Colorado, Union Pacific Sign 25-Year Moffat Tunnel Lease Agreement

Colorado Governor Jared Polis and Union Pacific Railroad have signed a 25-year lease agreement that extends Union Pacific’s use of the state-owned Moffat Tunnel and paves the way for expanded passenger rail service through the Rocky Mountains. The agreement grants the state access to Union Pacific tracks for up to three daily round-trip passenger trains, supporting plans for a Mountain Passenger Rail connecting Denver to Winter Park, Granby, Steamboat Springs, and Craig. In addition to ensuring continued freight movement through the tunnel, the deal finalizes the purchase of the Burnham Lead Line, unlocking development potential for Denver’s Burnham Yard. Officials from both sides emphasized that the agreement represents a new model of public-private partnership, balancing freight needs with enhanced passenger transit and economic development. The Mountain Passenger Rail service is expected to begin operations next year, offering year-round service and new transportation options for Colorado communities. Leaders highlighted the collaboration as a significant step in modernizing and expanding rail infrastructure in the state.