKS SO WE

CAN GET THOSE PRODUCTS INTO THE

HANDS OF THE CONSUMERS.

>> YOU JUST MENTIONED IT COMES

IN OFF OF A SHIP THAT MEANS FROM

CHINA, UNION PACIFIC, TO

PRODUCTS HERE IN THE U.S.

CAN YOU EXPLAIN THIS IS ACTUALLY

A COMPONENT OF WORK FOR YOU

GUYS.

>> ABSOLUTELY.

UNION PACIFIC IS A KEY PLAYER IN

INTERNATIONAL TRADE.

YOU KNOW ARC OF THE LO OF THE

PRODUCTS AND ITEMS THAT WE

CONSUME OR THAT BUY HERE IN THE

UNITED STATES COMES AND IS

MANUFACTURED OVERSEAS AND THOSE

PRODUCTS NEED TO GET INTO THE

HANDS OF THE CONSUMERS HERE IN

AMERICA.

AND A LOT OF TIMES THEY WILL BE

SHIPPED OVER IN BARGES.

AND THOSE LARGE CONTAINERS NEED

TO GET FROM THE COAST TO THE

INTERIOR OF THE UNITED STATES.

AND THAT'S WHERE FREIGHT RAIL

COMES INTO PLAY.

AND THAT'S THE VALUE OF THE

SERVICE THAT WE PROVIDE.

BECAUSE LARGE VOLUMES OF THOSE

MATERIALS CAN NOW COME IN AND BE

DELIVERED FILES AND MILES AND

MILES AND MILES FROM ANY SEAPORT

HERE IN THE UNITED STATES.

SO WE CAN FACILITATE THAT

TRANSPORTATION.

WE CAN PLAY THAT ROLE IN GETTING

GOODS FROM MANUFACTURERS INTO

THE HANDS OF THE CONSUMERS.

>> IT SOUND TO ME LIKE UNION

PACIFIC IS GROWING, IS BECOMING

MORE INNOVATIVE WITH

COLLABORATIONS LIKE THIS ONE.

IS THAT CORRECT?

>> FOR UNION PACIFIC, WE'VE BEEN

AROUND FOR MORE THAN 150 YEARS.

AND WE ARE SURVIVED AND GROWN

THROUGH THOSE YEARS THROUGH

COLLABORATIONS AND PARTNERSHIPS.

YOU KNOW, INITIALLY HERE WITHIN

THE UNITED STATES.

AND NOW AS THE ECONOMY IS GOING

GLOBAL FOR EVERYONE, WE ARE

WORKING WITH GLOBAL PARTNERS AS

WELL.

AND THAT'S THE FUTURE.

YOU KNOW, AS WE SEE MORE GLOBAL

COMMERCE AND GLOBAL ECONOMY,

THOSE GOODS NEED TO BE SHIPPED.

AND UNION PACIFIC IS PREPARED TO

TAKE ON THOSE CHALLENGES AS WE

EMBRACE A GLOBAL MARKETPLACE.

WE -- WE TALK ABOUT THE

ELECTRONIC AGE AND DIGITAL

ECONOMY AND THINGS LIKE THAT.

AND YOU KNOW, AS MUCH TIME AS WE

MAY SPEND ON THE INTERNET DOING

OUR BANKING, ORDERING, AND

PAYING FOR THINGS, THERE COMES A

POINT IN TIME WHEN THOSE GOODS

ACTUALLY HAVE TO BE DELIVERED

AND DISTRIBUTED.

THAT'S WHERE UNION PACIFIC PLAYS

ITS PART.

YOU CAN ORDER AND DO THINGS ON

LINE.

BUT YOU CAN'T DELIVER SOMETHING

ON LINE.

THAT'S WHERE FREIGHT RAIL AND

OUR PARTNERS IN OTHER MODES OF

TRANSPORTATION COME INTO PLAY.

>> WHERE DOES ARIZONA FIT IN THE

GROWTH OF UNION PACIFIC?

