New Mexico breaks ground on commercial spaceport

PHOENIX (Reuters) - New Mexico Governor Bill Richardson broke ground on Friday on construction of Spaceport America, the world's first facility built specifically for space-bound commercial customers and fee-paying passengers.

The $198 million project, which is being funded by the New Mexico state government, is located on a remote high-desert range near the town of Truth or Consequences.

British tycoon Richard Branson's space tours firm, Virgin Galactic, will use the facility to propel tourists into suborbital space at a cost of $200,000 a ride.

"After all of the hard work to get this project off the ground, it is gratifying to see Spaceport America finally become a reality," Richardson said.

"This groundbreaking ceremony is an important step toward our goal of being at the forefront of a vibrant new, commercial space industry."

Construction will begin with a runway at the site, followed by a terminal and hangar facility later in the year, Spaceport America said.

Virgin Galactic is investing more than $300 million in developing a new space launch system that will operate from the site after it opens.

The spaceship hitches a ride up to around 50,000 feet attached to a specially designed carrier aircraft. When released from the aircraft, it is designed to hurtle into suborbital space powered by a rocket.

Virgin Galactic President Will Whitehorn said the firm already had taken some 300 advanced bookings and planned to begin flights from the spaceport within two years.