By Railfan & Railroad Staff
DENVER — Colorado’s San Luis & Rio Grande is expected to be sold at auction this week.
If a U.S. Bankruptcy Court judge approves it, the railroad’s bankruptcy trustee expects to sell everything, including track, locomotives, buildings and more. Of course, a sale is not guaranteed; last year the trustee had made similar plans to sell the railroad at an auction that later fell through.
San Luis & Rio Grande operates on three former Denver & Rio Grande Western routes out of Alamosa, Colo. It was founded by RailAmerica in 2003 after Union Pacific sold off the lines. Iowa Pacific purchase the route in 2005, but it was beset with financial troubles and went bankrupt in 2021. Since then a number of railroads associated with Iowa Pacific have been sold off, including Oregon’s Mount Hood Railroad.
According to Alamosa News, the trustee has gotten multiple letters of interest from prospective buyers. If everything goes according to plan, the auction will be held this week.