NS budgets $810 million for 2004 capital spending - Rail Update - Norfolk Southern Corp - Brief Article

Railway Age, Jan, 2004

Norfolk Southern Corp. plans to invest $810 million in capital improvements in 2004 for its railroad and other subsidiaries. Spending in 2003 was just under $800 million. The new budget includes $258 million for equipment and $517 million for roadway projects.

The biggest item in the equipment budget is the purchase of 100 new six-axle locomotives. Equipment plans also include upgrading existing locomotives, rebuilding 390 multilevel autoracks, and purchase of 212 bilevel racks at the end of their lease. About $42 million will go for projects related to computers, systems, and information technology.

The roadway budget includes $384 million for rail, crosstie, ballast, and bridge programs; $29 million for communications, signal, and electrical projects; $19 million for m/w equipment; and $16 million for environmental improvements and public improvements such as grade crossing separations and crossing signal upgrades.

Business and industrial development initiatives are allotted $64 million. They include roadway and equipment spending for increased track capacity and access to coal receivers, bulk transfer facilities, mad vehicle production and distribution facilities; investments in intermodal terminals and equipment, and additional investment in Triple Crown Services and TransWorks subsidiaries.