Mt. Rainier Railroad Moves to Buy Tacoma’s Mountain Division

Published: February 23, 2026

EATONVILLE–MORTON, Wash. — A long-idled rail corridor that threads through the foothills of Mount Rainier could soon have a new owner and operator. Mt. Rainier Railroad LLC (MRSR) filed with the Surface Transportation Board (STB) in mid-December, 2025 seeking authority to acquire and operate roughly 33.59 miles of track between Eatonville and Morton, Washington, and to replace Tacoma Rail as the line’s designated common-carrier service provider.

The STB notice, published December 19, outlines MRSR’s request to purchase the route from the City of Tacoma’s Department of Public Works, doing business as Tacoma Rail Mountain Division (TRMW), and—upon closing—assume exclusive common-carrier responsibilities previously held by the City of Tacoma’s Department of Public Utilities, doing business as Tacoma Rail.

Tacoma Rail SD40-3 is on its way to Eatonville, Washington on June 23, 2011. Drew Jacksich photo.

According to the STB filing, the transaction covers the Mountain Division segment extending from milepost 32.0M at Eatonville to milepost 65.59M at Morton (about 34 route-miles). MRSR told regulators it has reached an agreement with TRMW to purchase the line and, after consummation, operate it as the corridor’s sole common carrier—formally ending Tacoma Rail’s common-carrier status on this segment.

In its verified notice, MRSR described itself as a noncarrier entity and stated it is a subsidiary holding of the Western Forest Industries Museum, which controls the Mt. Rainier Scenic Railroad, best known for tourist excursion service in the region.

MRSR also certified that its projected annual revenues would remain under $5 million, meaning the acquisition would not elevate the company into Class I or Class II railroad status. It further stated it would not be contractually restricted from interchanging with other rail carriers—language commonly used to assure regulators that the new operator can connect freight to the broader rail network if traffic develops.

One of the most striking elements in the filing is the corridor’s current condition as a dormant common-carrier route. MRSR informed the STB that the line is inactive and that it believes there are no shippers to notify, adding that the route has not been used by a shipper for more than a year.

That status helps explain why Tacoma has been working through complicated questions about what, exactly, the Mountain Division should be in the future—freight railroad, tourist corridor, trail, or some mix.

The STB notice set out a clear regulatory calendar. The earliest the transaction could be consummated is January 4, 2026, which corresponds to the effective date of the exemption—30 days after the verified notice was filed. Parties seeking to pause the exemption were directed to file petitions for stay by December 26, 2025. While petitions to revoke an exemption can be filed at any time, the STB emphasized that such a petition does not automatically stop the exemption from taking effect—an important procedural point in rail transactions governed by streamlined “notice of exemption” rules.

About The Mountain Division

Tacoma’s Mountain Division story is a decades-long mix of public ownership, shifting economic expectations, and the reality that rural rail infrastructure is expensive to maintain. The City of Tacoma notes it assembled the corridor through acquisitions that included a 1990 donation of 54.5 miles of track from Weyerhaeuser along its former Chehalis Western Railroad (which was all former Milwaukee Road trackage), and a 1995 purchase of another 77 miles. The reporting mark TRMW was assigned to the corridor, with Public Works overseeing the asset and Tacoma Public Utilities’ rail operation handling day-to-day operations and maintenance.

Tacoma says the corridor was originally pursued for tourism-focused economic development, including a vision sometimes framed as a “Train to the Mountain” concept. But the city also acknowledges that the cost to maintain and realize that vision proved substantial, and that past passenger-excursion partnerships struggled to generate sustainable ridership.

In parallel, Tacoma attempted to bolster the economics with freight service—particularly around Frederickson—yet the city concluded that traffic levels did not cover ongoing maintenance and operating costs without subsidy. Tacoma also pointed to the scale of capital needs on portions of the system, citing a $40 million investment requirement over a ten-year period for certain segments between Tacoma and Frederickson.

A 2023 Railway Age report provides additional context, describing Tacoma Rail’s Mountain Division as a costly burden in its later years and detailing how the city sold significant portions of the Mountain Division to Rainier Rail LLC (reporting mark RNIR) as part of a broader divestiture.

What could change if the sale is approved

If approved and consummated, MRSR would take on the legal obligation to provide common-carrier service over the Eatonville–Morton segment—meaning, at least on paper, the railroad must provide service upon reasonable request, subject to rail regulation.

In its reporting, Progressive Railroading noted that MRSR officials have discussed future freight service alongside the potential to expand excursion operations, positioning the acquisition as a pathway to bring activity back to a corridor that has been quiet.

Whether freight returns will depend on the fundamentals: customer locations, transload opportunities, interchange logistics, and the cost to restore/maintain track, bridges, and grade crossings to the standards required for reliable service. But in the near term, the filing signals something concrete: a defined entity is willing to assume the responsibilities—and risks—of owning and operating this specific stretch. To learn more about the Mt. Rainier Scenic Railroad please click here to visit their website.