DENVER — The state of Colorado will not have to pay a fee to Union Pacific to use its track for a Denver-Craig passenger train, while the railroad will no longer pay the state annually for use of the 6.2-mile Moffat Tunnel under a new 25-year agreement announced today (Monday, Dec. 23, 2024).
The agreement announced by Gov. Jared Polis comes as a result of negotiations between Colorado and UP on the railroad’s lease for the state-owned tunnel. The current lease, a 99-year agreement dating from 1926, includes a $12,000 annual fee. That deal was set to expire in January, but will be extended four months while the new deal is finalized.
“This is a big step forward in making Mountain Rail from Denver to Craig a reality,” Polis said in a press release. “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. This historic agreement is an important step to protect continuous freight operations and finally deliver on the promise of passenger rail to Coloradans, and I thank Union Pacific for its partnership.”
The Vail Daily reports the agreement allows up to three passenger round trips a day, not including Amtrak’s existing California Zephyr and seasonal Winter Park Express trains. The state could negotiate additional trips outside the terms of the tunnel agreement.
“We’re excited about the opportunity this renewed lease gives us to continue to serve our customers,” Union Pacific President Beth Whited said, “while strengthening our partnership with the State of Colorado. It’s a great example of what is possible when we work together.”
Passenger service on the Denver-Craig route ended with the discontinuance of the Denver & Rio Grande Western’s Yampa Valley in 1968. The state launched a study of the route last year [see “Colorado to fund study …,” Trains News Wire, Oct. 24, 2023]; a service development plan is due to be completed in January. The state has also passed a law to help fund that operation and other passenger rail projects through rental-car fees [see “Colorado governor signs bill …,” News Wire, May 17, 2024].
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