(The Associated Press circulated the following article on December 2.)
NORFOLK, Va. — Railroad operator Norfolk Southern Corp. reported Thursday that it intends to spend $938 million in 2005 for capital improvements to its operations.
The company said it plans to spend $671 million on roadway projects, which includes $438 million for rail, crosstie, ballast and bridge programs.
Norfolk Southern also plans to spend $225 million for equipment, including $154 million to purchase 52 six-axle locomotives, upgrade existing locomotives, and rebuild other equipment.
“Our planned 2005 capital spending budget will help the company improve service levels and handle business growth by increasing capacity, improving efficiency and ensuring safety of operations,” said Norfolk Southern chairman and chief executive David R. Goode in a statement.
Shares of Norfolk Southern fell 27 cents, or less than 1 percent to $35.23 in midday trading on the New York Stock Exchange.