U.S. Department of 

Agriculture 

Agricultural Marketing 

Service 

Transportation and 

Marketing Programs 

Transportation Services 

Branch 

September 2007 

CONTENTS

 

Introduction 1

 

Ethanol Supply 

and Demand 

Overview 4

Ethanol 

Transportation 

Outlook: 

Current and 

Projected 6

 

Infrastructure 

Issues 13

Government 

Biofuel 

Activities 17

Appendix I 

Scenario 

Tables 18

Appendix II 

Illustrations 22

Resources 

and Links 26

Contact Us 29 

The Ethanol Transportation Backgrounder is an overview of transportation issues facing a rapidly expanding 

U.S. ethanol industry in the context of the U.S. corn market—currently the main source of ethanol production 

in the United States. The aim of the report is to present a frame of reference as the ethanol industry continues 

to grow and additional transportation benchmarks and indicators develop by providing analysis of 

transportation requirements for corn-based ethanol and its impact on grain transportation. 

SUMMARY

For the first 6 months of 2007, U.S. ethanol production totaled nearly 3 billion gallons—32 percent 

higher than the same period last year. As of August 29, there were 128 ethanol plants with annual 

production capacity totaling 6.78 billion gallons, and an additional 85 plants were under construction. U.S. 

ethanol production capacity is expanding rapidly and is currently expected to exceed 13 billion gallons per 

year by early 2009, if not sooner. 

Ethanol demand has increased corn prices and led to expanded corn production, which is affecting 

grain transportation as corn use shifts from exports and feed use to ethanol production. 

Most ethanol is currently produced in the Nation’s heartland, but 80 percent of the U.S. population (and 

therefore implied ethanol demand) lives along its coastlines. Transportation factors to consider as ethanol 

production continues to expand in the Nation’s heartland include: 

• The capacity of the Nation’s transportation system to move ethanol, feedstock, and co-products 

produced from ethanol. 

• The availability of corn close to ethanol plants (~ 50 miles). 

• The location of feedlots relative to ethanol producing areas. 

Ethanol production capacity expansion is occurring faster than originally anticipated. In May, USDA 

issued a report analyzing the effects of an expansion in biofuel demand on U.S. agriculture. The analysis 

focused on two ethanol expansion scenarios in relation to the Baseline long-term projections issued in 

February 2007. Under Scenario 1, U.S. ethanol production increases to 15 billion gallons per year (bgy) by 

2016. Under Scenario 2, U.S. ethanol production increases to 20 bgy by 2016. AMS applied its modal share 

analysis to the three USDA scenarios: baseline (February 2007 long-term projections) and the two scenarios 

described above to evaluate the impact of ethanol production expansion on grain transportation. The 5-year 

2000-2004 modal share rates were assumed to stay constant over the projected period. 

• Transportation impacts vary for each scenario and transportation mode due in part to modal share 

differences. 

• Rail and barge demand could decrease if corn exports decrease, but in the short-term increased ethanol 

and DDGS shipments could offset decreases in rail grain shipments. 

• Truck demand increases under all scenarios. 

In 2005, rail was the primary transportation mode for ethanol, shipping 60 percent of ethanol 

production or approximately 2.9 billion gallons of ethanol. Trucks shipped 30 percent and barges 10 

percent. 

The growth of ethanol production and the construction and expansion of new plants have not been 

hampered by logistical concerns. Railroads have kept up with ethanol growth in 2006. As ethanol 

production grew by 26 percent in one year, railroads’ shipments of alcohols (most of which is ethanol) 

increased by 28 percent. 

Rail freight is forecast to increase from 1,879 million tons in 2002 to 3,525 million tons by 2035, an 

increase of nearly 88 percent—before ethanol production expansion. 

Truck freight is forecast to almost double from 2002 to 2020, while driver shortages are projected to 

reach 219,000 by 2015—before ethanol production expansion. In 2004, there were 1.3 million long-haul 

heavy-duty truck drivers.

Ethanol Transportation Backgrounder 

Expansion of U.S. Corn-based Ethanol 

from the Agricultural Transportation Perspective 
USDA Ethanol Transportation Backgrounder, September 2007 1

INTRODUCTION 

On August 8, 2005, President Bush signed the Energy Policy Act of 2005 (EPAct 2005) 

into law. The comprehensive energy legislation established a nationwide renewable fuels 

standard (RFS) that was to start at 4 billion gallons in 2006 and increase to 7.5 billion gallons by 

2012 (Table 1). Under the RFS, an increasing percentage of the national fuel supply is to be 

provided by renewable, domestic fuels, including ethanol and 

biodiesel. The key objectives are to reduce consumer fuel 

prices, increase energy security, improve environmental 

quality, and stimulate growth in rural America. 

EPAct 2005, rising petroleum prices, and the switch 

from MTBE to ethanol as a gasoline oxygenator are widely 

credited for the expansion in ethanol production capacity. 

Ethanol is denatured alcohol used as a gasoline additive for its 

oxygen and octane content and is currently blended into almost 

half of US gasoline at a maximum 10 percent.1

 The U.S. 

ethanol industry surpassed the RFS in 2006, when 4.9 billion 

gallons of ethanol were produced and used. Expanded 

production capacity currently under construction is expected to 

double annual ethanol production capacity to 12.9 billion 

gallons by the end of 2009, if not sooner.2 

The President announced the Advanced Energy Initiative in the 2006 State of the Union 

Address. The Advanced Energy Initiative focuses on increasing research and development to 

encourage technological breakthroughs in the transportation and power sectors that will diversify 

our resource portfolio. 

In his 2007 State of the Union Address, President Bush announced his goal to expand 

consumption of alternative fuels (including biofuels) to 35 billion gallons in 2017 (“20 in 10”—

20 percent of projected gasoline use is to be replaced by renewable or alternative energy sources, 

as well as improved energy efficiency). Because cellulosic ethanol is not yet a current market 

reality, this report focuses on transportation requirements for corn-based ethanol and its impact 

on the grain transportation based on official USDA projections. 

 

1

 Ethanol producers are required by the U.S. Drug Enforcement Administration (DEA) to denature the 200-proof 

ethanol before it is shipped. DEA has specific guidelines for the process that makes the ethyl alcohol into a fuel 

grade ethanol—E95. 

2

 Renewable Fuels Association – capacity as of August 1, 2007, www.rfaethanol.org. 

Table 1: The Energy Policy Act

 2005 RFS Provisions

Year 

Renewable 

Fuels

(billions of gallons)

2006 4.0 

2007 4.7 

2008 5.4 

2009 6.1 

2010 6.8 

2011 7.4 

2012 7.5 
USDA Ethanol Transportation Backgrounder, September 2007 2

USDA Analysis of Expanded Ethanol Use on U.S. Agriculture

The rapidly expanding ethanol production capacity and Congressional inquiry prompted analysis 

from USDA in addition to the long-term baseline projections issued in February.3

 In May, 

USDA issued a special report analyzing the impact of expanding current corn starch-based 

biofuel production on agriculture under two alternative scenarios.4 The report examines two 

scenarios for crop years 2007-16 using an econometric model of the U.S. agricultural sector. 

Under Scenario 1, annual domestic ethanol production increases to 15 billion gallons (bgy) by 

2016—3 bgy higher than assumed in the baseline projections. Under Scenario 2, annual 

domestic ethanol production increases to 20 bgy by 2016 (figure 1). The increase in ethanol 

production is assumed to use corn as the feedstock. 

USDA projects corn production in the baseline and the 15-bgy scenarios to increase from 

13.05 billion bushels (bbu) in 2007 to 14.1 and 14.5 bbu in 2016, respectively. Under the 20-bgy 

scenario, corn production is expected to increase to 15.5 bbu by 2016 in (Appendix I, tables 1-3). 

Producers are expected to respond to the implied higher corn prices by shifting land from the 

production of soybeans into corn. Prices for minor feed grains are assumed to increase under 

both scenarios, thus increasing their estimated production slightly under both scenarios. The 

area planted to wheat, upland cotton, and rice would decline somewhat under both scenarios, as 

producers expand the area planted to feed grains. 

 USDA analysis projects that total area planted would increase under both scenarios, due 

to the overall increase in profitability in the crop sector. USDA analysis shows that total area 

planted would increase by an average of 0.9 and 1.9 million acres, for Scenarios 1 and 2, 

respectively. Thus, the area required to accommodate the expansion in ethanol production is 

composed of area planted to competing crops and from an overall expansion of area planted. 

Figure 1: Ethanol Use Scenarios

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Marketing Year

Billion gallons

Ethanol Use (USDA 2007 Baseline) Ethanol Use 15-bgy Scenario Ethanol Use 20-bgy Scenario

 

3 USDA Agricultural Projections to 2016, February 2007. http://www.usda.gov/oce/commodity/ag_baseline.htm 4

 An Analysis of the Effects of an Expansion in Biofuel Demand on U.S. Agriculture May 2007. 

http://www.usda.gov/oce/ 
USDA Ethanol Transportation Backgrounder, September 2007 3

Transportation Implications

As corn production increases, transportation demand would normally be expected to increase. 

However, corn use for fuel is likely to have a mixed impact on rail, truck, and barge 

transportation. For example, trucks are used to ship most of the corn used by ethanol plants. 

But, the newer and bigger ethanol plants may also use rail for inbound corn shipments. 

The variability in modal share of corn transportation is another contributing factor to the 

mixed impact on rail, barge, and truck sectors. Analysis of the average modal share for the five 

years (2000-2004) showed that railroads ship approximately 31 percent of corn to export 

locations and 30 percent to domestic locations; barges—68 percent to export and 2 percent to 

domestic locations; and trucks—2 percent to export locations and 67 percent to domestic 

locations.5 

Corn Modal Share (2000-2004 average), percent 

Rail Barge Truck 

Exports 31 68 2 

Domestic 30 2 67 

Transportation requirements for ethanol would increase proportionately as production 

increases. The necessary investment and growth in the biofuel market to reach the suggested 

long-term targets will depend in part on finding cost-effective, efficient, and safe transportation 

solutions. 

Railroads, trucks, and barges transport most ethanol today from production or import 

locations to locations where it is blended with gasoline at or near the point of retail distribution 

(Appendix II). To sustain the market growth needed to meet current suggested targets, or to 

reach either of the scenarios analyzed by USDA, infrastructure must be developed for 

transporting biofuel and co-products to market. 

