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Colorado Pacific Rio Grande Railroad

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Not to be confused with Colorado Pacific Railroad, also owned by the Soloviev Group.

Colorado Pacific Rio Grande Railroad
Overview
Parent companyThe Soloviev Group
HeadquartersAlamosa, Colorado
Reporting markCXRG
LocaleColorado
Dates of operation2003–Present
PredecessorDenver & Rio Grande Western, Southern Pacific, Union Pacific, San Luis Central Railroad
Technical
Track gauge4 ft 8+1⁄2 in (1,435 mm) standard gauge
Length167 miles (269 kilometres)
Other
Websitehttps://cxrgrr.com/

The Colorado Pacific Rio Grande Railroad (formerly the San Luis & Rio Grande Railroad) is a class III railroad operating in south-central Colorado. It runs on 154 miles (248 km) of former Denver and Rio Grande Western Railroad tracks on three lines radiating from Alamosa and interchanges with the Union Pacific Railroad in Walsenburg. Much of the railroad is located in the San Luis Valley. In 2022, it was purchased by Stefan Soloviev.

History

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The oldest predecessor of the railroad was the Denver and Rio Grande Railroad, which was chartered in 1870. The line over La Veta Pass to Alamosa and Antonito was originally envisioned as part of an ambitious and never-realized narrow gauge line linking Denver with Mexico City. The narrow gauge tracks crossed the pass in 1877 and reached Alamosa on July 6, 1878. The railroad was pushed on to Antonito by 1880 and ultimately to Santa Fe and Silverton. The D&RG built west from Alamosa, completing the line to South Fork and its terminus at Creede in 1881.

By the late 1880s, the inherent isolation of narrow gauge railroads from the national network began to put them at a competitive disadvantage. The D&RG converted the La Veta Pass and the Creede lines to standard gauge around 1900. The line to Antonito was also converted to standard gauge, but a third rail, laid to three-foot gauge, remained to Alamosa until the end of regular narrow gauge operation in 1968. Coincident with the conversion to standard gauge, the D&RG realigned the route over La Veta Pass to lower the summit, straighten curves, and reduce grades.

In 1908, the D&RG was consolidated with the Rio Grande Western to form the Denver and Rio Grande Western. In 1988, the DRGW merged with the Southern Pacific Railroad; the Union Pacific Railroad purchased and merged the SP in 1996. In June 2003, the UP sold the Walsenburg - Alamosa line and its other lines in the San Luis Valley to shortline railroad conglomerate RailAmerica. The Derrick - Creede line, which had been out of service, was sold to the Denver and Rio Grande Historical Foundation as a tourist line. RailAmerica sold the San Luis and Rio Grande Railroad (SLRG) to Iowa Pacific Holdings (IPH) in December 2005.[1]

Iowa Pacific Bankruptcy

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See also: Iowa Pacific Holdings § Dissolution

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]

Soloviev Group ownership

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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][14]

Under Soloviev ownership, many changes are being planned, with new locomotives being brought in, track rehabilitation, and future railroad expansion.[15] 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.

On Augusta 23, 2024, a filing with the Surface Transportation Board (Docket No. FD 36795) revealed that Colorado Pacific San Luis would be purchasing the San Luis Central Railroad, a 13-mile agricultural short line that connects to the CXRG tracks at Monte Vista.[16]

Operations

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Trackage

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CPRG locomotives parked in Alamosa, CO

The railroad operates on 154 miles of track.

Heritage railroad

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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.[17]

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.[18]

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.[19] This liquidation involved the sale of locomotives and rolling stock to the Colebrookdale Railroad and the Reading Blue Mountain and Northern Railroad in Pennsylvania.[20][21]

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  • SLRG yard in Alamosa on October 23, 2012
    SLRG yard in Alamosa on October 23, 2012
  • Diesel engine SLRG #115 in Alamosa on October 22, 2012
    Diesel engine SLRG #115 in Alamosa on October 22, 2012

References

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  1. ^ "San Luis & Rio Grande Railroad". Retrieved January 17, 2022.
  2. ^ a b c d Franz, Justin (September 13, 2019). "San Luis & Rio Grande, Mount Hood Railroad placed into receivership". Trains. Archived from the original on January 26, 2021. Retrieved September 19, 2023.
  3. ^ "Former Iowa Pacific Equipment Put Up For Sale". Railfan & Railroad Magazine. March 4, 2021. Retrieved June 13, 2021.
  4. ^ "San Luis & Rio Grande Railroad prepares to come out of bankruptcy". August 31, 2021. Retrieved January 26, 2022.
  5. ^ "Iowa Pacific Railroad equipment in late 2021". December 31, 2021. Retrieved January 17, 2022.
  6. ^ "San Luis and Rio Grande Railroad may go to auction". Retrieved January 17, 2022.
  7. ^ "Denver-based OmniTrax to purchase San Luis & Rio Grande Railroad". Alamosa Citizen. September 12, 2022. Retrieved September 17, 2022.
  8. ^ "Colorado Pacific RR wins SLRG auction". Valley Courier. November 17, 2022. Retrieved December 24, 2022.
  9. ^ "OmniTrax shows a mixed record of success with short line rail acquisitions". Alamosa Citizen. September 14, 2022.
  10. ^ a b "Soloviev Group enters bidding for SLRG Railroad". Alamosa Citizen. November 5, 2022. Retrieved December 24, 2022.
  11. ^ "Colorado Pacific Railroad wins auction for SLRG". Alamosa News. Retrieved November 18, 2022.
  12. ^ "Late bid leads to new owner for San Luis & Rio Grande". Trains. November 19, 2022. Retrieved December 24, 2022.
  13. ^ Ferrell, Lyndsie (December 9, 2022). "Bankruptcy judge approves bid for SLRG railroad". The Monte Vista Journal. Retrieved December 24, 2022.
  14. ^ Blevins, Jason (December 31, 2023). "The New York billionaire looking to change agriculture with Colorado farmland". The Colorado Sun. Retrieved December 31, 2023.
  15. ^ "Colorado Pacific Rio Grande Railroad". May 20, 2014. Retrieved August 27, 2023.
  16. ^ "Filings". Surface Transportation Board. Retrieved August 30, 2024.
  17. ^ "Rio Grande Scenic Railroad website". Retrieved April 7, 2019.[dead link‍]
  18. ^ "Historic & Scenic Colorado Trains | Colorado.com". www.colorado.com. 4. Rio Grande Scenic Railroad. Archived from the original on October 4, 2017. Retrieved March 18, 2018.{{cite web}}: CS1 maint: location (link)
  19. ^ "Bankruptcy Court Judge Authorizes Chapter 11 Trustee for San Luis & Rio Grande Railroad, Inc. To Auction 100% of Membership Interest in Its Wholly-Owned Subsidiary Massachusetts Coastal Railroad, LLC" (Press release). May 18, 2020.
  20. ^ "Colebrookdale Railroad acquires a second steam locomotive". Trains. Kalmbach Media. March 29, 2021. Archived from the original on March 29, 2021. Retrieved July 23, 2021.
  21. ^ Cupper, Dan (July 23, 2021). "Reading & Northern acquires 11 ex-San Luis & Rio Grande cars". Trains. Kalmbach Media. Archived from the original on July 23, 2021. Retrieved July 23, 2021.
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