Colorado Extends Moffat Tunnel Lease for 25 Years to Expand Passenger Rail

Colorado officials finalized a 25-year lease for the Moffat Tunnel, securing essential rail connections and enabling expanded passenger service while preserving critical freight operations. This was reported by the railway transport news portal Railway Supply.

Moffat Tunnel Lease Renewed for Passenger Rail Growth

Colorado leaders announced a landmark agreement to extend the Moffat Tunnel lease for 25 years, supporting passenger rail expansion and maintaining freight access. The new terms take effect on May 1, ensuring uninterrupted transportation.

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Union Pacific previously paid $12,000 per year under a 99-year lease set to expire on January 6. The 6.2-mile tunnel, situated at 9,239 feet above sea level, is the highest railroad tunnel in the United States. It serves as a crucial link through the Continental Divide near Winter Park.

Officials extended the 1926 lease temporarily to finalize updated terms, which strengthen regional transit options. Governor Jared Polis highlighted the deal’s role in advancing passenger rail service from Denver to Craig, addressing commuter and tourism needs.

Polis emphasized that this agreement improves affordable, safe transportation while reducing road congestion in mountain corridors. It also protects long-standing freight operations and sets the foundation for future passenger routes.

Economic Impact of the Moffat Tunnel Agreement

Union Pacific praised the lease renewal as a positive step, enabling stronger partnerships with Colorado and continued freight operations. President Beth Whited highlighted mutual benefits and future growth opportunities tied to the agreement.

Amtrak already operates along Union Pacific’s Colorado tracks, including the California Zephyr and Winter Park Express. The renewed lease permits up to three new round-trip passenger routes daily, enhancing transit accessibility.

Colorado lawmakers also passed measures supporting rail expansion northwest to Steamboat, Hayden, and Craig. These developments promise economic growth, improved transit options, and reduced highway congestion during peak travel seasons.

State transportation adviser John Putnam stressed that the tunnel offers reliable alternatives to congested highways like I-70, benefiting families and freight carriers alike. He called the Moffat Tunnel a cornerstone of Colorado’s infrastructure.

Environmental and Legal Challenges Surrounding the Moffat Tunnel

The Moffat Tunnel has faced environmental issues, including wastewater spills, and legal battles over proposed Utah oil trains. Ongoing litigation has delayed the Uinta Basin Railway project, designed to connect Utah oil fields with national rail lines.

Federal regulators approved the Uinta Basin Railway in 2021, but lawsuits, including cases reaching the U.S. Supreme Court, continue to block construction. Critics raise concerns about environmental impacts and long-term sustainability.

Governor Polis highlighted the lease renewal as a step toward environmental safeguards and infrastructure resilience. Officials view the agreement as essential for balancing growth, sustainability, and economic development in Colorado’s mountain communities.

Source: coloradonewsline.com

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