 

5

 Transportation of U.S. Grains: a Modal Share Analysis, 1978-2004. (Total may not add due to rounding). 

http://www.ams.usda.gov/tmd/TSB/Modal_Share.pdf 
USDA Ethanol Transportation Backgrounder, September 2007 4

Figure 2: Ethanol Production Capacity by State

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

IA NE IL MN SD IN KS WI OH TX MI ND CA NY OR CO GA TN

million gallons

Operational Capacity Under construction/expansion

Source: Iowa State University, Center for Agricultural and Rural Development, May 11

ETHANOL SUPPLY AND DEMAND OVERVIEW 

Ethanol Supply 

For the first 6 months of 2007, U.S. ethanol production totaled nearly 3 billion gallons—32 percent higher 

than the same period last year. As of August 29, 128 ethanol plants with a total annual capacity of 

6.78 billion gallons were operating, and an additional 85 plants were under construction or 

expansion. U.S. ethanol production capacity is expanding rapidly and is currently expected to 

exceed 13 billion gallons by early 2009, if not sooner. 

Ethanol production is a function of several factors, including feedstock availability, 

profitability, tax incentives, 

and technological advances. 

Currently, nearly all ethanol 

produced in the United States 

uses corn as its feedstock. In 

theory, the economics of dry 

feedstock vs. finished liquid 

fuel transportation favor the 

location of the ethanol plants 

in the Corn belt, where the 

feedstock is plentiful and less 

expensive. Ethanol is now 

being produced in more than 

20 states, but about 90 percent of production capacity is concentrated in an 8-state area that 

encompasses Iowa, Nebraska, Illinois, Minnesota, South Dakota, Indiana, Kansas, and 

Wisconsin (Figure 2). 

Most ethanol is currently produced in the Nation’s heartland, but 80 percent of the U.S. 

population (and therefore implied ethanol demand) lives along its coastlines. Transportation 

factors to consider as ethanol production continues to expand in the Nation’s heartland include: 

• The capacity of the Nation’s transportation system to move ethanol, feedstock, and coproducts produced from ethanol. 

• The availability of corn close to ethanol plants (~ 50 miles). 

• The location of feedlots for use of co-products relative to ethanol producing areas. 
USDA Ethanol Transportation Backgrounder, September 2007 5

Ethanol Demand 

Ethanol is blended to a maximum ratio of 10 

percent ethanol and 90 percent gasoline (E10). 

Automobiles, as currently manufactured for the 

U.S. market, are capable of running on E10. The 

potential demand for ethanol if the United States 

consumes E10 nationwide could be 

approximately 14 billion gallons (Table 2). 

Efforts are underway to examine the use of 

blends beyond 10 percent in standard 

automobiles, which could increase potential 

demand of ethanol and avoid hitting the “blend 

wall” of an E10 ceiling. 

Some regions of the Nation have 

expanded ethanol use—for example, the 

California Air Resources Board recently 

approved the increased use of ethanol in gasoline 

from the current 5.7 percent volume limit to 10 

percent. California’s legislature is expected to 

pass the new rule in the fall of 2007 and the State 

may start blending ethanol at higher levels as 

early as 2008. This would increase total ethanol 

consumption in California to approximately 1.6 

billion gallons—about 23 percent of the current 

ethanol production capacity. Legislatures in 

southeastern States are also considering 

increasing ethanol-blending requirements. This 

adds to the uncertainty of ethanol demand in 

terms of volumes, timing, and geographic 

location. 

U.S. automakers have corporate average 

fuel economy (CAFE) standard incentives to 

increase the production and sale of flex-fuel 

vehicles (FFV’s) that are capable of using fuel 

that contains 85 percent ethanol and 15 percent 

gasoline (E85). It is estimated that today there 

are over 6 million FFV’s on the road in the 

United States (Appendix II). Automakers have 

pledged to increase that number to 10 million 

vehicles by 2010 and make FFV’s 50 percent of 

their production line by 2015. 

 As the number of FFV’s increases, the 

retail availability of E85 gas stations and fuel is 

expected to follow. Around 1,166 gas stations—

less than 1 percent of 121,446 gas stations in the United States in 2002—currently sell E85 gas, 

concentrated in the Midwest. 

State Potential 2005

Potential % 

Increase

Alabama 261 41 533

Alaska 29 6 396

Arizona 274 14 1,830

Arkansas 145 

California 1,579 918 72

Colorado 213 102 109

Connecticut 184 162 14

Delaware 42 

Dist. of Col. 15 

Florida 847 

Georgia 507 

Hawaii 45 

Idaho 63 

Illinois 527 455 16

Indiana 324 136 138

Iowa 166 128 29

Kansas 134 18 635

Kentucky 232 77 202

Louisiana 234 66 256

Maine 71 

Maryland 267 0 90,774

Massachusetts 287 10 2,867

Michigan 500 195 156

Minnesota 272 276

Mississippi 165 

Missouri 324 127 155

Montana 50 1 3,407

Nebraska 88 53 66

Nevada 109 53 106

New Hampshire 72 

New Jersey 436 7 6,386

New Mexico 98 6 1,526

New York 577 328 76

North Carolina 443 116 280

North Dakota 36 17 111

Ohio 524 264 99

Oklahoma 191 

Oregon 155 31 399

Pennsylvania 523 100 421

Rhode Island 38 10 301

South Carolina 259 

South Dakota 44 27 60

Tennessee 306 

Texas 1,158 29 3,890

Utah 104 2 4,568

Vermont 35 

Virginia 398 106 275

Washington 270 25 972

West Virginia 85 23 275

Wisconsin 257 127 102

Wyoming 33 

United States 13,997 4,059 245

http://www.eia.doe.gov/emeu/states/_seds_updates.html 

Table 2--Potential Ethanol Volumes 

(In million gallons, Based on 10% blend of 2004 Motor Gasoline 

Consumption)

Ethanol Consumption

Source: DOE/EIA; Table F13a: Wood, Waste, and 

Ethanol Consumption Estimates by Sector, 2005
USDA Ethanol Transportation Backgrounder, September 2007 6

ETHANOL TRANSPORTATION OUTLOOK: 

Current and Projected 

Transportation Background

Rapid expansion of the U.S. ethanol industry could have several implications for agricultural 

transportation, including increasing volumes of ethanol shipments and shifting grain and oilseed 

marketing patterns that could occur due to changes in production and use. 

Transportation is typically the third highest expense to an ethanol producer—after 

feedstock and energy. Balancing transportation operating expenses with fixed infrastructure 

costs can be critical to sustained profitability for each ethanol plant. Storage needs for ethanol 

are also related to transportation needs—truck and rail have a faster turnaround and barges can 

haul larger quantities. For example, trucks offer more flexibility and responsiveness to move the 

product as the market dictates, reducing storage needs at the ethanol plant. But, barge may offer 

cost savings due to volumes moved. Other transportation requirements include inbound 

feedstock and outbound co-products. Corn is shipped to the plant as feedstock (mostly by truck) 

and distillers grains (dry distillers grains with solubles (DDGS) and wet distillers grains 

(WDGs)) are shipped by truck, rail, or barge. 

For purposes of comparison, a large 

petroleum 2-barge unit tow hauls 2.52 million 

gallons (although ethanol is usually shipped 

in smaller, 630,000-gallon tanker barges), 

which is equivalent to about 80 railcars or 

300 tanker trailers (table 3 and Appendix II). 

In 2005, rail was the primary transportation 

mode for ethanol, shipping 60 percent of ethanol production—approximately 2.9 billion gallons 

of ethanol; followed by trucks—30 percent, and barges—10 percent (figure 3). 

Figure 3: Percent of U.S. Ethanol Production 

Moved by Mode, 2005

Barges

10%

Railroads

60%

Trucks

30%

Sources: Railroads - STB Waybill Sample, 2005; Barges - Army Corps 

of Engineers estimate; Trucks -- Total less Rail and Barge.

Table 3: CARGO CAPACITY COMPARISON

Capacity (units) Railcar Barge Truck

Grain (bushels) 3,500 52,500 910

Ethanol (gallons) 29,400 630,000 8,000

DDGS (tons) 100 1,500 25
USDA Ethanol Transportation Backgrounder, September 2007 7

 Ethanol transactions currently involve two types of marketing arrangements: 1) direct 

sales to customers and 2) movements to a strategic location. Both types of arrangements require 

transportation. Movement of the product can be arranged by the customer, supplier, or a third 

party—known in the petroleum industry as the marketer. 

As the number of companies producing ethanol increases, the share of ethanol marketed 

by third parties—marketers—is expected to rise as well. The marketers ensure supply 

interruptions are kept to a minimum and are able to move large volumes by gathering production 

from several smaller ethanol plants into unit trains (trains consisting of 85–100 cars that stay 

together from origin to destination). The role of the regional (shortline) railroads has increased 

for the shorter movements of ethanol to intermediate rail terminals. 

As ethanol volumes rise, the industry may start requiring quality control programs that 

ensure that shipments are not contaminated with other chemicals. Ethanol producers are 

expected to continue to rely on qualified ethanol marketers to efficiently distribute their products. 

Some railroads have instituted a Certificate of Authenticity program that certifies ethanol quality 

shipments on their railroad. 

Transportation Sensitivity to Demand and Distribution Changes

All three modes used to transport ethanol—rail, barge, and truck—are at or near capacity. Total 

rail freight is forecast to increase from 1,879 million tons in 2002 to 3,525 million tons by 2035, 

an increase of nearly 88 percent.6 Federal Highway Administration projects truck freight to 

almost double from 2002 to 2020, and driver shortages are projected to reach 219,000 by 2015. 

In 2004, there were 1.3 million long-haul heavy-duty truck drivers. 7 The lock and dam system 

on the inland waterways is aging.

The lack of excess transportation capacity increases the sensitivity of transportation to 

sudden changes in transportation demand and distribution patterns. Changes in these patterns 

brought on by rapidly increasing ethanol production could impact rail network performance, 

highway congestion, and barge traffic. For example, the increased sensitivity of transportation 

modes became evident in the aftermath of Hurricanes Katrina and Rita in 2005, when rail had 

insufficient capacity to transport displaced grain barge freight and trucks could not carry the 

grain economically for long distances. 

