By M.T. Burkhart

ALAMOSA, Colo. — Denver-based OmniTrax plans to purchase the bankrupt San Luis & Rio Grande Railroad, trustee William Brandt told the Alamosa Citizen newspaper. The deal must be approved by the U.S. Federal Bankruptcy Court and the U.S. Surface Transportation Board. The trustee for the railroad has been trying to find a new operator for more than two years. The San Luis & Rio Grande was previously operated by the now-bankrupt Iowa Pacific.

“[OmniTrax] is a major North American rail operator who isn’t going to do this on a shoestring,” Brandt told the paper. “They can write the check. Their level of operation and their reputation in the industry is beyond reproach.” Brandt wouldn’t disclose the terms of the agreement before they are filed in federal bankruptcy court but said the company will pay at least the $5.75 million minimum bid for the railroad.

The 155-mile short line railroad crosses La Veta Pass over the Sangre de Cristo Mountains and connects Colorado’s eastern plains to the San Luis Valley. The Union Pacific interchange is at Walsenburg, Colo. The line was well known for its recent history of colorful passenger excursion operations.