As a result of the oil discovered in the Permian Basin in 1927, the Texas–New Mexico Railway was incorporated on November 19, 1927. Within a year the railroad fell under the control of the Texas & Pacific Railway. Construction commenced in 1928 and the line was completed on July 20, 1930.[3] In 1989, what was then Union Pacific sold the property to RailTex, and short line service started on September 18, 1989.[3] Railtex sold to RailAmerica in February 2000, which in turn sold to Permian Basin Railways in May 2002.[3] In September 2011, Iowa Pacific Holdings, which owned Permian Basin Railways, announced a major rebuilding of the railroad, including track upgrades and new locomotives, at a cost of more than $20 million.[4][5]
In May 2015 Watco purchased the assets of the Texas – New Mexico Railroad from Iowa Pacific Holdings, and renamed the railroad the Texas & New Mexico Railway.[6]