To date, logistical concerns have not hampered ethanol production growth or the 

construction and expansion of new ethanol plants. However, issues that may arise as production 

grows include: 

• Uncertainty about the location of and demand from terminal markets which consolidate, 

transload, and distribute ethanol for blending. Change in State policies towards ethanol 

may decrease this uncertainty. 

• Shifts in transportation demand for corn, ethanol, DDGS, and WDGs among rail, truck, 

and barge, in the context of overall traffic and future ethanol production locations. 

• Concern about the adequacy of transportation infrastructure to efficiently ship ethanol and 

co-products. 

• Increased transportation demand for agricultural inputs, mainly additional fertilizer for 

increased corn acreage. 

 

6

 U. S. Department of Transportation, Federal Highway Administration, Office of Freight Management and 

Operations, Freight Analysis Framework, 2006. 

7

 Federal Highway Administration; “The U.S. Truck Driver Shortage: Analysis and Forecasts.” Global Insight, May 

2005. 
USDA Ethanol Transportation Backgrounder, September 2007 8

• Expected long-term growth in overall freight volumes—U.S. Department of Transportation 

projects total inter-city freight by all modes to grow dramatically from 19.3 billion tons in 

2002 to 37.2 billion tons in 2035.8

 

Ethanol Production Scenarios and Transportation 

The increased use of corn for ethanol has raised corn prices, and has resulted in increased corn 

production in the United States and changes in grain transportation as corn use shifts from 

exports and feed use to ethanol production. In August, USDA forecast corn production for the 

2007/08 marketing year to reach about 13.05 billion bushels, up 2.5 billion bushels (24 percent) 

from last year. Increased grain production typically causes transportation demand to increase. 

Rapid ethanol production expansion, however, may affect where corn is transported and by 

which transportation mode. For example: 

• Much of the increase in the corn crop will be trucked to ethanol facilities. Trucks currently 

dominate the local transportation of corn to ethanol plants. Should this trend continue, it 

may lead to a shift in modal share of grain transportation. However, as corn production is 

expected to continue to increase, demand for grain transportation for all modes may rise 

proportionately. 

• In August, USDA projected 2007/08 corn exports at 2.15 billion bushels (up 50 million 

bushels from last year). Projected corn exports, however, decline in 2008/09 and 2009/10 

before increasing in subsequent years, which leads to variability in overall rail and barge 

transportation demand, assuming the historical 5-year average modal share stays the same 

(Appendix I, Table 4 footnotes)

9

. 

• Price competition in different locations (corn basis) may shift transportation patterns more 

frequently than in the past because corn used for fuel has created an additional demand for 

corn and corn origination patterns may change as ethanol production increases. However, 

if corn supplies are abundant, there may be less price competition and thus fewer shifts in 

transportation patterns. 

Transportation shifts are expected to continue over the next several years, until 

commodity markets adjust to sustained ethanol production. Since most of the export grain is 

shipped by rail and barge, a reduction in grain exports may reduce grain movements by these 

modes. 

Transportation requirements could increase as ethanol production reaches 15 billion 

gallons by 2016; demand for rail and barge services then may recede as export demand decreases 

under the 20 billion gallon scenario (figures 4-6 and Appendix I, Tables 1-3). In the near-term, 

however, sharp increases in ethanol and DDGS movements are expected to offset any decreases 

in rail and barge grain transportation due to decreased exports and domestic use. Trucking 

demand continues to grow for all three scenarios, increasing most dramatically as ethanol 

production grows from the baseline to the 15-billion gallon target. 

 

8

 U.S. DOT – Freight Analysis Framework, 2002 and 2006. 

9

 Changes in market conditions and transportation costs may change modal shares for grains, ethanol, and coproducts. 
USDA Ethanol Transportation Backgrounder, September 2007 9

Figure 4: Rail Requirement Scenarios

0.00

0.50

1.00

1.50

2.00

2.50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Marketing Year

Mill. Carloads

2007 Baseline Scenario 15-bgy Scenario 20-bgy Scenario

Figure 5: Barge Requirement Scenarios

-

10,000

20,000

30,000

40,000

50,000

60,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Marketing Year

 Bargeloads

2007 Baseline Scenario 15-bgy Scenario 20-bgy Scenario

 

Figure 6: Trucking Requirement Scenarios

-

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Marketing Year

Million Truckloads

2007 Baseline Scenario 15-bgy Scenario 20-bgy Scenario
USDA Ethanol Transportation Backgrounder, September 2007 10

 Increased ethanol production could lead major corn-producing states to become corndeficit states, resulting in the need 

to source corn from other states 

and increasing transportation 

distances for sourced feedstock. 

Corn prices are expected to vary 

by location to ration the demand 

between domestic feedlots, 

ethanol plants, and exports. For 

example, as demand for corn at 

ethanol plants increases, corn 

prices may strengthen near the 

ethanol-producing areas relative 

to corn prices in export locations. 

This impact is demonstrated by 

the corn basis, which is the 

difference between the local cash 

prices and the nearby Chicago Board of Trade futures contract. Transportation demand may be 

higher in the areas with stronger prices (stronger basis). Increases in transportation costs, 

however, may also weaken (decrease) the interior basis, which would cause farm prices to fall in 

those locations.

The domestic corn basis during the first half of 2007 has been strengthening relative to 

exports until recently (Figure 7). Corn futures prices have been decreasing from the high of over 

$4.00 in the spring to $3.20 by the end of July. However, the corn basis in Nebraska and at the 

Gulf ports have been strong, indicating relatively stronger demand in those locations for ethanol 

and export use. 

Rail

Railroads shipped about 60 

percent of ethanol produced in 

the United States in 2005, or 

82,483 carloads (Figure 8) and 

have kept up with the annual 

ethanol production growth of 

26 percent in 2006. According 

to preliminary Freight 

Commodity Statistics, the 

Class I railroads’ origination of 

all alcohols10 grew by 28 

percent. 

 

10 Preliminary data does not include ethanol-specific statistics, but nearly all growth in alcohol movements during 

2006 is expected to be from increased ethanol movement. Freight Commodity Statistics, compiled by Escalation 

Consultants, Inc. 

 Figure 7: 2007 Weekly Corn Basis (Cash minus 

Futures Price)

-40

-30

-20

-10

0

10

20

30

40

50

60

1/5 2/5 3/5 4/5 5/5 6/5 7/5

cents/bushel

Basis in IL Basis in NE Basis at Gulf Ports

Source: GTR, Data used in Table 2 and Fig. 1, page 3.

 -33

46

-1

Figure 8: Carloads of Ethanol Terminated by

Class I Railroads, 2000-2005

39,764 43,244

48,668

58,324

68,960

82,483

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2000 '01 '02 '03 '04 '05

carloads

Source: STB, Waybill Sample
USDA Ethanol Transportation Backgrounder, September 2007 11

The expected growth in rail movements of ethanol may pose some hurdles for shippers. 

Ethanol volumes moved by rail could jump from the projected 190,816 carloads in 2007 to over 

408,000 in 2016 (table 4). Class I railroads, however, assert that the additional volume due to 

ethanol is well below the 20.8 million carloads of cargo freight they originated in 2006. 

The variability and uncertainty of rail grain transportation demand is a function of grain 

export projections. For example, in the 20-bgy scenario, projected grain exports decline and rail 

grain transportation demand would decrease. However, that decrease is more than offset by the 

increased demand for ethanol and DDGS rail transportation. The consequences of the increased 

ethanol and DDGS transportation under the 20-bgy scenario occurring during a relatively short 

period could include a strain on rail transportation and logistics infrastructure. Thus, the 

interdependence of corn used for fuel vs. corn used for feed (domestic and exports) may translate 

into uncertainty for rail transportation. 

Table 4: Rail Summary, 2006-2010, and 2016 Marketing Years (carloads) 

 2006 2007 2008 2009 2010 2016 

10-yr 

Change 

Ethanol 

 Baseline 119,347 190,816 208,163 219,592 225,306 245,306 125,959 

 15-bgy 119,347 190,816 227,755 245,551 257,633 306,122 186,776 

 20-bgy 119,347 190,816 248,163 276,163 298,449 408,163 288,816 

All Grain 

 Baseline 1,395,263 1,441,309 1,406,463 1,395,589 1,412,880 1,493,286 98,023 

 15-bgy 1,393,606 1,441,309 1,369,997 1,390,367 1,423,634 1,560,152 166,546 

 20-bgy 1,393,606 1,441,309 1,371,766 1,343,115 1,344,955 1,357,424 -36,182 

DDGS 

 Baseline 26,338 41,650 45,325 47,775 49,000 53,288 26,950 

 15-bgy 26,338 41,650 49,533 53,403 56,030 66,576 40,239 

 20-bgy 26,338 41,650 53,971 60,061 64,907 88,768 62,431 

Unit Train Economics

It is more efficient and cost effective for railroads to move unit trains. The primary reasons 

include a higher asset utilization rate and lower inventory carrying costs. The industry “rule of 

thumb” is that the ethanol railcar utilization rate for a unit train is 30 turns per year, compared to 

12 turns per year for a single-car shipment. Inventory carrying costs (travel, dwell, and 

unloading times) for a single-car shipment of ethanol could be as much as four-times that of a 

unit train. Unit train movements would increase the average number of loadings per year for 

each ethanol tank car, which could help alleviate potential tank car shortages. 
USDA Ethanol Transportation Backgrounder, September 2007 12

Rail tariff rates for unit trains are typically lower than those for single-car and smaller 

shipments. For example, BNSF’s tariff rate is discounted $900 for a gathered unit train of 

ethanol vs. a single car shipment of ethanol from Southwest Iowa to the Los Angeles Basin, 

California (Table 5). 

Table 5: Sample BNSF Tariff Rates, effective October, 2007 (excludes fuel surcharges)

Sample Route Unit Train Gathered Single Car

Unit vs. 

