ALAMOSA — When the auction for the San Luis Rio Grande Railroad happened in 2022, the scene was akin to something in a movie. OmniTRAX, a short line railroad operator out of Denver, had announced in September that they purchased the railroad with a bid of $5.7 million, although the official auction had not yet been held.

Two months later, Stefan Soloviev, chairman of the Soloviev Group that operates across eight sectors of industry including a very strong presence in agriculture and a short line railroad on the eastern Plains, entered the picture when he placed a bid. Soloviev then stunned everyone by showing up at the auction in person.  

Over the next three hours, Soloviev competed against Big Shoulders Capital and OmniTRAX, ultimately outbidding the two with an 86% increase over OmniTRAX’s original bid of $5.7 million.

William Brandt, bankruptcy trustee who had been managing the railroad, described the bidding as “very spirited”.  He then went on to state, “This is great news. A responsible operator for the railroad in the Valley. And given the value that was created in the auction, the creditors and the others will be very thankful. There will be some money to pay bills.”

Several counties, who were owed significant amounts of money for back taxes, were among those creditors.

Within 24 hours of the federal judge approving the bid, Soloviev and Matt Prince, president of CWC Rail and general manager of the Colorado Pacific Rio Grande Railroad, came to the Valley and, along with railroad employees, traveled the length of the railroad, via HyRail truck, up La Veta Pass.

The Soloviev Group took over the railroad in February of 2023 and, in a little more than a year, have already built strong relationships with municipalities.

“The relationship with Colorado Pacific Rio Grande RR has been refreshing,” says Gigi Dennis, city manager for Monte Vista. “Their team meets with the city regularly and we find solutions that are mutually beneficial to both of our needs.”

“Alamosa County has struggled in years past to get cooperation from the railroad to improve some of our crossings that need attention,” says Vern Heersink, Alamosa County commissioner.  “The current owners, however, have been very responsive and open to working in partnership with the county to address four crossings this year.  Colorado Pacific Rio Grande Railroad is a pleasure to work with, and we're excited to move forward on something tangible for our community.”

As was proven when Soloviev bought the short line railroad on the eastern plains that became Colorado Pacific, the Colorado Pacific Rio Grande Railroad is clearly holding up their end on making the railroad a strong, dependable operator in the valley.

“We’ve assembled a fantastic team of hardworking individuals in a variety of positions, including Train Service – meaning engineers and conductors, Maintenance of Way, Mechanical Operations and Management,” Prince says. “Each department relies on the others and without each and every aspect, we would not be able to operate.”

The Colorado Pacific Rio Grande Railroad is also unlike any other freight railroad in a number of ways. “First of all,” Prince says, “the elevation at which we operate is the highest operating freight railroad in North America.  The top of La Veta Pass is 9,242 feet above sea level.

“And the grade of the mountain ranges from 2.4-3.4 per cent at our steepest portions of the mountain. This may not seem like a lot, but when pulling a train that is 3,000 tons, the elevation grade is significant.”

(If you’re trying to calculate that in your head, that’s equivalent to pulling six million pounds uphill.)

Currently, CPRG Railroad services customers from Imerys (a perlite facility) and Red Hill Lava (a lava rock mining, production and shipping operation) to Poole Chemical, Wilbur Ellis, Monte Vista Coop and Coors.

They also interchange cars twice a week with the San Luis Central, a short line railroad, whose customers include other fertilizer businesses and agricultural goods such as wheat and potatoes.

When asked where they’re looking to grow, Prince says, “We’re looking to help our current customers in any way we can so that their businesses will grow – that obviously helps us as well. We also hope to see businesses move to the area that would be interested in rail freight shipping. And we’re also encouraging the return to rail freight shipping for customers who have moved primarily to trucking.”

FREIGHT RAILROAD – CHEAPTER, BETTER FOR THE ENVIRONMENT

“Shipping by freight railroad out of the San Luis Valley makes sense,” Prince says. “When it comes to cost effectiveness, safety and the environment, shipping by rail wins out.”

According to the Association of American Railroads, rail cars can hold three to four truckloads of cargo, meaning a single freight train can haul a load that would otherwise require more than 300 trucks.

Freight trains can also move one ton of goods about 470 miles on a single gallon of gas compared to a truck that gets about 134 miles per gallon of diesel.

There are also significant benefits to the environment as rail emits 75% fewer greenhouse gas emissions than over-the-road shipping.

“LOCAL AND STATE SUPPORT IS VITAL”

“Our goal is to provide a service to members of our community that not many people can provide, and our expertise in the way we operate, even with the challenges we face, is hard to beat,” Prince says.

He recognizes that some commodities aren’t going to be candidates for rail freight shipping. “But those commodities that can be shipped can do so at a fraction of the cost compared to trucking - not to mention taking as many trucks off the road as possible will only benefit the safety of passenger traffic, the environment and cause less wear and tear on Colorado highways.”

At the same time, Prince says that local support is important and “increased community knowledge and understanding of how  we operate” is what allows the railroad to thrive, which, in turn, benefits the community.

“Support at the state level is also vital,” he adds, “so far as regulation, financial assistance and so forth is concerned.”

Since the first tracks were laid in the west, successful railroads have been crucial to communities, especially those located in more rural parts. The Colorado Pacific Rio Grande Railroad takes that relationship seriously.  

“We’re excited to be in the valley,” says Prince, who appears to be so optimistic about the future that he has bought property in the area. “We look forward to serving and being part of the community and helping the Valley grow.”