USA: OmniTRAX has entered into a contract to purchase the assets of the San Luis & Rio Grande Railroad in Colorado out of bankruptcy.
The transaction announced on October 12 is expected to close in late 2022. The SLRG will be OmniTRAX’s 26th rail operation, taking its total network to more than 3 200 km across North America.
The Class III SLRG has three lines radiating from Alamosa to Walsenburg, Antonito and South Fork which total 245 km, and handles traffic including grain, minerals and rock. It was previously owned by Iowa Pacific Holdings, which had acquired it in December 2005 from RailAmerica, which had in turn acquired the network from Union Pacific in June 2003.
‘As a Colorado company, we know how important the SLRG has been to the San Luis Valley and Colorado’s economy’, said OmniTRAX CEO Dean Piacente. ’We are proud to help revitalise this railroad to bring more business and jobs to the region and our state.
’The SLRG removes tens of thousands of trucks from Colorado’s highways and the Sangre de Cristo Mountain range’s scenic La Veta pass. Rail continues to be the most eco-friendly freight solution over land and that’s especially important to such a vibrant part of our state.’