Gathered

Gathered 

vs. Single

From SW IA to IL $2,100 $2,500 $2,900 -$400 -$400

From SW IA to CA, LA Basin $3,900 $4,400 $5,300 -$500 -$900

From SW IA to IL $0.07 $0.09 $0.10 -$0.014 -$0.01

From SW IA to CA, LA Basin $0.13 $0.15 $0.18 -$0.017 -$0.03

http://www.bnsf.com/markets/agricultural/ag_news/year2007/pricing07/p08-23-07a.html

$/car

$/gal

Discount

UNIT TRAIN: a 95-car ethanol train originating at 1 plant 

GATHERED TRAIN: originating at 2 or 3 plants

Construction of unit train infrastructure at destination terminals—mostly owned by 

blenders, refiners, and third-party providers—may become a key to the efficiency of rail ethanol 

transportation. Factors that may be contributing to a slower rate of the infrastructure 

development include its capital-intensive nature as well as the sometimes-lengthy permitting 

process. Locations that are either capable of accepting unit trains of ethanol or currently 

expanding that capacity include: 

• Watson, Carson and Stockton, CA • Ft. Worth and Arlington, TX 

• Providence, RI • Albany, NY 

• Sewaren and Linden, NJ • Baltimore, MD 

Future demand locations could include population centers in the Southeast, the Gulf Coast and 

Delta Region, and the Pacific Northwest. New terminal facilities that consolidate smaller 

ethanol shipments from different plants into unit trains are under construction in Manly, IA, and 

Sauget (near St. Louis), MO. 

Similar economics are developing in the DDGS rail shipments. Unit trains of DDGS are 

currently discounted on BNSF by approximately $7.50 per ton relative to single car 

movements.11 Additional DDGS storage at origin and unit train unloading infrastructure at 

destination would encourage further unit train utilization of DDGS.

 

11 http://www.bnsf.com/markets/agricultural/ag_news/year2007/pricing07/p06-14-07a.html 
USDA Ethanol Transportation Backgrounder, September 2007 13

INFRASTRUCTURE ISSUES 

Supply Chain Issues

Several supply chain issues could inhibit growth in the ethanol industry. The efficiency of the 

ethanol transportation system may begin to depend on the ability of the blending market to 

accommodate additional quantities of ethanol. 

The supply and demand of ethanol may become temporarily out of balance because 

blenders require time and financial incentives to add blending capacity. These extra financial 

incentives, including cheaper ethanol, could be in addition to the current blender tax credit of 

$0.51 per gallon, which is in place through 2010. Blenders are watching Federal and State 

legislative processes carefully to assess the legislative risk to their capital investments. 

Grain markets may also be affected by ethanol supply chain issues. There is concern that 

grain storage shortages may occur as ethanol production capacity and corn crops continue to 

expand.

Rail Capacity 

Rail capacity typically depends on several factors, including locomotive power and railcar 

availability and utilization, which are affected by train speeds, dwell time, loading and unloading 

times, and track capacity. In addition to an efficient logistics infrastructure, an adequate supply 

of railcars and other transportation equipment for ethanol and DDGS are needed to sustain 

growth in the ethanol industry. 

Ethanol Rail Tank Cars

Ethanol is shipped in standard rail tank cars (approved for flammable liquids)—DOT 111A or 

AAR T108 rail cars 

(Appendix II). As of January 

1, 2007, 41,000 rail tank cars 

capable of shipping ethanol 

were in use. Orders for new 

cars increased substantially 

in 2006 with a surge in 

ethanol plant construction 

and are expected to almost 

double this fleet in the next 

2–21⁄2 years. Rail tank cars 

are nearly all privately 

owned, either by leasing 

companies or shippers. Orders for new rail tank cars, 75 percent of which are estimated to be for 

ethanol use, started to increase in the 4th quarter 2005 and continued to increase through the 3rd

quarter 2006 (Figure 9). Rail tank car manufacturers increased production lines, but the backlog 

grew from about 10,000 railcars in the 3rd quarter 2005 to a peak of 36,334 railcars in the 4th

quarter 2006. By the end of 1st quarter 2007, the manufacturing backlog had decreased to 36,166 

railcars. 

Figure 9: New Rail Tank Car Orders, Deliveries, and Backlog

10,111 10,923 9,936

14,041

20,702

25,564

34,148

36,334 36,166

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Qtr 1 '05 Qtr 2 '05 Qtr 3 '05 Qtr 4 '05 Qtr 1 '06 Qtr 2 '06 Qtr 3 '06 Qtr 4 '06 Qtr 1 '07

Number of tank cars

Orders Deliveries Backlog

Source: Rail Supply Institue, quarterly reports.
USDA Ethanol Transportation Backgrounder, September 2007 14

Grain Rail Cars

Increased rail service demand is expected to affect railcar fleet composition and availability for 

moving corn, ethanol, and DDGS.12 Most grain is shipped in designated covered hopper railcars 

C113, C114, C213, or C313, which can also be used for other dry bulk commodities (Appendix 

II). Total covered hopper railcar fleet as of January 1, 2007, was 268,000 railcars—almost 2 

percent higher than on January 1, 2005. However, the grain rail car fleet share is estimated to be 

approximately 160,800—60 percent of the total covered hopper fleet. 

Distillers Dried Grains with Solubles (DDGS) Transportation Issues

Ethanol plants that use corn as feedstock produce a co-product called distillers grains (DDGSdried distillers grains with solubles, WDG-wet distillers grains, and MDG-modified distillers 

grains)13. For every 56-pound bushel of corn, 17.5 pounds of DDGS and 2.76 gallons of ethanol 

are produced, on average. Dairy cattle operations and cattle feedlots are the primary domestic 

users of distilled grains as a protein supplement for the ruminant animals. Research is ongoing 

for increasing the DDGS use by poultry and hog operations, which currently is limited due to 

nutritional challenges DDGS present to non-ruminant animals. 

Production of DDGS is expected to grow proportionately with ethanol production 

increases. Currently, about 10 percent of DDGS are exported—1.25 million metric tons (mt) in 

2006. According to the USDA’s Foreign Agricultural Service (FAS), the United States exported 

approximately 900,000 metric tons of DDGS during the first 6 months of 2007—60 percent 

higher than the same period last year. The trend of increased DDGS exports is expected to 

continue. Increased use of barges to ship DDGS to export locations is likely. 

The original co-product of distilled grains from ethanol production is wet distillers grains 

(WDG). Shipping the WDG’s saves energy, but the product is perishable and needs to be 

trucked to a nearby feeding operation within a couple of days. Drying the product adds cost for 

the ethanol producer, but provides a more stable product for transport and storage. Railroads and 

barges ship DDGS long distances and trucks are used for shorter distances. 

Demand for shipping DDGS to domestic and export markets has been increasing, thus 

expanding demand for super jumbo covered hoppers—railcars that are greater than 5,500 cubic 

feet (ft3) and have wide gates for easier flowability. During storage and transport, DDGS tends 

to cake and bridge between particles. Thus, flowability has become one of the major issues that 

needs to be addressed for effective sales, marketing, distribution, and utilization of distillers 

grains. Because these co-products do not always flow easily from railcars, workers sometimes 

hammer the car sides and hopper bottoms in order to induce flow. This can lead to severe 

damage to the rail cars themselves and can also pose worker safety issues. 

 

 

12 Railcar fleet statistics are from Association of American Railroads, telephone conversation with Craig Rockey on 

July 3, 2007. 

13 http://www.usda.gov/oce/reports/energy/USDA_2002_ETHANOL.pdf
USDA Ethanol Transportation Backgrounder, September 2007 15

According to the Rail 

Supply Institute, from first quarter 

2005 through first quarter 2007, 

new deliveries of super jumbo 

railcars have totaled 11,307, with 

most of the growth occurring in 

2006. DDGS are estimated to use 

about 70 percent of this fleet 

(Figure 10). DDGS railcars are 

nearly all privately owned. 

Flowability issues 

associated with shipping DDGS, 

based on the feed industry 

experience of using regular grain covered hoppers, have created expectations of a shorter 

lifespan for railcars used to ship DDGS. DDGS are also shipped in containers for export. The 

same flowability issues have started to affect availability of containers. DDGS transportation 

may be affected if feedlot operations move closer to the ethanol producing areas—more 

distillers’ grains would be sold wet, requiring less rail and more truck transportation to feedlots 

and decreasing availability of DDGS for export. 

Truck Service 

Corn for ethanol is most frequently delivered to plants by trucks, typically from corn farms 

within a 50-mile radius. The truckload requirements just for corn to ethanol—if trucks are 

assumed to carry 98 percent of the corn delivered to ethanol plants—are expected to increase 

from 2.3 million in 2006 to 4.7 million truckload equivalents by 2016. The demand for corn 

trucking increases substantially—to 5.9 and 7.8 million truckloads under scenarios 1 and 2, 

respectively (table 6). 

Table 6: Truck Summary, 2006-2010, and 2016 Marketing Years (million truckloads) 

 2006 2007 2008 2009 2010 2016 

10-yr 

Change 

Domestic and Export Corn 

 Baseline 5.29 5.30 5.33 5.30 5.33 5.55 0.3 

 15-bgy 5.29 5.30 5.08 5.32 5.49 6.20 0.9 

 20-bgy 5.29 5.30 5.09 4.95 4.87 4.61 -0.7 

Corn for Fuel Use 

 Baseline 2.32 3.66 3.98 4.20 4.31 4.68 2.4 

 15-bgy 2.32 3.66 4.35 4.69 4.93 5.85 3.5 

 20-bgy 2.32 3.66 4.74 5.28 5.71 7.80 5.5 

Standard gasoline tanker trucks (DOT MC306 Bulk Fuel Haulers) are used to ship 

ethanol from ethanol plants to the blending terminals. These trucks move an estimated 30 

percent of ethanol. The current fleet size of the independently operated tank trucks is 

approximately 10,000. Many petroleum companies own their tanker truck fleet and are not 

included in the total. 

Figure 10: Rail Jumbo Hopper Cars (>5,500ft3): Orders and 

Deliveries

4,164 4,015

5,311

6,519

7,935

8,694

12,018

13,381

14,323

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Qtr 1 '05 Qtr 2 '05 Qtr 3 '05 Qtr 4 '05 Qtr 1 '06 Qtr 2 '06 Qtr 3 '06 Qtr 4 '06 Qtr 1 '07

Number of tank cars

Orders Deliveries Backlog

Source: Rail Supply Institue, quarterly reports.
USDA Ethanol Transportation Backgrounder, September 2007 16

Constraints to truck service include the availability of truck drivers (especially with 

HAZMAT certification), equipment shortages, and the differences in ethanol routes from the 

well-established and predictable petroleum routes—in part due to the rapid growth of new 

ethanol plant construction. In addition, overall truck freight is forecast to almost double from 

2002 to 2020, while driver shortages are projected to reach 219,000 by 2015. In 2004, there 

were 1.3 million long-haul heavy-duty truck drivers. 

