Passenger service along the former Denver & Rio Grande Western is expected to grow after the State of Colorado and Union Pacific signed a new 25-year lease for the 6.2-mile Moffat Tunnel, which was opened in 1928 and is owned by the state.

The 25-year lease establishes Colorado’s ability to operate three daily round-trip passenger trains over the line, in addition to existing services (Amtrak’s California Zephyr, Winter Park Express and Canyon Spirit, formerly Rocky Mountaineer). The state plans to start a daily round-trip year-round to Granby by 2026 and eventually extend service to Steamboat Springs, Craig, and Hayden. It is unclear who will operate the service. Also included in the deal was the sale of Denver’s Burnham Yard, which officials hope to transform into a transit-oriented development. 

“Moffat Tunnel represents an important part of Colorado’s history, as well as a bright part of our future,” said Gov. Jared Polis. “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.”

Demand for passenger service through Colorado has only grown in recent years. During the 2024-25 ski season, passengers booked more than 44,000 trips on the Winter Park Express compared to 17,500 the previous season, a 153 percent increase. —Justin Franz