Constructed in 1887 by the Colorado Midland Railroad and named for Midland officer James John Hagerman, it was replaced by the Busk-Ivanhoe Tunnel in 1893.

There was a 1,084 ft (330 m) wooden trestle built on the eastern approach to the tunnel.

[1] The railroad grade on the east side of the Hagerman Tunnel is now open to the public for hiking or biking in the summer.

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