Tank Barge Service 

Barges move an estimated 10 percent of ethanol. The main terminals served by barge include 

Chicago, IL, New Orleans, LA, Houston, TX, and Albany, NY. Ethanol is typically shipped in 

10,000–15,000 barrel14 tank barges. The number of ethanol plants located near a river facility, 

however, is relatively small. As the industry grows, the share moved by barge may increase. 

According to Informa Economics, 2,808 tank barges were in operation in 2006, up from 2,782 in 

2005, and 2,777 in 2004. Construction of a 16.6-million-gallon ethanol terminal on the 

Mississippi River at Sauget, IL, is expected to be completed by June 2008. The Army Corps of 

Engineers has approved construction of a 5th ethanol storage tank at this location to hold an 

additional 480,000 gallons by the third quarter of 2008. The terminal will be capable of loading 

1.26-million-gallon tank barges as well as 95-car unit trains and trucks. 

Potential Pipeline Developments

Pipelines are considered to be the safest and most cost-efficient mode of transportation. The 

ethanol industry, however, is fairly dispersed and significant infrastructure investments would 

still be necessary to consolidate sufficient quantities that could then be moved through pipelines. 

No ethanol is currently shipped by pipeline due to its corrosive nature and ability to 

attract water. The pipeline industry, however, led by the Association of Oil Pipe Lines (AOPL) 

and American Petroleum Institute (API), is moving forward with an accelerated research 

program to address integrity issues related to shipping ethanol/gasoline blends. The project, 

managed by the Pipeline Research Council International (PRCI), will focus on an accelerated 

research effort due to be concluded in 6-12 months. It plans to identify those blends that: 

• Can be moved in existing pipelines with little to no modification to the system. 

• Can be moved with appreciable modifications. 

• Cannot be moved in existing systems but could be moved in specially designed new 

transmission or short-haul distribution systems. 

If and when pipelines are able to ship ethanol blends, it could alleviate potential strain on the rail 

system. Federal Energy Regulatory Commission and Pipeline Hazardous Materials Safety 

Administration (PHMSA) regulate the pipeline industry. PHMSA is currently accepting 

comments on the adequacy of existing regulatory definitions and standards regarding bio-fuels 

and pipeline safety. Comments are also welcomed on short- and long-term opportunities and 

challenges associated with transporting biofuels. (http://dms.dot.gov) 

 

 

14 1 barrel = 42 gallons. 
USDA Ethanol Transportation Backgrounder, September 2007 17

Government Biofuel Activities 

The Federal government support for a biofuel economy continues to be strong as defined 

by the national energy policy goals. Transportation issues associated with higher ethanol 

production targets and biomass feedstock will have to be evaluated as the new technology and 

other biofuels become a market reality. USDA and DOE co-chair the legislatively-mandated 

federal Biomass Research and Development (R&D) Board aimed at coordinating the Executive 

Branch activities to promote the use of biofuels. 

The 2002 Farm Bill for the first time included Energy in its title. The 2007 Farm Bill, 

working its way through Congress, includes several provisions aimed at increasing biofuel 

production, especially cellulosic-based fuels, and the bioenergy sector in general. 

State government energy policies vary greatly and are likely to change as the national 

energy policy goals are translated into regional policy goals. The current (August 2007) status 

of State ethanol incentives is as follows.15

Seven states have enacted Renewable Fuels Standards that require the use of ethanol-blended 

fuel: Hawaii, Iowa, Louisiana, Minnesota, Missouri, Montana, and Washington. In addition, 

California legislature is expected to enact the higher ethanol blending rule in the fall of 2007. 

Fourteen states have retailer incentives for ethanol blends and E-85: Alaska, Connecticut, 

Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Missouri, Minnesota, North Dakota, 

Oklahoma, and South Dakota. 

Twenty-two states have some type of incentive for ethanol producers: Hawaii, Illinois, 

Indiana, Kansas, Maine, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New 

York, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, 

Tennessee, Texas, Virginia, and Wyoming. 

 

15 Sources: American Coalition for Ethanol, and the Renewable Fuels Association 

http://www.ethanol.org/index.php?id=79&parentid=26) and http://www.ethanolrfa.org/policy/actions/state/
USDA Ethanol Transportation Backgrounder, September 2007 18

APPENDIX I – Scenario Tables 

Table 1: Baseline Scenario for Transportation Requirements Based on Agricultural Projections to 2016 and World Agricultural Supply and Demand Estimates, August 10, 2007*. 

 August 17, 2007 Units1 2006 1 2007 1 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S. Ethanol Production mg 5,848 9,350 10,200 10,760 11,040 11,250 11,460 11,600 11,740 11,880 12,020

 Yield g/bu 2.72 2.75 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76

Biodiesel Use mg 500 600 625 650 675 700 700 700 700 700 700

Corn Production mbu 10,535 13,054 12,680 12,835 13,150 13,305 13,465 13,620 13,780 13,935 14,095

 Share used for fuel percent 20 26 29 30 30 31 31 31 31 31 31

Grain Use:

 Corn Use mbu 12,690 11,375 12,740 12,900 13,110 13,295 13,455 13,615 13,775 13,940 14,075 

 Feed & residual mbu 5,750 5,750 5,775 5,725 5,750 5,775 5,800 5,850 5,900 5,950 5,975 

 Food, seed, & industrial mbu 3,525 4,790 5,115 5,325 5,435 5,520 5,605 5,665 5,725 5,790 5,850 

 Fuel alcohol use mbu 2,150 3,400 3,700 3,900 4,000 4,075 4,150 4,200 4,250 4,300 4,350 

 Domestic Use (less fuel alcohol use) mbu 7,125 7,140 7,190 7,150 7,185 7,220 7,255 7,315 7,375 7,440 7,475 

 Exports mbu 2,100 2,150 1,850 1,850 1,925 2,000 2,050 2,100 2,150 2,200 2,250 

Corn Transportation 

 Rail (Class I) carloads 811,071 816,686 795,400 791,857 801,386 810,914 818,300 827,900 837,500 847,543 854,929 

 Barge bargeloads 29,914 30,568 26,701 26,686 27,670 28,655 29,316 29,987 30,657 31,330 31,990 

 Truck truckloads 5,292,033 5,304,176 5,334,396 5,304,945 5,332,363 5,359,780 5,386,648 5,431,923 5,477,198 5,526,154 5,553,022

Corn for Alcohol Use Transport.

 Rail (Class I) carloads 12,286 19,429 21,143 22,286 22,857 23,286 23,714 24,000 24,286 24,571 24,857 

 Barge bargeloads

 Truck truckloads 2,315,385 3,661,538 3,984,615 4,200,000 4,307,692 4,388,462 4,469,231 4,523,077 4,576,923 4,630,769 4,684,615

 DDGS Production2 mil. s. tons 19 30 32 34 35 36 36 37 37 38 38 

 Exports mil. s. tons 1.9 3.0 3.2 3.4 3.5 3.6 3.6 3.7 3.7 3.8 3.8 

DDGS Transportation 

 Rail (Class I) carloads 26,338 41,650 45,325 47,775 49,000 49,919 50,838 51,450 52,063 52,675 53,288 

 Barge bargeloads 251 397 432 455 467 475 484 490 496 502 508 

 Truck truckloads 1,023,162 647,000 1,113,441 1,173,627 1,203,720 1,226,290 1,248,860 1,263,906 1,278,953 1,293,999 1,309,046

 Soybean Use mbu 3,066 2,984 2,993 2,886 2,912 2,947 2,976 3,001 3,032 3,062 3,088 

 Crush mbu 1,795 1,800 1,870 1,895 1,920 1,950 1,975 1,995 2,015 2,035 2,060 

 Seed and residual mbu 171 164 143 146 147 147 151 151 152 152 153 

 Domestic Use mbu 1,966 1,964 2,013 2,041 2,067 2,097 2,126 2,146 2,167 2,187 2,213 

 Exports mbu 1,100 1,020 980 845 845 850 850 855 865 875 875 

Soybean Transportation 

 Rail (Class I) carloads 196,731 188,869 187,223 175,389 176,577 178,434 179,760 181,160 183,091 184,977 186,166 

 Barge bargeloads 13,485 12,585 12,164 10,662 10,677 10,751 10,767 10,835 10,959 11,083 11,098 

 Truck truckloads 1,834,571 1,826,637 1,867,176 1,881,714 1,904,857 1,931,945 1,957,758 1,975,945 1,995,407 2,013,978 2,037,121

 Wheat Use mbu 2,050 2,241 2,246 2,270 2,300 2,300 2,320 2,330 2,340 2,350 2,365 

 Food mbu 925 930 935 940 945 950 955 960 965 970 975 

 Seed mbu 81 81 81 80 80 80 80 80 80 80 80 

 Feed & residual mbu 134 180 280 300 300 270 260 240 220 200 185 

 Domestic Use mbu 1,140 1,191 1,296 1,320 1,325 1,300 1,295 1,280 1,265 1,250 1,240 

 Exports mbu 1,050 910 950 950 975 1,000 1,025 1,050 1,075 1,100 1,125 

Wheat Transportation 

 Rail (Class I) carloads 315,600 346,740 344,297 347,657 352,643 353,429 357,014 359,200 361,386 363,571 366,457 

 Barge bargeloads 6,240 7,200 6,514 6,514 6,686 6,857 7,029 7,200 7,371 7,543 7,714 

 Truck truckloads 666,374 700,549 753,846 767,033 770,879 758,242 756,593 749,451 742,308 735,165 730,769 

 Sorghum Use mbu 305 445 320 320 325 325 325 325 325 320 320 

 Feed & residual mbu 110 180 120 120 125 125 125 125 125 120 120 

 Food, seed, & industrial mbu 45 65 50 50 50 50 50 50 50 50 50 

 Domestic Use mbu 155 245 170 170 175 175 175 175 175 170 170 

 Exports mbu 150 200 150 150 150 150 150 150 150 150 150 

Sorghum Transportation 

 Rail (Class I) carloads 25,000 34,429 25,429 25,429 25,571 25,571 25,571 25,571 25,571 25,429 25,429 

 Barge bargeloads 571 762 571 571 571 571 571 571 571 571 571 

 Truck truckloads 206,044 312,637 220,879 220,879 225,824 225,824 225,824 225,824 225,824 220,879 220,879 

 Barley Use mbu 231 235 220 220 226 226 226 231 232 232 237 

 Feed & residual mbu 55 60 45 45 50 50 50 55 55 55 60 

 Food, seed, & industrial mbu 156 155 155 155 156 156 156 156 157 157 157 

 Domestic Use mbu 211 215 200 200 206 206 206 211 212 212 217 

 Exports mbu 20 20 20 20 20 20 20 20 20 20 20 

Barley Transportation 

 Rail (Class I) carloads 34,574 35,157 32,971 32,971 33,846 33,846 33,846 34,574 34,720 34,720 35,449 

 Barge bargeloads

 Truck truckloads 118,549 120,659 112,747 112,747 115,912 115,912 115,912 118,549 119,077 119,077 121,714 

1

USDA, World Agricultural Supply and Demand Estimates (WASDE), August 10, 2007.

