An effort to reestablish passenger rail service between Denver and Craig took a step forward this month as the Colorado Department of Transportation unveiled service plans and requested formal support from the Craig City Council.

Paul DesRocher, director of CDOT’s Division of Transit and Rail, presented the latest progress on the Mountain Rail Project during an April 8 workshop with city leaders where he explained timelines, service expectations and what Craig’s future could look like as a key terminus.

“It still provides a great opportunity because the existing rail infrastructure is still there,” said DesRocher, referring to the city’s historic rail station along the Union Pacific line.

The proposed Craig station would sit adjacent to the old rail yard near the south end of Yampa Avenue. The location offers several critical operational advantages, including existing sidings and space for a maintenance facility.

“We are looking at Craig for an opportunity for a maintenance facility, for layover, for cleaning … so that we can get crews on board,” DesRocher said. “With a maintenance facility in this location … there’s opportunities for jobs … supporting the operations of this line.”

The Mountain Rail Project builds on the legacy of the Yampa Valley Flyer, a passenger rail line that last served the region in 1968.

“… A lot of what we have here is building on the history of that line, including a lot of the station locations, especially the one in Craig,” DesRocher said. “So, that provides a great template for us to really reinitiate and reinvigorate a historic, culturally significant line.”

Through the passage of state legislation, Colorado established two dedicated funding mechanisms to support aspects of the Mountain Rail project.

“Those two fees are actually outside of the state’s budget deficit,” DesRocher explained, noting that the deficit would likely not have a heavy impact on the funding streams.

CDOT has been working to complete a Service Development Plan which outlines service routes, station locations, infrastructure requirements and operational feasibility. That plan is scheduled for completion during the summer of 2025.

The plan’s current configuration includes three types of service: a long line from Denver to Craig, a short line to Granby and a local Yampa Valley service connecting Oak Creek to Craig, with Steamboat Springs serving as a central hub.

DesRocher explained that Craig is well-positioned within the proposal, and that it will have an opportunity to steer some aspects of the development of the station as well.

While CDOT covers many major capital improvements, like tracks and signal systems, local jurisdictions can identify and prepare for long-term station development and upkeep.

DesRocher noted that the city is “committing to exploring what the tools are.”

“Again, we’re not going to dictate specifically … the level of detail there,” he said. “It’s just that you’ve given some exploration and have an understanding about how the plan would be implemented.”

DesRocher added that the state is not imposing strict definitions on what transit-oriented development must look like.

“Ultimately, it’s the community’s decision,” he said. “The state is really not in a position to dispute that.”

Train service between Craig and Denver would not begin immediately. CDOT plans to first launch passenger service between Denver and Granby by the end of 2026. Expansion to Craig and the Yampa Valley would come in later phases after negotiations with Union Pacific are completed, and when aspects of local commitments are in place.

DesRocher also said that the train-based commute time between Craig, Hayden and Steamboat Springs would be comparable to, or faster than, driving.

DesRocher also addressed the anticipated cost-sharing conversations that would come with formation of a Regional Transportation Authority.

“I think we would engage the RTA and the members of the RTA to really think about how are we sharing in the cost,” said DesRocher. “But, it wouldn’t be a situation where … the Yampa Valley RTA would need to go out and procure its own train set, its own operator, its own maintenance facility. That’s where really there’s an opportunity to leverage the investments that would allow for a long train between Denver and Craig that would also benefit the Yampa Valley service.”

Local officials expressed support for the project while also noting the need for ongoing transparency.

“It also sounds like as long as we have an idea of where the station and the platform is going to be, it’s not specifically right where this dot is,” asked Councilor Randy Looper. “My impression from you is that this is more guidelines. The state’s not going to tell us we have to have this, this, and this but this is the guidelines of what you kind of want us to be talking about.”

DesRocher responded by saying, “That’s fair. Yes.”

As the meeting concluded, DesRocher emphasized that Craig’s early and organized planning sets it apart.

“The city is ahead of the curve,” he said. “You’re really kind of taking a lead.”

Later that evening, the Craig City Council adopted Resolution No. 4 (2025), formally supporting the placement of a Mountain Passenger Rail station within the city. The resolution endorses the proposed location identified in the state’s SDP and calls for the city to complete a rail station area plan. That planning effort will address land use, infrastructure needs and fiscal strategies to support development surrounding the future station.

The resolution also calls for alignment with the city’s master plan and outlines the potential for transit-oriented development and a regional mobility hub in the heart of Craig.

CDOT is expected to finalize its service plan this summer, with city councils across the region asked to pass resolutions of support, confirm station locations and begin preparing for the long-term infrastructure and development demands that come with renewed passenger rail service.