1

Summary

Since 1994, the lower operating costs of larger railcars (C-114 covered hopper cars) for the shipment of grain have 

encouraged their increased use. Most of these cost savings have accrued to the major railroads, but some of the 

savings have been passed on to shippers. As their use has increased, the amount of grain shipped by smaller railcars 

(C-113 covered hopper cars) has decreased. This shift has prompted changes in the dynamics of railroad economics, 

including the need for track and bridge upgrades in order to handle the heavier cars and the costs associated with 

those upgrades. Short-line and regional railroads are at a disadvantage compared to major railroads because 

they have fewer financial resources available for rail line upgrading. Nevertheless, they have been systematically 

upgrading their track for the movement of C-114 hopper cars. Some researchers have indicated that State subsidies to 

assist in upgrading rail branch lines could be used to bring more of the savings from larger cars to more farmers and to 

reduce maintenance costs on rural roads caused by farmers trucking grain to main-line elevators. 

The Shift to Larger Railcars for the Shipment of Grain

Agricultural 

Marketing 

Service

August 2013

Marvin Prater • Daniel O’Neil, Jr.

The Shift to Larger Grain Cars1

The use of larger hopper cars results in reduced costs for 

railroads. C-114 hopper cars, which weigh 286,000 pounds 

when loaded, can hold 10 percent more grain than C-113 

hopper cars, which weigh 263,000 pounds when loaded. 

This means that fewer cars are needed to move the same 

volume of grain, resulting in labor efficiencies. Other effects 

of the increased volumes handled by C-114 railcars include 

a reduction in the number of railcars in use, which results 

in reduced rail congestion and fewer cars requiring repair 

and eventual replacement. The better load-to-tare ratio 

also makes the larger cars more efficient in fuel usage and 

locomotive power than smaller railcars.2

1 The findings and data presented in this paper come from a USDA analysis of the 

Surface Transportation Board’s Confidential Waybill Sample. Total tonnage shipped 

by C-113 and C-114 covered hopper cars were aggregated for each year from 1994-

2011. 

2 Babcock, Michael W. and James Sanderson, The Impact of Jumbo Covered 

Hopper Cars on Kansas Shortline Railroads, K-Tran report No. KSU-04-3, September 

2004, and Bitzan, John D. and Denver D. Tolliver, Heavier Loading Rail Cars, MountainPlains Consortium Report No. 01-127.4, October 2001.

C-114 covered hopper car

C-113 covered hopper car
2

0

20

40

60

80

100

120

140

160

180

199419951996199719981999200020012002200320042005200620072008200920102011

Ton Originated (Millions)

C-113 C-114

Figure 1. Grain Tonnages Moved by Type of Covered Hopper Railcar

Figure 2. Percentage of Grain Moved by Type of Covered Hopper Railcar

0

10

20

30

40

50

60

70

80

90

100

199419951996199719981999200020012002200320042005200620072008200920102011

Percent Originated

C-113 C-114
3

The shift to C-114 covered hoppers has occurred quite rapidly. In 1994, 3.3 million tons (2.4 percent) of grain and 

oilseeds moved in C-114 railcars (figs. 1, 2). By 2011, 100 million tons (68.6 percent) moved in the larger railcars. Over 

the entire period, tonnages shipped using larger railcars increased steadily, while use of C-113 hopper cars decreased. 

Grain tonnages and percentages hauled in the larger cars have been increasing since 1994, with only a small 

exception in 2003 and 2004. The dip in C-114 tonnages during 2003 and 2004 shown in figure 1 is probably due to 

rail congestion. Rail congestion affects the quickly turning C-114 cars, which are normally used in shuttle movements, 

more than C-113 cars, which are used in carload movements.

Cost of Upgrading Rail Lines

The shift to larger railcars has a greater impact on the short-line and regional railroads serving grain producers than it 

does on the major railroads because they have fewer financial resources to upgrade their rail lines. In 2011, short-line 

and regional railroads operated 43,131 miles of the U.S. rail network and had $4 billion in revenue.3 In contrast, major 

railroads operated more than 95,387 miles and had revenues of $65 billion during 2011. The major railroads averaged 

$681,434 in revenue per route mile in 2010, but short-line and regional railroads averaged only $92,741.4 

The cost of upgrading the track of smaller railroads to handle larger railcars varies. In a study completed in 2000, the 

cost of upgrading railroad tracks and bridges was estimated to be $6.8 billion—more than $137,000 per mile.5 In 

2001, a Washington State study estimated that upgrading branch lines to handle heavier railcars would cost $250,000 

to $300,000 per mile, exclusive of bridge rehabilitation costs.6 A 1998 Iowa report concluded it would cost $250,000 

per mile to upgrade branch lines to handle larger railcars.7 However, many short lines concluded that the use of 

C-114 hopper cars would result in savings larger than the costs of upgrading the lines by reducing the cost of crew 

and equipment. In 2002, 18,091 route miles, or 39 percent, of short-line route miles were capable of handling C-114 

hoppers, but by 2010, 30,009 route miles, or 57 percent, of short-line route miles were able to handle them.8 

Some researchers and analysts have suggested that movement to heavier rail hopper cars has a public policy 

dimension. It has been suggested that in order to bring the savings from larger cars to more farmers and to reduce 

the costs of rural road maintenance caused by increased farmer trucking of grain, States should consider subsidizing 

the upgrading of rural branch lines. They argue that public subsidies could be justified if they reduce total costs, both 

public and private. 

Conclusion

Since 1994, the use of C-114 hopper cars has increased steadily while the use of C-113 hopper cars has declined. 

Although several older studies concluded that the shift to larger railcars would result in the abandonment of some 

route miles by short-line railroads,9 this has not happened. In fact, the ability of short-line railroads and bridges to 

handle larger C-114 hopper cars has gradually increased. Although the costs of upgrades are high, the possible 

benefits are even greater. These upgrades are occurring at a slower pace among short-line railroads, but they are 

nonetheless occurring. Some researchers have stated that public subsidies may be needed to assist in upgrading rail 

branch lines.

3 AAR, Railroad Facts, 2012 edition.

4 Ibid.

5 Zeta-Tech Associates, Inc., An Estimation of the Investment in Track and Structures Needed to Handle 286,000 lb. Rail Cars,” May 26, 2000.

6 Casavant, Ken, and Denver Tolliver, for the Washington State Department of Transportation, Impact of Heavy Axle Loads on Light-Density Lines in the State of 

Washington, March 2001.

7 Iowa Department of Transportation, 286,000# Upgrading Report for Iowa Branchlines, July 1998.

8 American Short Line & Regional Railroad Association, Short Line and Regional Railroad Facts and Figures, 2012 edition.

9 Martens, Bobby Joel, An Economic Analysis of Heavy Axle Loads: The Effects on Short Line Railroads and the Tradeoffs Associated With Heavy Cars, a thesis, North 

Dakota State University, March 1999 and Casavant, Ken and Denver Tolliver, op cit.
4

Page 1 photo credits (top to bottom):

•	 ©Radford C. Bean

•	 ©Hiddenimages 

•	 ©Hiddenimages 

Preferred citation: 

U.S. Department of Agriculture, Agricultural Marketing Service. The Shift to Larger Railcars for the Shipment of Grain. 

August 2013. Web. <http://dx.doi.org/10.9752/TS087.08-2013>

For more information, contact Marvin.Prater@ams.usda.gov.

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