Industry News
Colorado took a significant step toward expanding passenger rail service to its mountain communities with a new 25-year partnership agreement signed Monday between Gov. Jared Polis and Union Pacific Railroad President Beth Whited. The deal modernizes the lease for the state-owned Moffat Tunnel, a 6.2-mile rail passage through the Continental Divide. It paves the way for up to three daily round-trip passenger train trips between Denver and mountain towns, including Winter Park, Granby, Steamboat Springs, and Craig, The Colorado Sun reports.
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The Moffat Tunnel, completed in 1928 and the highest operating railroad tunnel in the U.S., has been leased to Union Pacific and its predecessors since 1926. Under the new agreement, Union Pacific will continue freight operations but no longer pay an annual fee for tunnel access. Instead, Colorado gains rights to run three daily passenger roundtrips, totaling up to 506,000 train miles annually, marking a significant expansion from the current limited service that only reaches Winter Park.
Daily passenger service from Denver to Granby is expected to begin by late 2026, with plans to extend the route further to Steamboat Springs, Craig, and Hayden in future phases. This expansion aims to reduce congestion on Interstate 70 and provide a reliable, affordable alternative to mountain travel for tourists, commuters, and workers alike.
The Colorado Department of Transportation (CDOT) leads the Mountain Rail Program, which envisions a 230-mile corridor utilizing existing Union Pacific and regional transit tracks. The project will be implemented in phases: first, connecting Winter Park to Granby, then local service between Oak Creek and Craig, and finally, full corridor service from Denver to Craig. The timeline depends on securing a contract operator and completing necessary track improvements.
The state has invested $3 million in planning and subsidized ticket prices for the Winter Park Express this ski season, resulting in a 153% increase in ridership. Ticket prices dropped by 40%, with one-way fares as low as $19, demonstrating strong public demand for mountain rail service.
Additionally, the agreement includes purchasing the Burnham Lead Line and access to Burnham Yard in Denver, a 58-acre site poised for transit-oriented development. This acquisition will improve rail safety by enabling the closure of several railroad crossings and supporting new urban development projects.
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Gov. Polis called the agreement “a new era of partnership” that balances freight needs with expanded passenger rail access. Union Pacific President Whited praised the collaboration as a model for states seeking to enhance transportation options while supporting commerce.
The Mountain Rail Project aligns with broader efforts to reduce traffic congestion and emissions and improve safety in Colorado’s mountainous regions. It also supports economic transition in communities affected by declining coal freight traffic, offering new mobility options and potential relief for the ski industry’s workforce housing challenges.
