 On September 1, 2007, the operation was transferred to the Texas State Railroad Authority and leased for operation by American Heritage Railway, which also operates the Durango & Silverton Narrow Gauge Railroad in Colorado and the Great Smoky Mountains Railroad in North Carolina.In August 2012 American Heritage Railways sold the Texas State Railroad to Iowa Pacific Holdings.In addition to continuing passenger operations, Iowa Pacific Holdings opened the track to the main line in Palestine on November 1, 2012 to begin offering freight services.