Norfolk Southern to Spend $2 Billion on Capital Projects in 2013

On Monday, railroad operator Norfolk Southern (NYSE: NSC  ) announced an ambitious plan for investing in its own infrastructure. Over the course of 2013, the company intends to spend $2 billion making capital improvements to "maintain the safety and quality of our existing franchise, improve service quality and performance, achieve operational efficiencies and productivity improvements, and support business growth," said CEO Wick Moorman in a statement.

In the press release, Norfolk Southern described about 90% of this investment in detail:

  • $831 million to replace and maintain rails, crossties, ballast, and bridges.
  • $420 million to purchase new or overhaul existing locomotives and railroad cars.
  • $229 million for "the continued implementation of positive train control," which aims to increase safety.
  • $203 million for investments in facilities and terminals.
  • $84 million to "increase main line capacity, accommodate traffic growth, and provide" matching funds for "public-private partnership investments such as CREATE in Chicago and the Crescent Corridor."
  • $57 million for new and upgraded systems and computers.

In all, the $2 billion figure represents an 11% decline from last year's capital expenditures, or a 7.4% decline from 2011 levels.

link


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 28, 2013, at 4:04 PM, jdmeck wrote:

    Positive Train Control is a big waste of money on a technology that is yet to be proven. Thank You Uncle Sam!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2219754, ~/Articles/ArticleHandler.aspx, 12/22/2014 5:20:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement