The American Recovery and Reinvestment Act (ARRA) has had little impact on domestic rail producers and any uptick in orders might not be felt for as much as 18 months, or at least until the first and second quarters of next year, as most of the allocated funds have yet to be spent.

The size of the market isn't substantial, with the domestic industry—ArcelorMittal USA Inc.'s Steelton, Pa., facility, Evraz Inc. NA's Rocky Mountain Steel operation and Steel Dynamics Inc.'s Structural and Rail division in Columbia City, Ind.—shipping 941,000 tons of standard rail in 2008 and 457,825 tons in the first half of this year, according to American Iron and Steel Institute data.

ArcelorMittal in late August was awarded its first of two orders for steel funded under ARRA, according to a company spokesman. The first calls for 1,560 tons of rail valued at $2.6 million, with the second requiring 620 tons of rail valued at $1.1 million, ordered by the Southeastern Pennsylvania Transportation Authority (SEPTA).

The producer strongly supports the federal economic stimulus package and is looking forward to "continuing to support the expansion of high-speed rail projects in the U.S. With a rich history of more than 140 years—we have stood on this site since 1867—Steelton provided the rail used to build some of this country's first railroads and helped to build the infrastructure that is now being updated and repaired,"...