IT SOUNDS LIKE IT'S GROWING.

>> ABSOLUTELY.

OUR PRESENCE HERE IN ARIZONA IS

GROWING.

ARIZONA IS A KEY AREA FOR UNION

PACIFIC.

WE ARE SEEING A LEFT DEVELOPMENT

AND GROWTH ALONG THE BORDER.

AND HAVING ARIZONA BEING A

BUSINESS FRIEND LAE ENVIRONMENT,

YOU ARE SEEING A LOT OF

INDUSTRIES THAT ARE BEING

ATTRACTED HERE.

AND UNION PACIFIC WANTS TO HELP

THOSE INDUSTRIES GROW BY

PROVIDING MASS VOLUME LOGISTICS

THAT WE CAN OFFER THROUGH

FREIGHT RAIL.

SO AS ARIZONA GROWS UNION

PACIFIC WILL BE HERE TO SUPPORT

THAT GROWTH.

HOPEFULLY OUR PRESENCE HERE ALSO

MAKES ARIZONA AN ATTRACTIVE

PIECE FOR OTHER INDUSTRIES TO

LOCATE HERE AND TAKE ADVANTAGE

OF THE SERVICES THAT WE ARE

OFFERING.

ADDITIONALLY, JUST LOGISTICALLY

SPEAKING, ARIZONA SITS IN A

PRIME LOCATION FOR THE

TRANSPORTATION OF OUR GOODS, YOU

KNOW, ACROSS THE COUNTRY.

ARIZONA SITS RIGHT IN THE MIDDLE

OF WHAT WE CALL OUR SUNSET

SERVICE UNIT, WHICH CONNECTS LOS

ANGELES ALL THE WAY INTO TEXAS.

AND SO MAINTAINING OUR PRESENCE,

MAINTAINING OUR INFRASTRUCTURE,

USING OUR CAPITAL DOLLARS TO

MAKE SURE THAT OUR

INFRASTRUCTURE STAYS IN THE BEST

SHAPE POSSIBLE SO THAT WE CAN

CONTINUE THAT THOROUGHFARE

THROUGH THE STATE, THAT'S OF

HUGE IMPORTANCE FOR UNION

PACIFIC.

>> SO WHAT'S THE FUTURE OF RAIL?

WHAT ARE SOME OF THE CHALLENGES?

FOR MORE ON THAT I'M JOINED BY

ERIC ANDERSON THE TRANSPORTATION

DIRECTOR FOR THE MARICOPA

ASSOCIATION OF GOVERNMENTS.

HE JOINS US VIA OUR SISTER

STATION IN PHOENIX, KAAT.

ERIC, THANKS FOR JOINING US

TODAY.

>> THANK YOU, GLAD TO BE HERE.

>> ERIC, LET'S TALK ABOUT RAIL

INDUSTRY IN ARIZONA.

HOW SIGNIFICANT IS IT?

HAS IT GROEB OVER THE YEARS?

>> IT HAS GROWN, AS THE

STATEWIDE ECONOMY HAS --

CONTINUES TO GROW.

BOTH IMPORTS AND EXPORTS USING

RAIL HAVE CONTINUED TO GROW,

TOO.

ESPECIALLY ON THE FREIGHT SIDE.

THROUGHOUT ARIZONA.

THERE'S A LOT OF TRAINS GOING

THROUGH FLAGSTAFF.

AT ONE POINT PRIOR TO THE

RECESSION THERE WERE ALMOST 140

TRAINS A DAY GOING THROUGH THE

FLAGSTAFF AREA ON THE NSF LINE

UP THERE.

THEN THE EUN PACIFIC MAIN LINE

WHICH GOES THROUGH TUCSON HAS

ABOUT 60 TRAINS A DAY.

A LOT OF ACTIVITY IN THE STATE.

WHAT HE IS THE PROJECTION OR

HOPE WHEN IT COMES TO PASSENGER

COMMUTER RAIL.

