Key Takeaway: Freight rail is the foundation for the nation’s construction industry, moving steel, cement, lumber and much more. Railroads’ lumber transport has become a bellwether for the American dream as rail carloads strongly correlate to housing starts. And with the paper and pulp industry being one of the largest industries in the world, railroads are important to moving a commodity that protects our food and enables e-commerce.
U.S. freight railroads play a critical role in the nation’s ability to build. For residential and commercial construction, railroads transport a variety of building materials, including steel, stone, non‐metallic minerals, wood products and plastics. At the end of the residential construction process, a newly built dwelling is filled with durable consumer goods, such as household appliances — carried by rail. Railroads are also essential to one of the largest industries in the world, pulp and paper. Pulp and paper are most commonly processed to make everything from paper and food packaging to cardboard, bandages and LCD screens.
Raw materials like cement and steel are gathered and processed into building materials.
Trains help move these building materials to distributors who then supply various construction sites across the nation.
Construction site developers build hospitals, schools, homes, skyscrapers, manufacturing plants and more.
The movement of forest products, particularly lumber, serves as a key economic indicator for the nation. Freight rail activities in this sector closely align with the demand for these products, exhibiting a strong correlation with housing starts — an important economic gauge.
Freight railroads play a vital role in transporting lumber and wood products essential for construction, including milled lumber and construction panels like wood particle used in furniture production. These materials are fundamental for constructing various elements such as walls, doors, floors, and roofs in America.
Lumber is typically transported using three types of railcars—centerbeams, boxcars, and bulkhead flatcars. Centerbeams, preferred for their dual-side loading capability, can swiftly return to service. A standard 73′ centerbeam flatcar can carry over 200,000 lbs., equivalent to framing lumber for approximately six homes.
Railroads also transport other wood-related materials like millwork, veneer, and plywood, serving manufacturers of paneling, furniture, trim, molding, flooring, and building material distributors.
Key Data Point: In 2021, railroads hauled more than 560,000 carloads of steel and other primary metal products, 700,000 carloads of iron ore and approximately 250,000 carloads of scrap metal for producing new steel. (Download Infographic)
Railroads haul the iron ore, steel scrap and coke that are used to make steel, which is used to manufacture products like automobiles and appliances. Railroads also move steel slabs, concrete reinforcing bars and various kinds of pipe for use in construction projects. Steel slabs produced at the steel mill are transported to fabricators in specialized flat cars (shown in the image above). A loaded flat car is extremely heavy — carrying approximately 110 tons of steel per car. To maximize efficiency, railroads have engineered a lighter-weight flat car that can carry one additional steel slab per carload.
Key Data Point: Analysts estimate that about 80% of U.S. crushed stone is used as a construction material, mainly for road construction, while 43% of U.S. sand and gravel is used for concrete aggregates.
Construction aggregates, such as crushed stone, sand, and gravel, are essential for various projects like roads, runways, buildings, and sewer systems. With these materials present in almost every state, long-distance shipments are unnecessary. Using railcars, which can carry as much aggregate as four truck-trailers, freight rail offers an eco-friendly transportation method. Raw materials, like crushed stone, limestone, sand, gravel, and gypsum, are efficiently transported from quarries to cement and concrete plants. These materials, essential for building foundations, wallboard production, and ceramic tiles, reach construction distribution centers and sites.
To ensure efficient and cost-effective transportation, railroads use gondolas for aggregate movement, minimizing train reconfigurations. While rail transport for aggregates is typically within 300 miles, the commodity’s importance ensures continued railroad involvement. Covered hopper cars are preferred for hauling dry cement due to their sturdiness and ease of use. These cars, with outlets for easy unloading, have been a reliable choice for cement transport. Loading and unloading efficiency leads to quicker equipment turnover, reducing costs for both railroads and shippers.
Key Data Point: The paper and pulp industry is one of the largest industries in the world, and the U.S. produces more than 70 million tons of paper and board every year. In a typical year, railroads move about 700,000 carloads of pulp and paper products.
From Georgia’s southeast to Oregon’s northwest, freight rail efficiently transports American paper and pulp products crucial for food safety, security, and e-commerce. Trains, with their ideal capacity for size, weight, and diversity, serve as the optimal solution for market delivery. Pulp, derived from wood, cotton, and grasses, is processed to create paper, food packaging, cardboard, and plant-based items like sponges and bandages. Surprisingly, pulp also plays a role in producing LCD screens and automobile tires.
Freight railroads have evolved to address shifting American needs — replacing newsprint for newspapers with cardboard for e-commerce shipping. Paper-based packaging and boxes, known for being sturdy, lightweight, and customizable, play a crucial role in supporting the growing e-commerce market. They offer a versatile and cost-effective solution for transporting, protecting, and preserving a range of consumer goods. Forest products, particularly pulp and paper, are commonly transported in versatile boxcars. These enclosed railcars provide protection from weather, safeguarding loads from damage and temperature extremes during transit through features like insulation, refrigeration, and cushioning.
