SAN ANTONIO — In a reversal of course, Union Pacific Railroad officials sat down with Toyota on Friday to resolve a conflict about rail access at a Bexar County site the automaker is considering for an assembly plant, the San Antonio Express-News reported.
Union Pacific executives flew to Toyota’s U.S. headquarters near Cincinnati to discuss whether other rail companies would be allowed to use its tracks in South Bexar County if Toyota builds a $750 million truck-production factory there.
San Antonio officials were encouraged by the meeting. They had worried the two companies had reached an impasse in their discussions. Some had criticized the rail carrier, saying it backed away from negotiations with Toyota.
“This is big,” Mayor Ed Garza said of the new round of discussions. “It’s a positive move. It allows us to get closer to finalizing San Antonio’s package for the plant.”
As a result of the potential breakthrough, San Antonio officials are postponing a trip they had scheduled for Wednesday to meet Union Pacific officials at the company’s Omaha, Neb., headquarters, Garza said.
The trip was meant to encourage the rail carrier to press on in discussions with Toyota.
“I talked to a top Toyota official, and he said they had a positive meeting today,” County Judge Nelson Wolff said Friday. “He told me it’s the first indication that Union Pacific is willing to move forward and negotiate.”
State officials have estimated the proposed Toyota facility would create a huge economic impact for San Antonio and the surrounding area, creating 16,000 jobs and raising living standards.
City, state and federal officials lobbied Union Pacific heavily in recent days to negotiate with Toyota and allow competitors to use its lines. Toyota has said it wants access to two rail carriers if it builds a plant here so it can keep down shipping costs.
Union Pacific has balked at sharing its rail lines, saying the traffic of competitors would devalue its expensive tracks. If Toyota is unable to access more than one rail carrier here, Bexar County runs the risk of losing the plant to a site near West Memphis, Ark., which is a finalist for the Toyota’s investment. The Arkansas location has access to both Union Pacific and Burlington Northern rail lines.
Toyota officials were unavailable for comment Friday. Union Pacific officials confirmed the meeting, but declined to discuss details of the negotiations. The companies will continue talks after Union Pacific officials return to Omaha this weekend, spokeswoman Kathryn Blackwell said.
“We’ve never stopped talking with Toyota,” she said. “They’re a valued customer. We’re responsive to their needs and business concerns.”
Talks went on hold recently because Toyota had slightly delayed making a decision about the plant, she added. But despite the new developments, local officials said they aren’t stopping the work of the Bexar County Rural Rail Transportation District, a new body that could fund rail construction near the proposed Toyota site, providing access to other carriers.
The county this week appointed five directors to the rail district, including former Clinton Cabinet member Henry Cisneros and a former Federal Railroad Administration deputy administrator.
What’s more, Sen. Jeff Wentworth, R.-San Antonio, said Friday he’ll file a bill when the Legislature convenes in January that would allow the state to own and manage rail facilities similar to the way in provides road infrastructure.
“We intend to press on with different options, different routes and different financing packages,” said Mario Hernandez, CEO of the San Antonio Economic Development Foundation, which leads city efforts to attract new businesses. “We’re confident we can get this done one way or another.”