(The following article by Christopher Dinsmore was posted on the Virginian-Pilot website on December 11.)
NORFOLK, Va. — Norfolk Southern Corp. announced Wednesday that it plans to spend $810 million on capital improvements next year.
The budget includes $517 million for roadway projects and $258 million for equipment.
“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 David R. Goode, the Norfolk-based railroad?s chairman, president and chief executive officer.
The No. 4 U.S. railroad operates a 21,500-mile system spanning 22 states, Washington, D.C., and Ontario, Canada.
Its 2004 capital improvement budget is 1.5 percent more than the railroad?s 2003 figure of $798 million.
The largest expenditure will be $384 million for roadway improvements, including rail, crosstie, ballast and bridges. Roadway spending also includes $29 million for communications, signal and electrical projects; $19 million for maintenance of way equipment; and $16 million for environmental projects and other public improvements such as grade crossing separations and upgrades to crossing signals.
Norfolk Southern also plans to spend $178 million to buy 100 new six-axle locomotives, to upgrade existing locomotives and improve and expand its fleet of rack cars for carrying automobiles. Another $42 million is to be spent on computers, systems and information technology.
The capital budget also includes $64 million for business and industrial development initiatives.
Those include spending for increased track capacity and access to coal receivers, bulk transfer facilities, and automobile plants and distribution centers. It also includes investments in intermodal terminals and equipment.
No information was available about projects in either Hampton Roads or Virginia, said Susan Terpay, a railroad spokeswoman.
Norfolk Southern shares rose 8 cents to close at $22.70 a share in trading on the New York Stock Exchange.