The CO₂ Rail Boom Is Coming. Can you Keep Pace?

The Global Rise of Rail Tank Cars

This article does not talk about the increasing need for specially designed Rail Tank Car (RTC) Loading Systems, especially in emerging industries. But by the time you reach the end, you’ll understand why special systems are required and why you need to talk to experts who understand your problems.
Based on industry data from regional rail authorities and rolling stock market reports, the estimated number of RTCs worldwide is approximately 900,000 to 1,000,000 units.
This figure represents specialised railway rolling stock designed to transport liquid and gas commodities (such as crude oil, refined petroleum products, chemicals, and LPG). It is distinct from the global fleet of ISO tank containers (intermodal tanks moved on flatcars), which numbers around 800,000 units.
The predominant concentration of Rail Tank Cars is in North America (45%) and Russia, with its associated states (25%). Europe, Asia, and ROW account for a surprisingly small proportion.

How Rail Tank Cars Are Used Today

So, how are they being used? Unsurprisingly, the predominant number is 45% for transporting refined and unrefined fuels, 32% for chemicals, 20% for liquified gases and 10% for food and agriculture.
Let’s look at how those different liquids generally behave, and then we can start to see how the specialisation of techniques for filling and emptying those Rail Tank Cars takes place.

Fuel Rail Tank Cars

Fuel Rail Tank Cars occupy quite a wide range of factors that affect design. Gasoline is quite different from Crude Oil. Crude Oil varies in characteristics depending on where it is extracted, from a liquid that behaves like tar to a light oil. Does it need to be heated to move? Does it warrant the recovery of displaced vapours? How long will it remain in the railcar, and what will that do to the liquid? Will it layer as various viscosities settle into their layers? In North America, while “Crude-by-Rail” has fluctuated, the transport of Ethanol and refined fuels (Diesel/Gasoline) remains a massive, steady baseline. There are roughly 100,000–110,000 “Class 3 Flammable Liquid” cars in North America alone. However, if we examine the trend, it is flat to declining. New pipeline capacity generally reduces RTC share for crude, but Biofuels should be a growing sub-segment, subject to consistent government policy.

Chemical Rail Tank Cars.

A wide-sweeping coverall description for Acids (Sulfuric, Hydrochloric) can include Caustic Soda, Molten Sulphur, Fertilisers, etc. Each carries its own biohazard-specific dangers and handling requirements. These RTCs are often highly specialised (lined with rubber, stainless steel, or heated) to prevent corrosion or solidification. The trend shows steady growth. Chemical production correlates closely with GDP. The shift to specialised, high-safety tank cars (toxic, inhalation hazard) increases the value of this fleet even if unit counts grow slowly. The main factor affecting this is the uncertainty that has afflicted Western Chemical plants in recent times.

Liquefied Gas Rail Tank Cars

An interesting sector which will be discussed in more detail later. C2,3,4,5 categories: LPG (Propane/Butane), Ammonia, Chlorine, Vinyl Chloride. Increasingly, Liquid CO2 faces a unique set of challenges. These are Pressurised Tank Cars (unlike the “General Service” RTCs used for fuels/chemicals), they carry gases that keep liquid under pressure (LPG, Ammonia, Chlorine). The global trade in LNG and LPG is expanding. While LNG by rail is still a niche regulatory topic in the US, LPG transport remains a critical rail function. Global clean air initiatives to reduce charcoal/wood burning are creating LPG projects in regions like Africa, a vast area that requires massive distribution infrastructure.

Food and Agriculture Rail Tank Cars

Corn syrup, vegetable oils, tallow and molasses may not be transported at food-grade quality, but they still require careful handling to prevent contamination and maintain product integrity. The rail fleet size in this sector remains relatively static, and the liquids are straightforward to handle and continue to move in bulk by rail. Whilst unlikely to ever be replaced by pipelines, the onward bulk transport of these liquids is better aligned with road, where distribution is to users who are often not located near a rail terminal and whose usage volumes do not justify full train consignments.

Where Is the Real Growth Coming From?

The emerging market, at least in Europe, is being ramped up to meet the emerging Carbon Capture and Storage (CCS) projects. The market for Liquid CO₂ (LCO₂) rail tank cars in Europe is currently small and specialised, but is on the verge of a massive, structurally driven expansion. The current European fleet of dedicated LCO₂ RTCs is estimated to be in the low-to-mid hundreds (approx. 300–500 units). This existing fleet serves the industrial gas and food & beverage markets. It transports food-grade CO₂ (for carbonating drinks) and industrial CO₂ (for chemical processes) from production sites to bottling plants or industrial hubs.

