Highlights • Rail transportation costs for biomass and biofuel are estimated using the rail waybill data. • Unit train shipments are more cost efficient as compared to single and multiple car shipments. • Single car shipments are $3.6/ton–$6.68/ton more expensive than multiple car shipments. • Multiple car shipments are $8.9/ton–$17.15/ton more expensive than unit train shipments. • The variable unit cost for shipments to West is $0.9/ton–$4.3/ton smaller than to East USA.

Abstract This article analyzes rail transportation costs of products that have similar physical properties as densified biomass and biofuel. The results of this cost analysis are useful to understand the relationship and quantify the impact of a number of factors on rail transportation costs of denisfied biomass and biofuel. These results will be beneficial and help evaluate the economic feasibility of high-volume and long-haul transportation of biomass and biofuel. High-volume and long-haul rail transportation of biomass is a viable transportation option for biofuel plants, and for coal plants which consider biomass co-firing. Using rail optimizes costs, and optimizes greenhouse gas (GHG) emissions due to transportation. Increasing bioenergy production would consequently result in lower GHG emissions due to displacing fossil fuels. To estimate rail transportation costs we use the carload waybill data, provided by Department of Transportation’s Surface Transportation Board for products such as grain and liquid type commodities for 2009 and 2011. We used regression analysis to quantify the relationship between variable transportation unit cost ($/ton) and car type, shipment size, rail movement type, commodity type, etc. The results indicate that: (a) transportation costs for liquid is $2.26/ton–$5.45/ton higher than grain type commodity; (b) transportation costs in 2011 were $1.68/ton–$5.59/ton higher than 2009; (c) transportation costs for single car shipments are $3.6/ton–$6.68/ton higher than transportation costs for multiple car shipments of grains; (d) transportation costs for multiple car shipments are $8.9/ton and $17.15/ton higher than transportation costs for unit train shipments of grains.