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].
A $12,000/year fee in 1926 is $211,000/year in 2024 dollars. That is according to the government’s inflation calculator.
That will be a really scenic train ride. I’m looking forward to it.
So to put it another way, in exchange for giving up $12k/yr, the state can run up to three round trips per day between Denver and Craig. I don’t know how much the usual “track access fee” costs, but that sounds like a pretty good deal. And since I believe UP has been routing most of its traffic over Sherman Pass instead of the Moffat Route, capacity shouldn’t be an issue for at least the first round trip or two. Now whether there’s demand for three round trips is another matter.
They should charge hikers and skiers a fee also
Agreed. Anyone packing skies or carrying hiking gear has to pay an environmental impact fee in their ticket. What is good for the goose is good for the gander.
Is there toll for the I-70 Eisenhower tunnel? Not that I know of.