2

DDGS yield = 17.5 lbs/bushel of corn used in ethanol production.

Marketing year

*

See Transportation Assumptions in the Summary of Transportation Requirements Table 4, Appendix I; USDA Long-term Projections Report, OCE-2007-1, February 2007. 

Units: mg=million gallons; mbu=million bushels; mil. s. tons=million short tons.
USDA Ethanol Transportation Backgrounder, September 2007 19

Table 2: Transportation Requirements Based on a 15-bgy Scenario* and August 12, 2007 WASDE for 2006 and 2007.

 August 17, 2007 Units1 2006 1 2007 1 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S. Ethanol Production mg 5,848 9,350 11,160 12,032 12,624 13,125 13,584 13,980 14,348 14,688 15,000

 Yield g/bu 2.72 2.75 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76

Biodiesel Use mg 500 600 700 755 805 850 880 910 940 970 1,000

Corn Production mbu 10,535 13,054 12,781 12,945 13,325 13,497 13,715 13,878 14,091 14,249 14,454

 Share used for fuel percent 20 26 32 34 34 35 36 36 37 37 38

Grain Use:

 Corn Use mbu 12,690 11,375 12,686 13,305 13,811 14,245 14,635 14,971 15,299 15,609 15,901 

 Feed & residual mbu 5,750 5,750 5,434 5,754 5,975 6,163 6,337 6,487 6,629 6,764 6,886 

 Food, seed, & industrial mbu 3,525 4,790 5,454 5,775 5,995 6,183 6,357 6,508 6,649 6,785 6,907 

 Fuel alcohol use mbu 2,150 3,400 4,043 4,359 4,574 4,755 4,922 5,065 5,199 5,322 5,435 

 Domestic Use (less fuel alcohol use) mbu 7,125 7,140 6,845 7,170 7,397 7,591 7,772 7,930 8,079 8,228 8,358 

 Exports mbu 2,100 2,150 1,797 1,776 1,840 1,898 1,941 1,976 2,021 2,060 2,108 

Corn Transportation 

 Rail (Class I) carloads 811,071 816,686 760,356 787,278 812,884 835,045 854,742 871,718 888,795 905,286 920,956 

 Barge bargeloads 29,914 30,568 25,888 25,738 26,655 27,476 28,100 28,613 29,252 29,811 30,489 

 Truck truckloads 5,292,033 5,304,176 5,079,445 5,317,800 5,486,406 5,630,781 5,764,938 5,881,897 5,992,790 6,103,106 6,199,884

Corn for Alcohol Use Transport.

 Rail (Class I) carloads 12,286 19,429 23,106 24,911 26,137 27,174 28,124 28,944 29,706 30,410 31,056 

 Barge bargeloads

 Truck truckloads 2,315,385 3,661,538 4,354,515 4,694,760 4,925,753 5,121,237 5,300,334 5,454,849 5,598,439 5,731,104 5,852,843

 DDGS Production2 mil. s. tons 19 30 35 38 40 42 43 44 45 47 48 

 Exports mil. s. tons 1.9 3.0 3.5 3.8 4.0 4.2 4.3 4.4 4.5 4.7 4.8 

DDGS Transportation 

 Rail (Class I) carloads 26,338 41,650 49,533 53,403 56,030 58,254 60,291 62,049 63,682 65,191 66,576 

 Barge bargeloads 251 397 472 509 534 555 574 591 606 621 634 

 Truck truckloads 1,023,162 647,000 1,216,804 1,311,880 1,376,428 1,431,053 1,481,099 1,524,276 1,564,400 1,601,471 1,635,489

 Soybean Use mbu 3,041 2,984 2,985 2,881 2,899 2,935 2,957 2,985 3,011 3,045 3,066 

 Crush mbu 1,780 1,800 1,876 1,906 1,929 1,960 1,984 2,008 2,029 2,054 2,080 

 Seed and residual mbu 171 164 143 145 146 146 150 150 151 151 152 

 Domestic Use mbu 1,951 1,964 2,019 2,051 2,075 2,106 2,134 2,158 2,180 2,205 2,232 

 Exports mbu 1,090 1,020 966 830 824 829 822 827 831 841 835 

Soybean Transportation 

 Rail (Class I) carloads 195,074 188,869 186,105 174,425 174,901 176,790 177,455 178,989 180,338 182,444 183,100 

 Barge bargeloads 13,364 12,585 12,006 10,503 10,444 10,518 10,461 10,526 10,580 10,707 10,654 

 Truck truckloads 1,820,451 1,826,637 1,871,377 1,889,641 1,910,731 1,938,352 1,963,146 1,984,734 2,004,291 2,026,992 2,050,784

 Wheat Use mbu 2,050 2,241 2,245 2,267 2,295 2,295 2,314 2,323 2,332 2,342 2,355 

 Food mbu 925 930 935 940 945 950 955 960 965 970 975 

 Seed mbu 81 81 81 80 80 80 80 80 80 80 80 

 Feed & residual mbu 134 180 285 304 305 277 269 250 231 212 197 

 Domestic Use mbu 1,140 1,191 1,301 1,324 1,331 1,307 1,304 1,290 1,277 1,262 1,252 

 Exports mbu 1,050 910 945 942 965 987 1,010 1,033 1,056 1,080 1,103 

Wheat Transportation 

 Rail (Class I) carloads 315,600 346,740 344,033 346,963 351,669 352,299 355,672 357,719 359,699 361,781 364,430 

 Barge bargeloads 6,240 7,200 6,478 6,462 6,616 6,771 6,924 7,084 7,239 7,404 7,564 

 Truck truckloads 666,374 700,549 756,154 769,093 773,467 761,690 760,893 754,269 747,790 740,843 736,609 

 Sorghum Use 305 445 326 329 337 338 342 341 346 341 343 

 Feed & residual mbu 110 180 121 122 128 128 130 129 132 127 128 

 Food, seed, & industrial mbu 45 65 50 50 50 50 50 50 50 50 50 

 Domestic Use mbu 155 245 171 172 178 178 180 179 182 177 178 

 Exports mbu 150 200 155 157 159 160 161 162 163 164 165 

Sorghum Transportation 

 Rail (Class I) carloads 25,000 34,429 26,109 26,460 26,843 27,010 27,270 27,342 27,614 27,523 27,653 

 Barge bargeloads 571 762 589 599 604 609 614 617 622 624 627 

 Truck truckloads 206,044 312,637 223,672 224,943 232,062 232,196 235,192 234,459 237,764 232,402 234,057 

 Barley Use 231 235 202 202 208 208 208 214 215 215 220 

 Feed & residual mbu 55 60 47 48 53 54 54 60 60 61 66 

 Food, seed, & industrial mbu 156 155 134 134 135 134 134 134 135 134 134 

 Domestic Use mbu 211 215 182 182 188 188 188 194 195 195 200 

 Exports mbu 20 20 20 20 20 20 20 20 20 20 20 

Barley Transportation 

 Rail (Class I) carloads 34,574 35,157 30,289 30,330 31,201 31,261 31,260 32,053 32,194 32,243 32,957 

 Barge bargeloads

 Truck truckloads 118,549 120,659 103,037 103,186 106,339 106,555 106,554 109,423 109,931 110,111 112,695 

1

USDA, World Agricultural Supply and Demand Estimates (WASDE), August 10, 2007.

2

DDGS yield = 17.5 lbs/bushel of corn used in ethanol production.

Marketing year

*

See Transportation Assumptions in the Summary of Transportation Requirements Table 5, Appendix I; USDA Long-term Projections Report, OCE-2007-1, February 2007. 

Units: mg=million gallons; mbu=million bushels; mil. s. tons=million short tons.
USDA Ethanol Transportation Backgrounder, September 2007 20

Table 3: Transportation Requirements Based on a 20-bgy Scenario* and August 10, 2007 WASDE for 2006 and 2007.

 August 17, 2007 Units1 2006 1 2007 1 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S. Ethanol Production mg 5,848 9,350 12,160 13,532 14,624 15,625 16,584 17,480 18,348 19,188 20,000

 Yield g/bu 2.72 2.75 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76

Biodiesel Use mg 500 600 700 755 805 850 880 910 940 970 1,000

Corn Production mbu 10,535 13,054 12,877 13,097 13,564 13,799 14,108 14,338 14,711 14,782 15,464

 Share used for fuel percent 20 26 34 37 39 41 43 44 45 47 47

Grain Use:

 Corn Use mbu 12,690 11,375 13,012 13,262 13,593 13,879 14,158 14,375 14,731 14,802 15,406 

 Feed & residual mbu 5,750 5,750 5,465 5,270 5,163 5,056 4,966 4,869 4,840 4,687 4,771 

 Food, seed, & industrial mbu 3,525 4,790 5,808 6,305 6,703 7,068 7,419 7,745 8,066 8,374 8,684 

 Fuel alcohol use mbu 2,150 3,400 4,406 4,903 5,299 5,661 6,009 6,333 6,648 6,952 7,246 

 Domestic Use (less fuel alcohol use) mbu 7,125 7,140 6,867 6,672 6,567 6,462 6,376 6,281 6,258 6,109 6,209 

 Exports mbu 2,100 2,150 1,739 1,687 1,727 1,755 1,774 1,761 1,824 1,741 1,951 

Corn Transportation 

 Rail (Class I) carloads 811,071 816,686 757,264 735,528 729,674 722,816 716,764 707,235 710,699 690,256 717,156 

 Barge bargeloads 29,914 30,568 25,135 24,394 24,868 25,197 25,404 25,200 26,015 24,874 27,639 

 Truck truckloads 5,292,033 5,304,176 5,094,334 4,949,144 4,873,120 4,796,444 4,733,312 4,663,048 4,647,963 4,535,833 4,614,066

Corn for Alcohol Use Transport.

