Group wants Surface Transportation Board to encourage sale of Tennessee Pass rail line

Written by Bill Wilson, Editor-in-Chief
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Union Pacific has declined a $10 million offer for the Tennessee Pass rail line in Colorado.
Union Pacific

If you can’t get what you want, ask the Surface Transportation Board to intervene.

KVCN LLC and Colorado Pacific Railroad are asking the Surface Transportation Board to get involved on a deal with Union Pacific for an abandoned rail line in Colorado. The group made a $10 million offer to Union Pacific for the Tennessee Pass rail line that would reopen about 360 miles of track. KVCN and Colorado Pacific purchased the 122-mile Towner Line located in Colorado’s Eastern Plains and have spent $3.5 million so it can carry freight service beginning in April. The addition of the Tennessee Pass rail line would offer an alternative to BNSF and Union Pacific lines. However, Union Pacific has declined the $10 million deal.

Union Pacific claims it is in discussions with another company to restore the abandoned line, which has been inactive since the mid-1990s. KVCN LLC and Colorado Pacific Railroad are demanding to know who is the other bidder.

The Tennessee Pass rail line is worth an estimated $8.8 million, but it will take another $238 million to restore the tracks for freight service. KVCN and Colorado Pacific claim they have the money.

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