Colorado has completed an important deal with Union Pacific Railroad that updates a 100-year-old lease concerning the Moffat Tunnel. This paves the way for enhanced mountain passenger train services and long-term freight movement across the Rocky Mountains.
Governor Jared Polis and Union Pacific President Beth Whited marked the launch of the new public-private collaboration on Monday. The initiative encompasses the following points:
– A 25-year lease for the Moffat Tunnel
– Agreement for passenger railway connectivity
– The acquisition of a cargo route that paves the way for upcoming transportation projects linking Denver with various mountain towns
Completed in 1928, the Moffat Tunnel stretches for 6.2 miles and penetrates the Continental Divide at an elevation of more than 9,200 feet above sea level. This makes it the tallest functioning railway tunnel in the nation.
The initial tunnel venture marked a significant partnership between private backers and multiple Colorado counties aimed at maintaining Denver’s competitiveness following the decision for the first transcontinental railway to pass through Wyoming instead of the state.
This agreement represents the first new rental contract for the tunnel since 1926.
“This agreement begins a new era of partnership between the State of Colorado and Union Pacific that will expand passenger rail into our beautiful Rocky Mountains, assure continued freight movement through the Continental Divide, and unlock access to the Burnham Yard,” Polis said in a statement. “Moffat Tunnel represents an important part of Colorado’s history, as well as a bright part of our future.”
The state’s 25-year access agreement allows for up to three daily round trips, totaling more than 500,000 train miles annually for the planned
Colorado Mountain Rail service
. The new line is expected to begin year-round daily service to Granby by 2026, with later expansions to additional mountain communities.
“Mountain rail service will soon run year-round from Denver Union Station to Winter Park, to Fraser, to Granby, Steamboat Springs, Craig and Hayden, a corridor renowned for its scenery and beauty,” Polis said.
Union Pacific, which held the original lease set to expire in 2025, hailed the outcome.
“Union Pacific is proud of the hard work and spirit of collaboration that went into this agreement with the State of Colorado,” Whited said. “We came together as true partners and the result is an agreement that benefits the citizens of Colorado and the businesses and people who rely upon Union Pacific to deliver the goods and material vital to today’s economy.”
As part of the deal, the state purchased the Burnham Lead, a short freight easement that unlocks access to the Burnham Yard near downtown Denver — a key site for potential transit-oriented development.
Demand for passenger rail has grown significantly in recent years. The state’s popular
Winter Park Express
— operating in collaboration with Amtrak — experienced a significant increase of 153% in ridership during the previous season, with more than 44,000 journeys reserved, according to state authorities.
Now that the new agreements have been established, Colorado authorities claim they are setting up the groundwork for upcoming stages of mountain railway transportation, all while safeguarding essential cargo transit throughout the area.
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