 Rail (Class I) carloads 12,286 19,429 25,176 28,017 30,277 32,350 34,335 36,190 37,988 39,727 41,408 

 Barge bargeloads

 Truck truckloads 2,315,385 3,661,538 4,744,705 5,280,045 5,706,132 6,096,711 6,470,903 6,820,513 7,159,197 7,486,957 7,803,790

 DDGS Production2 mil. s. tons 19 30 39 43 46 50 53 55 58 61 63 

 Exports mil. s. tons 1.9 3.0 3.9 4.3 4.6 5.0 5.3 5.5 5.8 6.1 6.3 

DDGS Transportation 

 Rail (Class I) carloads 26,338 41,650 53,971 60,061 64,907 69,350 73,607 77,583 81,436 85,164 88,768 

 Barge bargeloads 251 397 514 572 618 660 701 739 776 811 845 

 Truck truckloads 1,023,162 647,000 1,325,837 1,475,429 1,594,493 1,703,635 1,808,197 1,905,890 2,000,530 2,092,118 2,180,652

 Soybean Use mbu 3,041 2,984 2,969 2,859 2,864 2,892 2,900 2,920 2,923 2,974 2,920 

 Crush mbu 1,780 1,800 1,868 1,893 1,909 1,935 1,951 1,970 1,979 2,009 2,000 

 Seed and residual mbu 171 164 142 144 145 145 148 147 149 147 152 

 Domestic Use mbu 1,951 1,964 2,010 2,037 2,054 2,079 2,100 2,117 2,128 2,155 2,152 

 Exports mbu 1,090 1,020 959 822 810 813 800 803 795 819 768 

Soybean Transportation 

 Rail (Class I) carloads 195,074 188,869 185,064 172,980 172,563 173,978 173,745 174,766 174,483 178,041 172,984 

 Barge bargeloads 13,364 12,585 11,928 10,401 10,273 10,320 10,195 10,230 10,148 10,431 9,860 

 Truck truckloads 1,820,451 1,826,637 1,862,831 1,876,680 1,890,727 1,913,147 1,930,578 1,946,413 1,955,087 1,981,343 1,974,803

 Wheat Use mbu 2,050 2,241 2,245 2,264 2,291 2,290 2,308 2,316 2,323 2,333 2,341 

 Food mbu 925 930 936 941 946 951 956 961 966 971 975 

 Seed mbu 81 81 81 79 79 79 79 79 79 79 80 

 Feed & residual mbu 134 180 289 310 314 290 285 270 257 238 234 

 Domestic Use mbu 1,140 1,191 1,305 1,330 1,340 1,320 1,320 1,310 1,302 1,288 1,289 

 Exports mbu 1,050 910 940 934 952 970 987 1,006 1,021 1,045 1,052 

Wheat Transportation 

 Rail (Class I) carloads 315,600 346,740 343,798 346,369 350,695 351,056 354,087 355,852 357,247 359,505 360,807 

 Barge bargeloads 6,240 7,200 6,446 6,404 6,526 6,651 6,769 6,896 6,999 7,167 7,212 

 Truck truckloads 666,374 700,549 758,193 772,057 777,847 767,872 768,930 764,167 760,210 753,692 754,674 

 Sorghum Use 305 445 333 335 345 348 353 357 359 360 358 

 Feed & residual mbu 110 180 123 120 125 125 125 125 125 120 120 

 Food, seed, & industrial mbu 45 65 50 50 50 50 50 50 50 50 50 

 Domestic Use mbu 155 245 173 170 175 175 175 175 175 170 170 

 Exports mbu 150 200 161 165 170 173 178 182 184 190 188 

Sorghum Transportation 

 Rail (Class I) carloads 25,000 34,429 26,986 27,535 28,303 28,771 29,360 29,925 30,275 30,899 30,697 

 Barge bargeloads 571 762 613 630 647 660 677 692 702 723 718 

 Truck truckloads 206,044 312,637 227,212 226,280 232,829 234,028 235,539 236,987 237,885 234,906 234,387 

 Barley Use 231 235 223 218 223 222 222 226 226 225 230 

 Feed & residual mbu 55 60 50 45 50 50 50 55 55 55 60 

 Food, seed, & industrial mbu 156 155 154 153 153 152 152 151 151 150 150 

 Domestic Use mbu 211 215 203 198 203 202 202 206 206 205 210 

 Exports mbu 20 20 20 20 20 20 20 20 20 20 20 

Barley Transportation 

 Rail (Class I) carloads 34,574 35,157 33,477 32,686 33,442 33,318 33,197 33,785 33,833 33,664 34,372 

 Barge bargeloads

 Truck truckloads 118,549 120,659 114,577 111,713 114,452 114,001 113,563 115,692 115,865 115,253 117,816 

1

USDA, World Agricultural Supply and Demand Estimates (WASDE), August 10, 2007.

2

DDGS yield = 17.5 lbs/bushel of corn used in ethanol production.

Marketing year

*

See Transportation Assumptions in the Summary of Transportation Requirements Table 6, Appendix I; USDA Long-term Projections Report, OCE-2007-1, February 2007. 

Units: mg=million gallons; mbu=million bushels; mil. s. tons=million short tons.
USDA Ethanol Transportation Backgrounder, September 2007 21

Table 4: Summary of Transportation Requirements for the Baseline Scenario1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

 Rail (Grain, Ethanol and DDGS) carloads 1,673,775 1,540,947 1,659,951 1,662,955 1,687,186 1,704,991 1,722,921 1,740,590 1,758,209 1,775,935 1,791,879

 Grain 1,395,263 1,441,309 1,406,463 1,395,589 1,412,880 1,425,480 1,438,206 1,452,406 1,466,554 1,480,811 1,493,286

 Corn 823,357 836,114 816,543 814,143 824,243 834,200 842,014 851,900 861,786 872,114 879,786 

 Soybeans 196,731 188,869 187,223 175,389 176,577 178,434 179,760 181,160 183,091 184,977 186,166 

 Wheat 315,600 346,740 344,297 347,657 352,643 353,429 357,014 359,200 361,386 363,571 366,457 

 Sorghum 25,000 34,429 25,429 25,429 25,571 25,571 25,571 25,571 25,571 25,429 25,429 

 Barley 34,574 35,157 32,971 32,971 33,846 33,846 33,846 34,574 34,720 34,720 35,449 

 Ethanol 119,347 190,816 208,163 219,592 225,306 229,592 233,878 236,735 239,592 242,449 245,306 

 DDGS 26,338 41,650 45,325 47,775 49,000 49,919 50,838 51,450 52,063 52,675 53,288 

 Barge bargeloads 51,641 53,392 48,433 47,052 48,291 49,571 50,471 51,414 52,414 53,416 54,297 

 Grain 50,462 51,511 46,382 44,889 46,072 47,310 48,168 49,083 50,055 51,029 51,882 

 Ethanol 1,484 928 1,619 1,708 1,752 1,786 1,819 1,841 1,863 1,886 1,908 

 DDGS 251 397 432 455 467 475 484 490 496 502 508 

 Truck truckloads 11,946,255 14,323,147 14,883,041 15,238,073 15,478,967 15,654,619 15,839,436 15,987,581 16,134,891 16,279,520 16,416,962

 Grain 11,079,956 12,949,360 13,387,100 13,660,946 13,861,247 14,006,455 14,160,827 14,288,675 14,415,689 14,540,021 14,657,166

 Ethanol 219,300 350,625 382,500 403,500 414,000 421,875 429,750 435,000 440,250 445,500 450,750 

 DDGS 1,023,162 647,000 1,113,441 1,173,627 1,203,720 1,226,290 1,248,860 1,263,906 1,278,953 1,293,999 1,309,046

1

Transportation Mode Assumptions, Grain (2000-2004 average): 1Transportation Mode Assumptions--Ethanol, Feedstock, DDGS:

Corn Soybeans Wheat Sorghum Barley Ethanol in 2005 Feedstock (corn) DDGS

Exports Rail 60% 2% 14%

 Rail 30% 34% 60% 48% 67% Barge 10% -- 2%

 Barge 68% 59% 36% 20% -- Truck 30% 98% 86%

 Truck 2% 7% 4% 32% 33% Sources: AAR, Army Corps of Engineers, Commodity Freight Statistics, TSB estimates.

Domestic Capacity (units) Railcar Barge Truck

 Rail 31% 16% 49% 10% 51% Grain (bushels) 3,500 52,500 910

 Barge 2% 3% -- -- -- Ethanol (gallons) 29,400 630,000 8,000

 Truck 67% 81% 50% 90% 48% DDGS (tons) 100 1,500 25

Source: Transportation of U.S. Grains: A Modal Share Analysis, 1978-2004. October 2006, USDA/AMS/TSB

Table 5: Summary of Transportation Requirements for the 15-bgy Scenario1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

 Rail Total carloads 1,673,775 1,539,290 1,647,285 1,689,321 1,737,297 1,775,689 1,812,039 1,844,120 1,874,845 1,904,634 1,932,850

 Grain 1,393,606 1,441,309 1,369,997 1,390,367 1,423,634 1,449,578 1,474,523 1,496,764 1,518,346 1,539,687 1,560,152

 Corn 823,357 836,114 783,462 812,189 839,021 862,219 882,866 900,662 918,501 935,696 952,012 

 Soybeans 195,074 188,869 186,105 174,425 174,901 176,790 177,455 178,989 180,338 182,444 183,100 

 Wheat 315,600 346,740 344,033 346,963 351,669 352,299 355,672 357,719 359,699 361,781 364,430 

 Sorghum 25,000 34,429 26,109 26,460 26,843 27,010 27,270 27,342 27,614 27,523 27,653 

 Barley 34,574 35,157 30,289 30,330 31,201 31,261 31,260 32,053 32,194 32,243 32,957 

 Ethanol 119,347 190,816 227,755 245,551 257,633 267,857 277,224 285,306 292,816 299,755 306,122 

