By the late 1880s, the inherent isolation of narrow gauge railroads from the national network began to put them at a competitive disadvantage.

Coincident with the conversion to standard gauge, the D&RG realigned the route over La Veta Pass to lower the summit, straighten curves, and reduce grades.

RailAmerica sold the San Luis and Rio Grande Railroad (SLRG) to Iowa Pacific Holdings (IPH) in December 2005.

[1] Iowa Pacific Holdings and its subsidiaries suffered severe financial troubles and were generating large debts.

[2][3] Between 2020 and 2021, the trustee maintained the SLRG's freight operations and spent $1.3 million rehabilitating parts of the line and another $250,000 cleaning up the railyard in Alamosa.

[4] Throughout the bankruptcy proceedings, the railroad was operated by the trustee, with various pieces of rolling stock put up for sale.

[5][6] On September 12, 2022, Denver-based railroad holding company OmniTRAX announced it would purchase the SLRG at a cost of $5.7 million.

The route over Veta Pass offered historic views inaccessible by road, and outdoor events were held at the Fir Concert Grounds near highest point on the railroad.

SLRG discontinued the passenger excursions in 2019 following a wildfire that damaged the Fir Concert Grounds, and then later when the railroad entered bankruptcy and began liquidating unnecessary assets.