Union Pacific to source most rail from U.S. manufacturer

The Union Pacific steel rail contract is a seven-year agreement with Rocky Mountain Steel Mills. It covers domestic steel rail production. Also, it allows UP to source the majority of its rail from a U.S. manufacturer. This is reported by the railway transport news portal Railway Supply.

Union Pacific steel rail contract details

UP made the announcement in a press release from Union Pacific. RMSM is based in Pueblo, Colorado. It is the only dedicated rail production facility in the United States. UP also described it as one of North America’s largest steel product producers. That position adds context to UP’s domestic sourcing plan. Also, UP said it has used RMSM rails since the early 1890s. Separately, Railway Supply notes that the deal ends pending legal disputes between the companies.

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New long-rail mill in Pueblo

RMSM plans to bring a new long-rail mill in Pueblo into operation later this year. In addition, the facility will produce 328-foot rail lengths. Meanwhile, Progressive Railroading reports that longer rail requires 80% fewer welds than standard 80-foot rails. That improves track safety and reliability.

Doug Matthews is CEO of Orion Steel, which acquired RMSM in August 2025. He said: «This mill is an essential part of America’s steel transportation infrastructure and its continued existence shows that our nation offers railroads large and small the very best product».

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