It is sad to hear about the lack of maintenance on the branch but, in many cases this is a precursor to a new life for the line. If the line does in fact have 25-30 car trains daily there is no way it will be torn out. The state cant afford to let that happen. It affects too many jobs outside of the Railroad. I dont know about Colorado but, many states have rail freight assistance programs for new operators. These programs are designed to strengthen the new lines infrastructure and help secure its future. I personally have lived through 4 major line sales on the shortline end and in all cases it was a success story. The shortline may not have the pockets to afford brand new EMD's but, there is plenty of CHEAP decent used power out there right now (much is less than the price of a new car!) and shortlines can usually provide a more personalized service for the local customer. Im not familiar with the UP's line sale program but, if they are sharp they will recognize the shortline's ability to better market the line and increase traffic providing UP with the more profitable line haul business. Shortlines in a case like this should be looked at as one large customer that picks up and delivers its freight to one single location or interchange rather than just another little railroad.
I only wish I lived a little closer right now, would love the opportunity to go through a fifth linesale, especially this line!