FREIGHT RAIL & THE CHEMICAL INDUSTRY KEY FACTS

  • Freight rail safely moves essential chemicals like fertilizers and ethanol.
  • 10 states produce ~66% of U.S. chemicals.
  • Railroads link production hubs to end users.

Freight railroads safely and efficiently transport essential chemicals, including fertilizers, plastic resins, and caustic soda. They support industries like agriculture, manufacturing, and paper production. Rail plays a key role in keeping chemical producers competitive while enhancing safety and quality of life. Most rail chemical shipments fall under STCC 28. This includes industrial chemicals, plastics, synthetic resins, and fertilizers.

Freight railroads play a crucial role in safely transporting chemicals. This includes hazardous materials (hazmat), using rigorous safety protocols, specialized tank cars, and advanced technology. With industry-leading training, strict regulations, and real-time monitoring, railroads ensure these shipments move securely. They minimize risk to communities and the environment. Thanks to continuous safety improvements, rail remains the safest means to transport hazmat across the country.

Top Chemical-producing States

The U.S. chemical industry is a cornerstone of the economy. Many production facilities are concentrated in Gulf States due to the availability of raw petroleum and natural gas. However, chemical end users are spread across the country. This requires efficient and reliable distribution networks. Freight railroads play a crucial role in meeting this need. They safely transport plastics, fertilizers, ethanol, and other essential chemicals to industries nationwide.

The top chemical-producing states—Texas, California, Louisiana, North Carolina, Illinois, Ohio, Indiana, New York, Pennsylvania, and Iowa—account for approximately 66% of total U.S. chemical production. Railroads connect these production hubs to end users. They deliver fertilizers to Midwest farmers, plastic resins to automotive manufacturers, and caustic soda to pulp and paper producers. By ensuring cost-effective and dependable transportation, freight rail supports the competitiveness of chemical producers and consumers both domestically and globally.

Ethanol

Ethanol, a renewable fuel derived from corn and plant materials, is a vital commodity for railroads, especially after the 2006 ban on MTBE, a gasoline additive. Railroads transport 60–70% of ethanol shipments. Rural production facilities rely heavily on rail infrastructure. Every U.S. Class I railroad plays a role, with 15–20% of ethanol shipments originating on short line and regional railroads. Ethanol supports energy independence and aligns with renewable fuel mandates, making railroads integral to its supply chain.

Fertilizers

Fertilizers are a key rail-transported commodity. They support agriculture and global markets. Railroads move large volumes of anhydrous ammonia, potassium compounds, urea, and raw materials like phosphate rock and sulfur. One rail tank car of anhydrous ammonia replaces four tanker trucks. It fertilizes 770 acres of corn, demonstrating rail’s efficiency. Freight rail connects fertilizer producers with U.S. farmers. It also facilitates exports to Canada, Mexico, and beyond. This drives agricultural productivity and sustains global food supply chains.