Economy’s impact if railroad folds

ALAMOSA — The current prospect of San Luis and Rio Grande Railroads shutting down has the potential to have a profound impact on the San Luis Valley’s economy in the coming months.

An economic impact report done by the City of Alamosa in 2016 showed that in 2015 alone, the railroad had an impact of $3,948,619. From that total, $2,510,680.70 came from visitors and events. The numbers for the 2018 and 2019 seasons are expected to be much higher due to an increase in excursion trains.

However, the railroad has long served as more than a tourist attraction. It has played a crucial role in the transport of potatoes, fertilizer and grain. Should the railroad no longer be operational, an anticipated increase of $2 million-plus in transportation costs could be the result of its absence.

Rio Grande County Commissioner John Noffsker estimated that the potential loss of revenue from lack of railroad service could total anywhere from $15 million to $20 million.

“Potato shippers have already cut back on rail shipments due to reliability,” he said. Noffsker went on to observe that under U.S. Surface Transportation Board rules, shippers have a right to rail transportation and service would continue for the interim under what is known as the Common Carrier Obligations.

However, the more significant issue remains that the property taxes due from the railroad to Alamosa, Conejos, Costilla, Huerfano and Rio Grande counties. As of Sept. 30, the total owed was $2,058,989.53.

Noffsker also pointed out that Huerfano and Costilla counties have both stated their intent to join with Rio Grande County in its efforts to address the situation.

Noffsker called the current scenario “a moving target” and expressed uncertainty as to how the challenges ahead will play out. He is sure that any potential hole left would be a big one when it comes to dollars.