US-based railroad and transportation management company OmniTRAX has signed a contract to take over the assets of bankrupt San Luis and Rio Grande Railroad (SLRG).
Financial terms of the transaction were not shared.
The deal will extend OmniTRAX’s rail network to over 2,000 miles across North America.
It will also double the firm’s Colorado presence.
The 155-mile railroad, which was originally built in 1870, has played a significant part in moving freight across the west.
It also serves as a crucial state-wide freight connection between the San Luis Valley and the eastern plains of Colorado.
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The purchase of SLRG will help OmniTRAX offer expanded access for active rail customers of the line, in addition to unlocking new opportunities to increase the economic base of the region.
This deal, which represents OmniTRAX’s 26 rail operation, is anticipated to complete by the end of this year.
OmniTRAX CEO Dean Piacente said: “As a Colorado company, we know how important the SLRG has been to the San Luis Valley and Colorado’s economy.
“The Broe Group companies have grown with Colorado for 50 years and 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.”
OmniTRAX, an affiliate of The Broe Group, offers transportation and supply chain management services to railroad and port companies.
The company also offers intermodal and industrial switching operations to railroads, ports, and a diverse group of industrial companies.