New Moffat Tunnel deal moves daily passenger train to mountain communities a step closer to reality

Colorado state officials and the Union Pacific Railroad reached a tentative agreement on the future of the 100-year-old Moffat Tunnel — and, in the process, set the stage to expand passenger rail service in the mountains between Denver and Craig, officials announced Monday.

Barring any major hiccups between now and the formal signing in May, the state will extend the 99-year lease allowing Union Pacific to use the tunnel for another 25 years. In exchange, the state will receive expanded access to Union Pacific’s railroad tracks for passenger trains from Denver to northern Colorado over that time frame.

The final technical details still need to be finalized, but the state’s key negotiators were confident Monday that this agreement would set the stage for final approval.

If all proceeds smoothly, regular daily passenger train service between Denver and Grand County — a portion of the full corridor — could begin in time for the start of the ski season in late 2026. For several years, Amtrak has run the revived Winter Park Express ski train along that route seasonally, but only around weekends — including from Thursdays through Mondays this season.

The mountain rail expansion could eventually lead to up to three roundtrip services per day between Denver and Craig, with several stops, including Winter Park and Steamboat Springs, along the way.

“This is a big step forward in making Mountain Rail from Denver to Craig a reality,” Gov. Jared Polis said in a statement. “Passenger Rail on this corridor will relieve traffic to one of Colorado’s iconic mountain communities and provide safe, reliable, affordable transportation options for tourists and skiers as well as workers traveling along the corridor.”

The build-out of passenger rail would happen in phases and likely take decades to complete. This agreement helps set that in motion. The state legislature kickstarted rail expansion efforts this spring, with hundreds of millions of dollars from the federal government.

The deal announced Monday will also settle the use of the Moffat Tunnel, with the expiration of the 99-year lease just weeks away. The state owns the tunnel and leases the tracks that run through it to Union Pacific, which other train operators can then pay to use.

The 6.2-mile Moffat Tunnel is the only rail tunnel in the state that spans the Continental Divide. It connects Gilpin and Grand counties west of Denver. At more than 9,200 feet in elevation, it is the highest point in Amtrak’s national rail network, according to Sky-Hi News.

The tunnel serves as a crucial rail connection between the Front Range and the Western Slope, as well as the grander American West.

“The historic Moffat Tunnel has been part of the joint Union Pacific and Colorado rail network for nearly 100 years, connecting local, regional and national customers in Colorado to each other and the world,” Union Pacific President Beth Whited said in a statement. “We’re excited about the opportunity this renewed lease gives us to continue to serve our customers, while strengthening our partnership with the State of Colorado. It’s a great example of what is possible when we work together.”

The terms of both agreements also cover items such as who’s responsible for maintenance, upkeep and infrastructure upgrades. Union Pacific is generally on the hook for the tunnel, while the state would pay a proportionate share of operating and maintenance costs for the UP-owned tracks along the mountain passenger rail corridor, in addition to shouldering the costs of any needed capital improvements.

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