Colorado has taken a significant step toward expanding its passenger rail network with a newly signed 25-year lease agreement between the state and Union Pacific Railroad. This agreement ensures passenger rail access through the Moffat Tunnel, a historic rail passage through the Continental Divide, and lays the groundwork for year-round train service connecting Denver to Granby, with future plans to extend service to Craig and Steamboat Springs. 

The Moffat Tunnel, completed in 1927, has long been a vital freight corridor, facilitating commerce between Colorado and the West Coast. The new agreement replaces Union Pacific’s original 99-year lease, which expired on May 1, 2025. The partnership between Colorado and Union Pacific is considered one of the most successful public-private collaborations in the state’s history. 

Governor Jared Polis emphasized the importance of this expansion, stating that it will reduce congestion, lower pollution, and provide a cost-effective transportation alternative for Coloradans and visitors alike. 

The expansion includes several key features. Daily passenger rail service will begin next year, offering year-round service between Denver and Granby, with plans to extend to Craig and Steamboat Springs. This project is expected to reduce traffic congestion, lower emissions, and boost tourism by providing easier access to Rocky Mountain National Park and other destinations. Additionally, the agreement involves the purchase of the Burnham Lead Line, which will unlock transit-oriented development in Denver’s Burnham Yard, a historically significant rail property. 

The Colorado Department of Transportation will issue requests for proposals next month to further develop the Mountain Passenger Rail system. The expansion is expected to enhance connectivity between urban and rural communities, providing a safe and efficient alternative to highway travel. 

With this agreement, Colorado is setting a precedent for collaborative rail expansion, demonstrating how public-private partnerships can drive sustainable transportation solutions. 

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