Wednesday, January 30, 2013

Norfolk Southern issues 2013 capital expenditure plan

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NORFOLK Southern will spend $US 2bn on capital improvement projects in 2013, including $US 831m on infrastructure maintenance and replacement of sections of rail, sleepers, ballast and bridges.

The Class 1 railway will also spend $US 420m on new locomotives, and rehabilitate existing units, re-body coal wagons, purchase multi-level wagons to accommodate increasing automotive traffic, and buy intermodal containers and chassis. In addition, the railway will spend $US 203m on facilities and terminals, including the continuing project to expand its Bellevue yard in northern Ohio, construction of a new intermodal terminal in Charlotte, North Carolina, as part of its Crescent Corridor initiative, and complete a new locomotive service facility in Conway, Pennsylvania.

Like CSX and BNSF, NS has committed a significant portion of its budget, some $US 229m, to the continuing implementation of Positive Train Control (PTC). NS also expects to spend $US 84m in infrastructure improvements that will increase mainline capacity and accommodate growing traffic, as well as its match funds for PPP projects such as Chicago's Create initiative and the Crescent Corridor. In addition, $US 57m has been allocated to technology upgrades for systems and IT.

"Our capital plan will maintain the safety and quality of our existing franchise, improve service quality and performance, achieve operational efficiencies, and productivity improvements, and support business growth," says Mr Wick Moorman, NS CEO. "We continue to invest in the infrastructure, equipment, and technology necessary to provide the best possible service to our customers."

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