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
Great news for the NS, and their re-investing in capital improvements will pay for many future dividends years to come.
We met a track crew outside Gallitzin tunnel over the summer, actually just a couple of guys there at the time. The guy not only invited us down to trackside for a better shot, but told us how NS believes in putting money into their infrastructure. I was impressed with how the railroad is making sure their tracks and the like are in top shape to keep the trains running. After all that is where it all begins.
Norfolk Southern Announces Planned 2007 Capital Spending
Equipment spending includes $321 million to purchase 53 six-axle
locomotives and upgrade existing locomotives.
I would be shocked, and pleased, if these were AC locomotives.
If I figure half of that $321Million goes for the 53 new locomotives, is $3Million a pop about right for AC locos these days?
Figure on more of the same DCs…
Glad to see the capital spending creep up a bit. It was about 1/2 what BNSF was spending in recent years and < NS+ 60% CR from the pre-merger days.
Actually, that is about right on it for an AC unit.
Too high, figure about $2.1 million unless its a real Cadillac. Of course the NS doesn’t buy AC motored locos, so your too high.
I missed that the first time I read it.
If you look at the date of the original post, you’ll see this thread was started a few weeks ago. Thanks for trying, though.
I can understand why dsktc would take the time to point out the other thread though. He posted it a day ahead of this thread - the exact same post basically.
Multiple threads on the same news event are inevitable, unfortunately. Even if one spends a lot of time in the forum, it can be easy to miss a post. And not everyone has the time to visit the forum every day, making missed posts even more likely.
I live and work close to a NS Mainline Piedmont Division I think, and they are always working on the tracks or ballast or something. I’ve seen 1 CSX mainline (I think) and the they don’t look as good as the NS line by a long ways.
Gary
Replacing the existing coal car fleet with higher capacity cars is a big deal. This means all the old rebuilt coal cars will be put on sidings and eventually scrapped. It would be hard to believe that all the Coal Hoppers built by TRINITY in the 1990’s would be replaced.
Andrew