NORFOLK, Va. – Norfolk Southern Corporation plans to spend $1.146 billion in 2006 for capital improvements to its railroad operations and subsidiaries.
"Continuing strong demand for rail transportation is driving the need for additional investment in Norfolk Southern’s rail network," said CEO Wick Moorman. "Our 2006 capital program ensures that our network and assets continue to be well maintained and also provides for increased capacity in terms of infrastructure, locomotives and cars, and new technology. These investments will enable Norfolk Southern to maintain its safe and reliable operations while providing for further improvements in customer service and capacity for continuing growth."
The anticipated spending includes $735 million for roadway projects, $358 million for equipment and $53 million for small projects and real estate.
In roadway improvements, the largest expenditure will be $484 million for rail, crosstie, ballast and bridge programs. In addition, $37 million is provided for communications, signal and electrical projects; $35 million for maintenance of way equipment; $29 million for modifications to a new data center located in Tucker, Ga., and $15 million for environmental projects and public improvements such as grade crossing separations and crossing signal upgrades.
Equipment spending includes $305 million to purchase 138 six-axle locomotives, upgrade existing locomotives, certify and rebuild 225 multilevel automobile racks and add supplemental restraints to multilevel racks. Equipment spending also includes $35 million for projects related to computers, systems and information technology, which will improve operations efficiency and equipment utilization.
Business development initiatives total $103 million and include investments in intermodal terminals and equipment to add capacity to the intermodal network, increased capacity and access to coal receivers, bulk transfer facilities and vehicle production and distribution facilities.
— PRNewswire-First Call