Norfolk Southern Announces Planned 2007 Capital Spending
NORFOLK, VA - Norfolk Southern Corporation (NYSE: NSC) plans to spend
$1.34 billion in 2007 for capital improvements to its railroad
operations and subsidiaries.
“Our capital budget reflects our commitment to maintain a safe and
vibrant rail system to meet the continuing strong demand we
anticipate in 2007 and beyond,” said Chief Executive Officer Wick
Moorman. “We will continue to invest in the infrastructure, equipment
and technology necessary to provide the best possible service to our
customers.”
The anticipated spending includes $884 million for roadway projects,
$401 million for equipment and $55 million for small projects and
real estate.
In roadway improvements, the largest expenditure will be $610 million
for rail, crosstie, ballast and bridge programs, including $73
million in infrastructure investments for increased capacity. In
addition, $47 million is provided for communications, signal and
electrical projects; $41 million for maintenance of way equipment;
and $16 million for environmental projects and public improvements
such as grade crossing separations and crossing signal upgrades.
Equipment spending includes $321 million to purchase 53 six-axle
locomotives and upgrade existing locomotives. NS will invest in the
purchase of 1,300 new higher-capacity coal cars as part of a
multiyear program to replace the existing coal car fleet. Other
equipment spending includes purchasing 739 freight cars as their
leases expire, certifying and rebuilding 388 multilevel automobile
racks, and adding supplemental restraints to multilevel racks. In
addition, equipment spending includes $60 million for projects
related to computers, systems and information technology, which will
enhance safety and improve operating efficiency and equipment
utilization.
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