The Romans’ ability to control vast stretches of territory across Europe, the Middle East and North Africa was made possible by sophisticated road networks. The Silk Road, connecting China to the West more than 2,000 years ago, is responsible for many foundational elements underpinning modern society. In addition to economic growth, the Silk Road also facilitated the cultural exchange of ideas between Asia and the West, where shared knowledge and technology contributed to significant growth in many societies. Granted, rail transportation in North America may not be as impactful as the Silk Road or the Roman road network was, but it still holds a great significance to North America. It was crucial in how the United States, Canada and Mexico developed, and endures as a vital piece of our transportation infrastructure. Without the ability to move various products safely and reliably from manufacturing origin to consumption destination, our society would be unable to function as it does today.

While renewable energy continues to grow in adoption and technologies, the significant challenge of logistics remains. Since the beginning of civilization, the ability (or inability) to control supply lines has dictated the success of many, if not most, endeavors. With feedstocks typically sourced far from power generation facilities, the supply chain is a crucial element to the success of many renewable energy platforms.

In North America, rail accounts for roughly 40% of the total freight moved, with approximately 50% consisting of bulk commodities such as biomass. Filling the gap between trucking and barge, rail provides a flexible option for shipping that is more fuel efficient than trucking and less constrained than barge. While seen as advantageous for long-haul moves, rail also makes sense in areas with very dense road traffic, such as ports or large urban areas.

Biomass by Rail
Globally, renewable energy use and technologies continue to grow, with more than 90% of renewable heat coming from biomass. The U.S. rail network helps to enable production, distribution and export of biomass products. Compared with trucking, rail offers superior fuel efficiency, higher payload capacity, and lower emissions per ton-mile. This is increasingly important, as more attention is directed toward the carbon performance of the full renewable fuels supply chain.

Pelletized biomass products in the U.S. most commonly move in covered hopper railcars, due to the need to protect the pellets from moisture. While the covered hopper railcar itself is well established in rail transportation, National Steel Car continues to lead in design innovation. Our unique covered hopper railcars and new suspension system are examples of NSC’s dedication to advancements in engineering and manufacturing.

Innovating Rail Cars
NSC Innovation and Commitment to Quality: NSC’s car design and engineering focuses on innovation and equips railcars with patented features and proven technologies to improve performance for specific markets and commodities. For the biomass pellet market, NSC’s 5808-cubic-foot covered hopper railcar maximizes carrying capacity by achievement of a lighter weight railcar. It is 2,000 to 4,000 pounds lighter than comparable railcars, allowing for one to two tons of additional carrying capacity.

In the push for continuous improvement and advancements, NSC’s Q4 Suspension System holds more than 50 U.S. and Canadian patents. In addition to lowered maintenance costs, greater stability and better protection for cargo through improved ride quality, the Q4 Suspension provides fuel savings in support of reducing carbon emissions.

NSC is committed to quality and the creation of value for our customers. NSC is ISO 9001:2015 certified, with a team of quality assurance professionals working to ensure requirements and customer needs are consistently met.

Railcar Manufacturing Outlook
Interest rates, tariff discussions and unrest have contributed to continued uncertainty for many markets and companies, which has reduced demand in the railcar manufacturing industry. The long-term outlook for manufacturers is more positive, as many fleets are aging past usability. The covered hopper railcar, which represents approximately 35% of the North American railcar fleet, is expected to see manufacturing increases over the next couple of years. The average age of this fleet is 20 years, with a relatively low number of these railcars in storage.

National Steel Car was founded in 1912 and located in Hamilton, Ontario. We have been engineering and manufacturing quality railcars for more than 100 years. The plant is North America’s largest single-site railcar manufacturing facility, featuring five production lines, three finishing lines, and an annual capacity of 16,000 cars. With focus on excellence and quality, the team at National Steel Car is ready to support the transportation needs of the biomass industry now and into the future.

Author: Brian Smalley
Executive Vice President
Marketing & Sales
National Steel Car N.A. Inc.

Printed in Issue 1, 2026 of Pellet Mill Magazine

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