Denver, CO Railyards

Overview of the Intermodal Railyards

The Denver rail terminal complex includes BNSF Railway’s 31st Street Yard, Union Pacific’s North Yard, and the Burnham Yard redevelopment site, serving as primary freight hubs for intermodal, automotive, agricultural, and energy commodities with direct connections to national rail corridors.

Denver’s intermodal facilities, notably BNSF’s Denver Intermodal Facility and Union Pacific’s Denver Intermodal Terminal, offer seamless transfer between rail and truck, supporting containerized cargo, bulk shipments, and automotive logistics for efficient regional distribution.

Market Size and Economic Impact

Denver’s rail infrastructure moves over 40 million tons of freight per year, ranking among the top inland rail hubs in the western U.S. The rail sector supports more than 12,000 jobs and generates $2.8 billion in annual economic impact for the Denver metropolitan area.

Competitive Landscape

• BNSF Railway: Operates the 31st Street Yard and Denver Intermodal Facility, handling intermodal, bulk, and automotive traffic
• Union Pacific: Manages North Yard and Denver Intermodal Terminal, with direct links to Midwest, West Coast, and Texas markets
• Regional Railroads: Short lines like Denver Rock Island Railroad provide last-mile service to industrial parks and distribution centers

Opportunities

• E-commerce Expansion: Growth in online retail drives demand for intermodal and last-mile rail-truck logistics in the Denver area
• Energy Sector Growth: Increased crude oil and renewable energy shipments boost rail volumes and terminal throughput
• Front Range Rail: Planned passenger rail expansion to Fort Collins and Pueblo will enhance connectivity and spur infrastructure investment

Challenges

• Urban Congestion: Rail operations face constraints from Denver’s rapid population growth and limited yard expansion space
• Infrastructure Age: Legacy yards and tracks require modernization to meet current freight and safety standards
• Service Reliability: Weather disruptions and maintenance backlogs can impact on-time performance and customer satisfaction

Trade and Logistics Trends

• Intermodal Surge: Containerized freight volumes continue to rise, driven by e-commerce and regional distribution
• Agricultural Exports: Wheat, corn, and beef shipments remain strong, supporting Colorado’s rural economy
• Energy Logistics: Crude oil, ethanol, and wind turbine components are key growth commodities for Denver rail

Future Outlook

• Terminal Modernization: BNSF and Union Pacific plan yard upgrades and expanded intermodal capacity through 2028
• Passenger Rail Expansion: Front Range Passenger Rail District targets new service to Fort Collins and Pueblo by 2029
• Green Initiatives: Rail operators invest in cleaner locomotives and yard electrification to reduce emissions

Recommendations

• Yard Redevelopment: Accelerate Burnham Yard transformation for expanded intermodal and industrial rail capacity
• Technology Integration: Deploy advanced yard management and predictive maintenance systems for efficiency gains
• Workforce Development: Partner with local colleges to train skilled rail workers and address labor shortages