Ethanol returning to U.S. rails

Published: November 25, 2015

oil-train-railSinking lease rates, weak crude prices and tough new safety measures for transporting oil by rail have spurred a resurgence in hauling ethanol on the U.S. rail network, as some train companies convert tank cars to carry more corn-based biofuels.

The trend emerged in the past six months and marks a shift in a years-long boom in transporting crude-by-rail after rail companies, such as Greenbrier and GATX, rushed to increase tank car capacity as the U.S. shale revolution took off five years ago.

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