Author: Batrak Oleksandr — Editor-in-Chief at Railway Supply

The Union Pacific rail supply deal covers most of the railroad’s rail purchases. The contract runs for seven years with Rocky Mountain Steel Mills. It also secures domestically produced steel rail from the company’s Pueblo, Colorado base. This is reported by the railway transport news portal Railway Supply.

Union Pacific to source most rail from U.S. manufacturer
Photo: Union Pacific Railroad, Union Pacific to source most rail from U.S. manufacturer

Union Pacific rail supply deal and legal disputes

As Railway Supply reported, the contract also ends pending legal disputes between the companies. Union Pacific is withdrawing a lawsuit it had previously filed in Nebraska. Meanwhile, Rocky Mountain Steel operates under new ownership as part of Orion Steel.

Also, the agreement coincides with plans for a new long rail mill in Pueblo. Rocky Mountain Steel plans to commission it this year.

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Pueblo mill investment and longer rails

According to Union Pacific, the company plans to commission a long rail mill this year. The new mill is in Pueblo. The facility involves an investment of more than EUR 930m, or over USD 1bn.

The facility is designed to produce 100-metre rail sections. In addition, the company says that would cut welds by about 80% during track installation. At the same time, standard rail lengths are 80-foot, or 24-metre, lengths.

The new production line will be powered by a dedicated 1,800-acre solar farm. The company says it will be the United States’ only dedicated steel rail mill. It also says it will be one of the largest rail producers in North America.

Historic supply relationship

Still, Union Pacific has sourced rail from the Pueblo mill since the early 1890s. The companies also worked together during network expansion in the western United States. During the First World War, Union Pacific transported raw materials and finished steel products.

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