The market is now pivoting from “product delivery” (food/chemicals) to “waste removal” (Carbon Capture and Storage). This shift will require a fleet increase of several orders of magnitude, likely rising to thousands of rail cars by 2030–2035. While pipelines and ships will handle the bulk of massive CO₂ volumes (e.g., from coastal clusters), rail is viewed as the essential “flexible connector” for inland emitters (waste-to-energy plants, cement kilns, lime producers) that are too far from ports for pipelines to be economic. Even if rail captures only 5–10% of the projected 50 Mtpa CCS market, that equates to 2.5–5 million tonnes moved by rail annually. Moving 2.5 million tonnes/year would require roughly 50,000 rail carloads (at ~50t payload). Assuming a weekly turnaround, this single slice of the market would require a fleet of ~1,000 dedicated new RTCs, effectively tripling or quadrupling the current fleet size within 5–7 years.

The Coming Shortage of CO₂ Rail Tank Cars

That said, the time it takes for a railcar manufacturer to start design, subject to prospective demand from lessors, obtain approvals, and manufacture new railcars is about 2 years. This means that demand for Liquid CO2 rail cars will very quickly outstrip supply.

Will Intermodal Containers Fill the Gap?

The CCS projects in Europe alone are moving at a fast pace right now (while EU funding is in place). So, what will the industry do to ensure rail infrastructure is in place in a timely fashion? Maybe the answer is in the method of rail transport? The use of intermodal containers, filled at source, loaded onto flatbed rail wagons, and then transported to the destination, could be a solution. The containers would act as storage capacity at source and destination, but would occupy more space than is convenient at most plants and ports.

Why Infrastructure – Not Rolling Stock – Is the Bottleneck

There you have it. One Million Rail Tank Cars that need to be filled and emptied, safely, repeatedly and efficiently. Most of them will have a hole in the top and a valved outlet at the bottom. Very few will have the sophistication of controls and level gauges. They are literally a barrel on wheels.

The Real Safety & Environmental Challenges

Then there are the environmental and safety needs.

Can the liquid be splash-loaded? What are the consequences of splash? Foaming / static generation / entrained air?
Must the displaced vapours be collected and delivered to a safe place? Increasingly, the answer is “Yes”.
Is the RTC being filled/emptied under pressure?
How are you making rail tanker top operations as safe as they can be? A clue to the correct answer … does not contain the words “harness and wire”.
How are you measuring the loaded/unloaded liquid? Is it a custody transfer? If you are injecting a gaseous version of the liquid to force it out, do you need to measure that gaseous mass to get to a net unloaded amount?

CO₂ Transfer – A Special Case with Higher Risk

Specifically, regarding CO2 transfer, what measures are you implementing to prevent criticality? There isn’t enough time to demonstrate how Carbis Loadtec has answers to all these questions – but we do!

Conclusion: Bridging the Gap Between Simple Rolling Stock and Complex Physics

With a global fleet of nearly one million rail tank cars, the logistics of liquid transfer are vast, yet the hardware remains surprisingly basic. These rail cars are essentially “barrels on wheels” – often lacking sophisticated onboard controls or gauges – yet they are tasked with transporting everything from volatile fuels and corrosive chemicals to high-pressure liquid CO₂. As the industry pivots toward complex new sectors like Carbon Capture and Storage (CCS), the margin for error is vanishing.

The disconnect between a simple railcar and a hazardous liquid creates a critical reliance on your loading infrastructure. Whether it is managing displaced toxic vapours, preventing static generation during splash loading, or ensuring custody-transfer accuracy under pressure, the sophistication must exist outside the railcar, on your site.

The Carbis Loadtec Advantage

Navigating these variables requires more than generic equipment; it demands the foresight of a subject matter expert. Partnering with Carbis Loadtec bridges the gap between operational risk and total safety assurance.

Decades of Specialised Engineering

We understand that a “one-size-fits-all” approach fails when handling a range of viscosities, from tar-like crude to cryogenic CO₂.

Safety Beyond the “Harness and Wire”

We move beyond basic fall protection to design rail tanker-top operations that eliminate risk rather than just mitigating it.

Future-Proofing Your Terminals

Whether you are preparing for the 50 million-tonne CCS boom or optimising for traditional chemicals, we deliver systems ready for the next decade of regulatory demands.

Total Process Integrity

From preventing foaming and static to managing complex vapour recovery streams, our designs ensure efficiency without compromising environmental compliance.