Santa Fe Southern Railway
A New Mexico short-line railroad operating the 18.1-mile Lamy–Santa Fe route, with excursion passenger service marketed as Sky Railway.
Last updated August 26, 2026
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Overview
Santa Fe Southern Railway is a short-line railroad in New Mexico that owns and operates the former Atchison, Topeka and Santa Fe Railway branch between Lamy and Santa Fe. The route extends approximately 18.1 miles, or 29.1 kilometres, and runs alongside the Santa Fe Rail Trail. Although the company has retained the ability to handle freight, its public identity has increasingly been associated with tourist and excursion trains operated under the Sky Railway brand. The railway began operations in 1992 after the Atchison, Topeka and Santa Fe Railway discontinued service on the branch. A group of local businesspeople acquired the track and established Santa Fe Southern to preserve rail service for the Santa Fe area. Freight remained part of the business, but passenger excursions were subsequently added, creating a tourism-oriented operating model based on scenic journeys, special events, charters and seasonal trains. The company's traffic fluctuated substantially. It handled 401 freight carloads in 2004 and carried 25,907 passengers in 2007. By 2009, freight traffic had fallen to 25 carloads and passenger volume to 12,208. In its later operating period, the railroad sometimes combined freight and passenger movements in mixed trains, generally at least twice per week depending on the season. It also offered private charters, including weddings, parties and corporate events, as well as private varnish service and access for film and television productions. Santa Fe Southern changed ownership in October 2010 when Australian-based STI-Global, Ltd. acquired the railroad. STI-Global stated that the line would provide an opportunity to test safety systems produced by the company. In May 2011, Santa Fe Southern was evicted from its headquarters in the Santa Fe depot so that the site could be used for a planned visitors' centre associated with New Mexico Rail Runner service. Following the 2012 season, the railroad entered a severe operational and financial downturn. In May 2013, its board chairman announced that all full-time staff and many seasonal employees had been laid off, and no trains operated during 2013. A recovery attempt followed in 2014, when Las Vegas Railway Express agreed to provide capital for track rehabilitation and jointly operate excursion trains with Santa Fe Southern. The partnership produced a reported summer season, but Las Vegas Railway Express ended the arrangement in September 2014. Future excursion tickets were cancelled and refunded, and remaining freight operations were suspended. For a period afterward, the railway lacked regularly scheduled passenger service, although it continued to support private charters and occasional screen productions. The railway later came under new ownership, including author George R. R. Martin and entertainment and restaurant entrepreneur Bill Banowsky. Passenger excursion operations resumed in December 2021 under the Sky Railway name. The operating concept combines the historic short-line route with themed journeys, hospitality and entertainment, positioning the line as a regional tourism attraction rather than solely as a conventional freight carrier. Its rolling stock includes coaches formerly associated with the Central Railroad of New Jersey, a flatcar and a caboose. Motive power has included an EMD GP7 and an EMD GP16 rebuilt from a GP7. The railroad also received prominent exposure through its use in the fifth season of the television series Breaking Bad.
History
Santa Fe Southern Railway was established in 1992 after the Atchison, Topeka and Santa Fe Railway ended operation of its branch between Lamy and Santa Fe. Local businesspeople purchased the track and formed a short-line company to maintain rail service in the area. The line's principal role was freight transportation, but the company later developed passenger excursions and other tourism-related services. The railway's traffic record illustrates the challenge of operating a short, lightly trafficked branch line. Freight reached 401 carloads in 2004, while passenger service reached 25,907 riders in 2007. Both categories declined sharply by 2009, when the railroad recorded 25 freight carloads and 12,208 passengers. In later years, the company used mixed trains carrying both freight and passengers, with frequency varying by season. It also operated or hosted charter trains, private varnish excursions, weddings, parties, corporate events and film productions. In October 2010, Australian company STI-Global, Ltd. purchased Santa Fe Southern. STI-Global described the railroad as a setting in which it could test safety systems. The following year, Santa Fe Southern lost its headquarters at the Santa Fe depot, which was designated for redevelopment as a visitors' centre connected with New Mexico Rail Runner passengers. The railroad experienced a particularly difficult period after the 2012 season. In May 2013, its board chairman announced the dismissal of all full-time employees and many seasonal workers. The railroad did not run trains during 2013. In April 2014, Las Vegas Railway Express announced a cooperative plan under which it would supply capital for restoring the line and Santa Fe Southern would operate excursion trains. The partnership ran trains during the summer, but Las Vegas Railway Express ended the arrangement in September. Passengers holding tickets for later excursions were refunded, and freight service was also suspended. Santa Fe Southern subsequently lacked regular scheduled excursions, although it continued to undertake private charters, private varnish operations and occasional film or television work. A later ownership group included George R. R. Martin and Bill Banowsky. Under the Sky Railway brand, the railroad restarted excursion operations in December 2021. This revival placed themed, scenic and hospitality-focused passenger experiences at the centre of the line's public identity while preserving the underlying Santa Fe Southern Railway infrastructure. The railway's equipment has included coaches formerly owned by the Central Railroad of New Jersey, a flatcar and a caboose. Its locomotives have included an EMD GP7 and an EMD GP16 rebuilt from a GP7. The line received broader public recognition through Breaking Bad, whose fifth-season episode "Dead Freight" used the railroad in its fictional train-heist storyline. The Santa Fe Rail Trail runs parallel to much of the route, linking the railway with a wider recreational corridor in the Santa Fe area.