 DDGS 26,338 41,650 49,533 53,403 56,030 58,254 60,291 62,049 63,682 65,191 66,576 

 Barge Total bargeloads 51,520 53,392 47,676 46,229 47,389 48,567 49,403 50,241 51,184 52,120 52,983 

 Grain 50,341 51,511 45,433 43,811 44,852 45,929 46,673 47,431 48,300 49,168 49,968 

 Ethanol 1,484 928 1,771 1,910 2,004 2,083 2,156 2,219 2,277 2,331 2,381 

 DDGS 251 397 472 509 534 555 574 591 606 621 634 

 Truck Total truckloads 11,932,134 14,323,147 15,240,308 16,074,384 16,661,012 17,145,105 17,602,654 17,992,432 18,357,855 18,698,300 19,020,350

 Grain 11,065,835 12,949,360 13,605,004 14,311,304 14,811,184 15,221,865 15,612,155 15,943,906 16,255,405 16,546,029 16,822,361

 Ethanol 219,300 350,625 418,500 451,200 473,400 492,188 509,400 524,250 538,050 550,800 562,500 

 DDGS 1,023,162 647,000 1,216,804 1,311,880 1,376,428 1,431,053 1,481,099 1,524,276 1,564,400 1,601,471 1,635,489

Table 6: Summary of Transportation Requirements for the 20-bgy Scenario1.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

 Rail Total Carloads carloads 1,539,290 1,673,775 1,673,900 1,679,339 1,708,312 1,730,516 1,753,544 1,772,071 1,800,410 1,808,849 1,854,355

 Grain 1,393,606 1,441,309 1,371,766 1,343,115 1,344,955 1,342,289 1,341,488 1,337,753 1,344,525 1,332,093 1,357,424

 Corn 823,357 836,114 782,440 763,545 759,952 755,166 751,099 743,426 748,687 729,983 758,564 

 Soybeans 195,074 188,869 185,064 172,980 172,563 173,978 173,745 174,766 174,483 178,041 172,984 

 Wheat 315,600 346,740 343,798 346,369 350,695 351,056 354,087 355,852 357,247 359,505 360,807 

 Sorghum 25,000 34,429 26,986 27,535 28,303 28,771 29,360 29,925 30,275 30,899 30,697 

 Barley 34,574 35,157 33,477 32,686 33,442 33,318 33,197 33,785 33,833 33,664 34,372 

 Ethanol 119,347 190,816 248,163 276,163 298,449 318,878 338,449 356,735 374,449 391,592 408,163 

 DDGS 26,338 41,650 53,971 60,061 64,907 69,350 73,607 77,583 81,436 85,164 88,768 

 Barge Total Bargeloads bargeloads 51,520 53,392 47,080 45,122 45,873 46,628 47,079 47,272 48,328 47,862 50,293 

 Grain 50,341 51,511 44,635 42,402 42,933 43,488 43,746 43,758 44,640 44,006 46,273 

 Ethanol 1,484 928 1,930 2,148 2,321 2,480 2,632 2,775 2,912 3,046 3,175 

 DDGS 251 397 514 572 618 660 701 739 776 811 845 

 Truck Total Truckloads truckloads 11,932,134 14,323,147 15,909,526 16,674,227 17,332,492 17,915,410 18,491,119 19,014,100 19,565,318 20,011,768 20,610,841

 Grain 11,065,835 12,949,360 14,127,689 14,691,348 15,189,599 15,625,838 16,061,022 16,452,710 16,876,738 17,200,100 17,680,189

 Ethanol 219,300 350,625 456,000 507,450 548,400 585,938 621,900 655,500 688,050 719,550 750,000 

 DDGS 1,023,162 647,000 1,325,837 1,475,429 1,594,493 1,703,635 1,808,197 1,905,890 2,000,530 2,092,118 2,180,652
USDA Ethanol Transportation Backgrounder, September 2007 22

Appendix II – Illustrations

1. Rail and Truck Ethanol Distribution System 

Source: National Bioenergy Center, National Renewable Energy Laboratory; E95 is Fuel Ethanol 

(200-proof alcohol denatured with 5 percent natural gasoline.) 
USDA Ethanol Transportation Backgrounder, September 2007 23

2. Flex-Fuel Vehicles in the United States 

Alabama 2 Mississippi 1

Alaska 0 Missouri 59

Arizona 9 New Jersey 0

Arkansas 4 New Mexico 6

California 4 New York 6

Colorado 26 North Carolina 9

Connecticut 0 North Dakota 24

Delaware 1 Ohio 34

DC 3 Oklahoma 1

Florida 10 Oregon 5

Georgia 9 Pennsylvania 11

Hawaii 0 Rhode Island 0

Idaho 3 South Carolina 46

Illinois 146 South Dakota 58

Indiana 84 Tennessee 9

Iowa 68 Texas 29

Kansas 15 Utah 4

Kentucky 7 Vermont 0

Louisiana 0 Virginia 5

Maine 0 Washington 6

Maryland 7 West Virginia 2

Massachusetts 0 Wisconsin 60

Michigan 44 Wyoming 6

Minnesota 306 U.S. Total 1166

E85 Stations by State, as of July 31, 2007

STATE E85 STATE E85

Source: State data as of July 31, 2007: 

http://www.eere.energy.gov/afdc/infrastructure/station_maps.h
USDA Ethanol Transportation Backgrounder, September 2007 24

3. Freight Specs by Mode 

a) Rail Tank Car – typically 30,000 gallons, AAR type T108. 

Example: 

Source: Freight Cars Journal 

b) Tanker Truck – 8,000 gallons 
USDA Ethanol Transportation Backgrounder, September 2007 25

c) Tank barge – 1 million gallons (23,900 barrels) 

Inland Liquid Cargo Tank Barge

Kirby Corp. – 2-barge tow capacity 60,000 barrels, 2.52 million gallons, 1 barge – 1.26 mill. gal. 

http://www.kirbycorp.com/corp/history.cfm 

d) 5161-Cubic Foot Covered Hopper

This 286,000 lb. gross rail load covered hopper has standard 24-inch continuous trough hatch 

and standard 30-inch by 30-inch discharge outlets. A wide assortment of options is available 

including a variety of hatch and gate configurations as well as interior lining if required. 

http://www.trinityrail.com/railcars/hopper/pdfs/hopper_5161.pdf
USDA Ethanol Transportation Backgrounder, September 2007 26

4. a. Ethanol Cargo Capacity Comparison 
USDA Ethanol Transportation Backgrounder, September 2007 27

4. b. Grain Cargo Capacity Comparison 
USDA Ethanol Transportation Backgrounder, September 2007 28

Resources and Links 

Grain Transportation Report – Weekly developments affecting the transport of grain in the domestic 

and international marketplace. www.ams.usda.gov/tmdtsb/grain/

National Weekly Ethanol Summary – Weekly spot prices for ethanol and distillers’ grains. 

http://www.ams.usda.gov/lsmnpubs/PDF_Weekly/Ethanol.pdf (PDF)

Market News Reports Portal – Searchable database of prices for various commodities at many 

locations. http://marketnews.usda.gov/portal/lg

USDA Baseline Projections – Long-term projections of many commodities.

http://www.usda.gov/oce/commodity/ag_baseline.htm

USDA Economic Research Service Briefing Room – In-depth analyses of economic issues in 

agriculture. http://www.ers.usda.gov/Briefing/

USDA Economic Research Service – Ethanol Expansion in the United States. How Will the 

Agricultural Sector Adjust? May 2007. 

http://www.ers.usda.gov/Publications/FDS/2007/05May/FDS07D01/fds07D01.pdf (PDF)

Feed Grains Backgrounder – An overview of the current and projected situation for U.S. feed grains. 

http://www.ers.usda.gov/Publications/FDS/2007/03Mar/FDS07C01/ 

Feed Grains Database – A queriable database that contains monthly, quarterly, and annual data on 

prices, supply, and use of corn and other feed grains, including data published in the monthly Feed 

Outlook and the annual Feed Yearbook reports. www.ers.usda.gov/data/feedgrains/ 

Ethanol Facts: Food vs. Fuel – the Renewable Fuels Association provides a perspective on the issue. 

http://www.ethanolrfa.org/resource/facts/food/

Review of Transportation Issues and Comparison of Infrastructure Costs for a Renewable Fuels 

Standard – Report from DOE’s Energy Information Administration.

http://www.eia.doe.gov/oiaf/servicerpt/fuel/rfs.html

Alternative Fuels Data Center – A portal to information about alternative fuels and vehicles from DOE. 

http://www.eere.energy.gov/afdc/

Iowa State University CARD – Locations of ethanol plants in the United States

http://www.card.iastate.edu/research/bio/tools/ethanol.aspx

Potential Infrastructure Constraints on Ethanol Production in Iowa – From Iowa State. 

http://www.extension.iastate.edu/ag/GinderPresent.indd.pdf (PDF)

Railroads: BNSF, www.bnsf.com; 

CSX, www.csx.com; 

CN, http://www.cn.ca/productsservices/grain/resource_centre/Ethanol/en_ethanol.shtml

Norfolk Southern Corporation, 

http://www.nscorp.com/nscportal/nscorp/Customers/Industrial%20Products/Agriculture/

Union Pacific, http://www.uprr.com/customers/ag-prod/ethanol.shtml
USDA Ethanol Transportation Backgrounder, September 2007 29

CONTACT INFORMATION 

Author 

 Marina R. Denicoff marina.denicoff@usda.gov (202) 720-8264 

Contributors 

 Johnny Hill johnny.hill@usda.gov (202) 720-4211 

 Nicholas Marathon nick.marathon@usda.gov (202) 690-0331 

 Brian McGregor brian.mcgregor@usda.gov (202) 690-1319 

 Marvin Prater marvin.prater@usda.gov (202) 690-6290 

 April Taylor april.taylor@usda.gov (202) 295-7374 

Acknowledgments 

The author thanks Hosein Shapouri and Harry Baumes, USDA, Office of Energy Policy and 

New Uses; Paul Westcott, Economic Research Service; and Jerry Norton, USDA, World 

Agricultural Outlook Board for providing substantive comments during the review process.

Preferred Citation

U.S. Department of Agriculture, Agricultural Marketing Service. Ethanol Transportation Backgrounder, 

September 2007. Web. <http://dx.doi.org/10.9752/TS029.09-2007>