DENVER — The state of Colorado and Union Pacific on Monday signed an agreement extending the railroad’s lease of Moffat Tunnel for 25 years, a deal that also allows for expanded passenger service on the route through the Rockies as soon as 2026.
The 99-year lease on the state-owned tunnel signed was scheduled to expire in January of this year, but the state and UP signed a short-term extension while the new agreement was finalized [see “Colorado, Union Pacific reach deal …,” Trains News Wire, Dec. 23, 2024].
Under the new agreement, the railroad — which previously paid $12,000 a year for use of the tunnel — will no longer pay for access. It will, however, allow for up to three daily passenger train trips a day between Denver and mountain communities, excluding the current California Zephyr and seasonal Winter Park Express trains. That opens the door for the proposed Mountain Rail service between Denver and Craig, Colo. [see “Colorado to fund study …,” News Wire, Oct. 24, 2023].
Colorado Gov. Jared Polis and Union Pacific President Beth Whited took part in the signing, which addresses in separate agreements the tunnel lease, the passenger rail agreement, and sale of land at the former Burnham Yard site for transit and transit-oriented development use.
“Moffat Tunnel represents an important part of Colorado’s history, as well as a bright part of our future,” Polis said in a press release. “ With this work, we are showing the country a new model for pursuing passenger rail through collaboration with the railroad. I am thrilled with the three new agreements and look forward to seeing the positive benefits to our state.” The release says passenger service between Denver and Granby will begin by 2026, with future expansion to Craig and Hayden. That expansion will depend on capital improvements specified in the agreement, as well as selection of a contract operator.
Whited, in comments reported by the site Colorado Newsline, said UP “ is proud of the hard work and spirit of collaboration that went into this agreement with the State of Colorado. 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.”
Said Sally Chafee, Colorado Department of Transportation chief of staff: “More passenger rail trips between the Front Range and mountain communities in Winter Park, Granby, and beyond will offer an option in addition to the drive over Berthoud Pass. The purchase of the Burnham lead line will also improve local mobility surrounding Lincoln Park in Denver, ensuring this historic neighborhood can continue to offer residents safe access to all the surrounding amenities.”
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