- 2021
Sky Railway revival
[1]Excursion operations resumed in December under the Sky Railway brand after a change in ownership.
- 2014
Excursion partnership and suspension
[1]A partnership with Las Vegas Railway Express supported a summer excursion season before ending in September and leaving regular service suspended.
- 2013
Operations cease for the year
[1]Following extensive layoffs, the railroad operated no trains during 2013.
- 2010
Acquisition by STI-Global
[1]STI-Global, Ltd., an Australian-based company, acquired the railroad.
- 2007
Passenger traffic reaches a reported peak
[1]Passenger volume reached 25,907 riders.
- 2004
Freight traffic reaches a reported peak
[1]The railroad handled 401 freight carloads during the year.
- 1992
Santa Fe Southern Railway begins operations
[1]Local businesspeople established the short line after the former Santa Fe Railway discontinued service on the Lamy–Santa Fe branch.
Products and positioning
A heritage-oriented New Mexico short line combining preserved local rail infrastructure, occasional freight capability and experience-led tourist excursions under the Sky Railway brand.
Rail freight · 1992
Short-line freight service
Santa Fe Southern was created to preserve freight service on the former Santa Fe Railway branch between Lamy and Santa Fe. Freight traffic was an important part of the original operating model, although volumes varied greatly over time and remaining freight operations were suspended after the 2014 excursion partnership ended.
Tourist passenger rail · 2021
Sky Railway excursions
Sky Railway is the passenger-facing excursion brand associated with the Santa Fe Southern route. Its service uses the historic Lamy–Santa Fe line for scenic, themed and entertainment-oriented journeys, transforming a former branch railroad into a regional visitor attraction. Excursion operations resumed under the brand in December 2021.
Charter and event rail
Private charter trains
The railroad has offered private train hire for weddings, parties, corporate events and other special occasions. It has also operated private varnish experiences and supported occasional movie and television shoots, providing a flexible use of its equipment and short-line route beyond scheduled excursions.
Marketing campaigns
- 2021Sky Railway relaunch
New Mexico · United States
The railway was repositioned for the public as Sky Railway, emphasizing excursion travel, themed experiences and tourism following new ownership.
Outcome. Passenger excursion operations resumed in December 2021.
- 2012Breaking Bad production appearance
United States
Santa Fe Southern supported production of the Breaking Bad episode "Dead Freight," giving the railroad prominent entertainment-media exposure.
Outcome. The railroad and locomotive SFSR 07 were credited in connection with the episode.
Brand decisions
2021
Revival under the Sky Railway brandStrategyBackground
The railroad had lacked regular excursion service after the 2014 partnership ended.
Action taken
New ownership relaunched passenger excursions under the Sky Railway name.
Aftermath
Excursion operations resumed in December 2021, restoring the railroad's public tourism role.
2014
Joint excursion operation with Las Vegas Railway ExpressStrategyBackground
After a year without train operations, Santa Fe Southern needed capital and operational support to return its line to service.
Action taken
Las Vegas Railway Express agreed to fund track restoration while Santa Fe Southern operated summer excursion trains.
Aftermath
Despite a reportedly successful summer, the partnership ended in September; future passenger trips were cancelled and refunded, and freight operations were suspended.
2013
Workforce reduction and operational shutdownStrategyBackground
The railroad faced sharply reduced freight and passenger volumes after the 2012 season.
Action taken
Management laid off all full-time staff and many seasonal employees, and the railroad did not operate trains during 2013.
Aftermath
The shutdown was followed by an attempted partnership with Las Vegas Railway Express to restore the line and restart excursion service.
2010
STI-Global acquisitionM&ABackground
Santa Fe Southern was operating a small freight and tourist railroad on the former Lamy–Santa Fe branch.
Action taken
STI-Global, Ltd. acquired the railroad and proposed using it to test safety systems.
Aftermath
The acquisition changed the railroad's ownership, although the available material does not provide details of its long-term operational effect.
Recent events
- 2021
Santa Fe Southern resumes excursions as Sky Railway[1]
Product launch
Following a change in ownership that included George R. R. Martin and Bill Banowsky, excursion operations resumed under the Sky Railway brand in December.
- 2014
Las Vegas Railway Express partners on excursion service[1]
M&A
Las Vegas Railway Express announced an agreement to provide capital for line restoration and jointly operate Santa Fe Southern excursion trains during the summer.
- 2014
Las Vegas Railway Express ends excursion partnership[1]
Other
The partner terminated the operating arrangement effective September 29. Future excursion bookings were cancelled and refunded, while remaining freight operations were suspended.
- 2013
Railroad suspends operations after staff layoffs[1]
Other
After the 2012 operating season, the board chairman announced layoffs affecting all full-time employees and many seasonal workers. No trains operated during 2013.
- 2012
Santa Fe Southern Railway appears in Breaking Bad[1]
Campaign · Other
The railroad and one of its locomotives were featured in the Breaking Bad episode "Dead Freight," which depicted a fictional train robbery.
- 2011
Santa Fe Southern leaves Santa Fe depot headquarters[1]
Other
The railroad was evicted from its depot headquarters to make way for a planned visitors' centre intended to serve New Mexico Rail Runner passengers.
- 2010
STI-Global acquires Santa Fe Southern Railway[1]
M&A
Australian-based STI-Global, Ltd. purchased the railroad and said the line would support testing of the company's safety systems.
Sources2 sources
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