OBVIOUSLY IN PHOENIX WE HAVE 26

MILES OF LATE RAIL NOW.

TUCSON HAS A MODERN STREET CAR

RUN INTO DOWNTOWN.

HERE IN THE PHOENIX AREA,

RIDERSHIP HAS EXCEEDED ALL

EXPECTATIONS.

I THINK IT'S A GOOD SIGN THAT

PEOPLE REALLY UNDERSTAND THE

ROLE OF WHAT WE CALL FIXED

GUIDEWAY TRANSIT LIKE LIGHT RAIL

TRANSIT.

OUR PLANS ARE TO CONTINUE TO

EXPAND THAT IN THE METRO AREA

BOTH TO THE NORTH, THE NORTHWEST

AND THE WEST PART OF THE VALLEY

HERE.

SO VERY OPTIMISTIC ABOUT THAT.

AND THEN WE'VE DONE A LOT OF

PLANNING FOR PASSENGER RAIL ON

THE RAIL LINES, COMMUTER RAIL,

CUSTOM WOULD COMPLIMENT,

HOPEFULLY AT SOME POINT IN THE

FUTURE WE WILL HAVE GOOD

PASSENGER SERVICE BETWEEN TUCSON

AND PHOENIX, TOO.

SO COMMUTER RAIL IS SOMETHING

THAT, IT MAY BE TEN-PLUS YEARS

OFF INTO THE HORIZON HERE IN THE

METRO AREA, BUT WE ALSO THINK

THAT'S GOING TO BE AN IMPORTANT

PART OF OUR TRANSPORTATION

SYSTEM MOVING FORWARD IN THE

FUTURE.

>> YOU TAKE CARS OFF THE

INTERSTATES AND OFF THE

HIGHWAYS, YOU PUT THEM ON RAIL

AND THAT JUST MAKES THINGS A

LITTLE BIT EASIER FOR PEOPLE.

>> IT CERTAINLY DOES.

WE SAW THE EVIDENCE OF THAT WHEN

WE HAD SOME MAJOR EVENTS HERE,

THE FINAL FOUR AND SUPER BOWL.

DURING THE SUPER BOWL WEEKEND,

LIGHT RAIL CARRIED 125,000

PERSONS IN ONE DAY.

AND THERE IS JUST NO WAY YOU CAN

MOVE THAT MASSIVE NUMBER OF

PEOPLE IN AND OUT OF THE

DOWNTOWN PHOENIX AREA AS AN

EXAMPLE.

SO AS WE CONTINUE TO BUILD UP,

OUR HIGHWAY CAPACITY CAN'T

CONTINUE TO EXPAND.

IT WOULD CREATE UNSAFE

CONDITIONS.

YOU CAN'T JUST KEEP ADDING

LANES.

SO YOU REALLY HAVE TO LOOK AT

THE NEXT OPTION, CUSTOM IS HIGH

CAPACITY TRANSIT, EITHER HEAVY

RAIL USING THE UNION PACIFIC AND

THE NSF LINES OR LIGHT RAIL,

WHICH IN THIS AREA IS ACTUALLY

IN THE STREET.

BOTH THOSE MODES HAVE A LOT OF

CAPACITY TO CARRY A LOT OF

PEOPLE.

AND THAT REALLY DOES RELIEVE

SOME OF THE -- SOME OF THE

PROBLEMS WE HAVE ON THE FREEWAY

SYSTEM.

HERE IN METRO PHOENIX WE ARE

ALWAYS GOING TO HAVE CONGESTION.

THERE ARE TOO MANY PEOPLE

WANTING TO GO TO THE SAME PLACE

AT THE SAME TIME.

SO THERE'S ALWAYS GOING TO BE

CONGESTION.

BUT THE RAIL ALTERNATIVE DOES

PROVIDE PEOPLE WITH OPTIONS.

