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5/6/2025
Colorado Gov. Jared Polis and Union Pacific Railroad President Beth Whited yesterday celebrated the signing of a historic lease agreement for Colorado's Moffat Tunnel, replacing the original lease signed in 1926.
The new agreement follows the memorandum of understanding signed Nov. 1, 2024, and includes a 25-year lease, a 25-year access agreement for the future Mountain Passenger Rail and finalizes the purchase and sale of the Burnham lead line that will unlock transit-oriented development (TOD) potential for the Burnham Yard property. The public-private partnership ensures continued freight operations through the Moffat Tunnel but also passenger-rail access from Denver through the Moffat Tunnel to Winter Park, Granby, Steamboat Springs and Craig for the future Mountain Passenger Rail Service, state officials said in a press release issued by Polis' office.
The three agreements demonstrate a new model of collaboration that can support the state’s needs for moving goods and commerce while providing Coloradans more transportation options, they said.
The pact begins a new period of partnership between the state and UP that will expand passenger-rail service into the Rocky Mountains, continue freight movement through the Continental Divide and unlock access to Burnham Yard, a former rail yard and now a state property with "unparalleled" TOD potential, Polis said.
"With this work, we are showing the country a new model for pursuing passenger rail through collaboration with the railroad. I am thrilled with the three new agreements and look forward to seeing the positive benefits to our state,” said Polis.
The 100-year-old, 6.2-mile-long tunnel cuts through the Continental Divide at 9,239 feet above sea level. Created to provide an important East-to-West connection from Denver to the West Coast for commerce, the Moffat Tunnel helped Denver become a center of commerce and growth in the Rockies.
The tunnel was created to ensure Denver would remain that commerce hub after UP, the first transcontinental railroad, bypassed Colorado and routed through Wyoming instead. For 99 years UP or its predecessors have held a lease that expired May 1, 2025, state officials said.
“Union Pacific is proud of the hard work and spirit of collaboration that went into this agreement with the state of Colorado. We came together as true partners and the result is an agreement that benefits the citizens of Colorado and the businesses and people who rely upon Union Pacific to deliver the goods and material vital to today’s economy,” said Whited.