Colorado Pacific Rio Grande Railroad

Iowa Pacific Holdings and its subsidiaries suffered severe financial troubles and were generating large debts.[2] In 2017, both the SLRG and one other IPH subsidiary, the Oregon-based Mount Hood Railroad (MHRR), loaned $5 million from Big Shoulders Capital, an Illinois-based investment firm, but the two railroads defaulted on the loan, consequently owing the firm $4.6 million in debt.[2] Under IPH ownership, both companies were also prone to substantial claims by the IRS.[2]

In September 2019, the SLRG and MHRR were both forced into Chapter 11 bankruptcy, and the two companies were appointed a trustee, Novo Advisors, by a U.S. bankruptcy court in Denver.[2][3] Between 2020 and 2021, the trustee maintained the SLRG’s freight operations and spent $1.3 million rehabilitating parts of the line and another $250,000 cleaning up the railyard in Alamosa.[4] Throughout the bankruptcy proceedings, the railroad was operated by the trustee, with various pieces of rolling stock put up for sale.[5][6]

On September 12, 2022, Denver-based railroad holding company OmniTRAX announced it would purchase the SLRG at a cost of $5.7 million.[7][8] This raised concern among some local citizens who cited OmniTRAX's recent history of abandoning lines it couldn't make profitable, and from trails advocates who worried OmniTRAX would not let them expand trail networks among the railroad's right-of-way.[9][10]

Two new bids for the railroad followed in November 2022, one from one of the SLRG's largest creditor and the other from Stefan Soloviev.[10] On November 17, 2022 Soloviev's final bid of $10.7 million was selected by the bankruptcy trust.[11][12] The bankruptcy judge approved the sale, which will become effective upon Surface Transportation Board approval.[13]

Under Soloviev ownership, many changes are being planned, with new locomotives being brought in, track rehabilitation, and future railroad expansion.[14] A total of 6 ex-BNSF SD70MACs have been acquired from BUGX, and 1 GP40-2 from the Royal Gorge Route Railroad, as of August 2023.

The railroad operates on 154 miles of track.

• Alamosa east to Walsenburg (over La Veta Pass), where it connects with the Union Pacific Railroad and BNSF Railway.
• Alamosa south to Antonito, where it meets the narrow gauge Cumbres and Toltec Scenic Railroad.
• Alamosa west to South Fork. It meets the San Luis Central Railroad on this line in Monte Vista.

SLRG excursion train pulled by Ex-LS&I 18, climbing out of La Veta, Colorado, 2008.

A subsidiary heritage railroad, the Rio Grande Scenic Railroad, operated passenger excursion trains between Alamosa and La Veta during the summer months from 2006 to 2019. They also offered trips from Alamosa to Antonito, where passengers could connect with the narrow gauge Cumbres and Toltec.[15]

These lines were freight only for decades under the previous railroad owners, making it popular with railroad enthusiasts who log rare mileage. The route over Veta Pass offered historic views inaccessible by road, and outdoor events were held at the Fir Concert Grounds near highest point on the railroad.[16]

Between 2007 and 2013, the fan trips would often be pulled by a steam locomotive. First, there was Ex-Southern Pacific 2-6-0 “Mogul” type No. 1744, but it was taken out of service quickly due to firebox issues. The only other steam locomotive that operated on the SLRG was Ex-Lake Superior and Ishpeming 2-8-0 “consolidation” type No. 18.

SLRG discontinued the passenger excursions in 2019 following a wildfire that damaged the Fir Concert Grounds, and then later when the railroad entered bankruptcy and began liquidating unnecessary assets.[17] This liquidation involved the sale of locomotives and rolling stock to the Colebrookdale Railroad and the Reading Blue Mountain and Northern Railroad in Pennsylvania.[18][19]