The Railyard is a special industrial center for building transport capacity out of lumber and steel located near the top right of the screen.
As your mills, factories, and population expand you will see the need for more resources each turn. Transport capacity is the amount of resources you can bring to industry in one turn. From the transport screen you control how your transport capacity is used, but to increase the overall amount you must use the railyard.
The railyard is limited only by the amount of labor lumber, and steel you want to dedicate to increasing transport. Otherwise, it functions just like other industries.