(The following appeared on The Journal of Commerce website on March 9, 2011.)
WASHINGTON, D.C. — The largest U.S. railroads will spend an estimated $12 billion on capital improvements this year, easily outpacing the record capital expenditures of $10.7 billion they made in 2010.
The Association of American Railroads made the projection primarily based on public announcements the Class I U.S. railroads have already made. However, the $12 billion figure goes beyond the sums those carriers have stated so far.
In the West, BNSF Railway has said it plans a capital budget of $3.5 billion this year, while Union Pacific Railroad is projecting $3.2 billion in plant and equipment spending.
The two large Eastern carriers – CSX Transportation and Norfolk Southern Railway – have so far talked about spending a combined $3.74 billion. Kansas City Southern in the nation’s heartland has not given a specific number but it is the smallest of the Class Is.
The AAR projection does not take into account spending by major rail lines in Canada and Mexico.
The full story appears at www.joc.com.