(NS issued the following news release on December 10.)
NORFOLK, Va. — Norfolk Southern Corporation plans to spend $810 million in 2004 for capital improvements to its railroad operations and subsidiaries.
“Our capital spending budget reflects our commitment to providing the highest levels of service and safety for our customers and to utilizing our equipment and facilities efficiently,” said Norfolk Southern Chairman, President and CEO David R. Goode.
The anticipated spending includes $517 million for roadway projects and $258 million for equipment.
In roadway improvements, the largest expenditure will be $384 million for rail, crosstie, ballast and bridge programs. In addition, $29 million is provided for communications, signal and electrical projects, $19 million for maintenance of way equipment and $16 million for environmental projects and public improvements such as grade crossing separations and crossing signal upgrades.
Equipment spending includes $178 million to purchase 100 six-axle locomotives, upgrade existing locomotives, certify and rebuild 390 multi-level automobile racks and purchase 212 bi-level racks at the end of their lease. Equipment spending also includes $42 million for projects related to computers, systems and information technology.
Business and industrial development initiatives total $64 million and include roadway and equipment spending for increased track capacity and access to coal receivers, bulk transfer facilities, and vehicle production and distribution facilities; investments in intermodal terminals and equipment to add capacity to the intermodal network; and additional investments in Norfolk Southern’s Triple Crown Services and TransWorks subsidiaries.
Norfolk Southern Corporation is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates 21,500 route miles in 22 states, the District of Columbia and Ontario, serving every major container port in the eastern United States and providing superior connections to western rail carriers. NS operates the most extensive intermodal network in the East and is the nation’s largest rail carrier of automotive parts and finished vehicles. The corporation’s Triple Crown Services subsidiary offers high quality, retail, door-to-door intermodal service, while its TransWorks subsidiary provides comprehensive and automated transportation management solutions.