AND SO THEY CAN GET OUT OF

TRAFFIC, ENJOY A NICE RIDE ON

THE TRAIN AND GET TO WHERE THEY

WANT TO GO.

>> DOES ARIZONA HAVE THE

INFRASTRUCTURE, THE ECONOMY,

EVEN THE LEADERSHIP TO SUSTAIN

PLANS FOR GROWTH WHEN IT COMES

TO RAIL.

>> FREIGHT TRANSPORTATION ON

RAIL IS EXTREMELY IMPORTANT.

THE MINDS HERE IN ARIZONA ARE

EXTENSIVE USERS OF THE FREIGHT

RAIL SYSTEM.

AND SO WE HAVE TO CONTINUE TO

MAKE SURE THAT WE HAVE HEALTHY

INFRASTRUCTURE IN THAT REGARD.

BUT AS IN THE CASE IN MANY AREAS

IN TRANSPORTATION, FUNDING

CONTINUES TO BE A CHALLENGE.

WE'RE ALWAYS TRYING TO

PRIORITIZE PROJECTS, MATCH THEM

UP WITH AVAILABLE FUNDING.

AND UNFORTUNATELY, SOMETIMES THE

RAIL PROJECTS ARE A LITTLE

BIT -- GO DOWN THAT LIST A

LITTLE BIT.

SO WE'LL CONTINUE TO LOOK FOR

FUNDING.

ESPECIALLY THE PHOENIX/TUCSON

PASSENGER RAIL PROJECT IN

PARTICULAR WILL REQUIRE A

SIGNIFICANT INVESTMENT BY THE

STATE TO GET THAT OFF THE

GROUND.

>> ASIDE FROM FUNDING BEING ONE

OF THE CHALLENGES, DOES

ENVIRONMENTAL COMPONENTS AS WELL

PLAY A ROLE IN THIS?

>> CERTAINLY THE ENVIRONMENTAL

KPOEN RENTS EXTREMELY IMPORTANT,

ESPECIALLY IF WE ARE LOOKING AT

NEW RAIL CORRIDORS.

ON THE COMMUTER RAIL SIDE IT'S

ANTICIPATED THAT THE COMMUTER

RAIL OPERATIONS WILL HOPEFULLY

OPERATE IN THE SAME RAILROAD

CORRIDORS THAT WE HAVE TODAY.

LIGHT RAIL IS -- IN THIS REGION

IS RUNNING IN THE STREETS FOR

THE MOST PART.

AND SO THE ENVIRONMENTAL ISSUES

ARE A LITTLE BIT LESS

SIGNIFICANT BECAUSE YOU ARE

ALREADY HAVING KIND OF A

DISTURBED ENVIRONMENT IN THAT

REGARD.

>> WE OFTEN HEAR IN A THE RAIL

INDUSTRY IS NOT WHAT IT USED TO

BE.

BUT IT SOUNDS LIKE IT IS, IT'S

JUST CHANGING, IT'S TAKING ON A

NEW FORM.

>> I THINK THAT'S TRUE.

I THINK THAT THE RAIL INDUSTRY

CONTINUES TO ADVANCE WITH BETTER

TECHNOLOGIES.

ONE OF THE THINGS WE ARE LOOKING

FORWARD TO IS POSITIVE TRAIN

CONTROL, WHICH HOPEFULLY WILL

PROVIDE EXTRA LEVEL OF SAFETY

FOR -- FOR THE RAILROAD INDUSTRY

IN ARIZONA.

ACTUALLY A NATIONAL -- A

NATIONWIDE OBJECTIVE.

BUT ESPECIALLY AS WE MOVE INTO

THE MORE PASSENGER RAIL

ACTIVITY, SAFETY IS GOING TO

BECOME EVEN MORE IMPORTANT IN

THE FUTURE.

>> AND THAT'S OUR PROGRAM.

FOR ALL OF US AT ARIZONA PUBLIC

MEDIA I'M LORRAINE RIVERA.