(Reuters circulated the following article by Nick Carey on October 25.)
CHICAGO — U.S. railroad Norfolk Southern Corp. should invest “around” 10 percent more on infrastructure in 2007 than the $1.2 billion it expects to spend in 2006, the company’s top executive said on Wednesday.
“I want to give myself some wiggle room on either side, so our capital expenditure will be around the 10 percent mark,” Chief Executive Officer Wick Moorman said in a telephone interview.
The CEO spoke to Reuters after Norfolk, Virginia-based Norfolk Southern reported third-quarter results that came in well above expectations.
Moorman said he sees few signs the U.S. economy is slowing, other than some softness in the construction industry, which affects some commodities such as lumber hauled by railroads like Norfolk Southern, plus in the automotive sector.
Although fuel prices have fallen over the past three months, Moorman said U.S. railroads should not lose too much market share to the trucking industry because of the country’s growing truck driver shortage.
“We may see some pressure from truck companies, but lower fuel prices do not resolve the driver shortage problem,” he said.