AAR: Class I railroads to invest $8 billion for infrastructure in 2006

AAR: Class I railroads to invest $8 billion for infrastructure in 2006    North American Class I freight railroads will spend a record $8 billion in 2006 improving infrastructure and maintaining track and equipment, up 21 percent compared to 2005, according to the Association of America Railroads.
   Class I railroads are: BNSF Railway, CSX Transportation, Canadian National Railway, Canadian Pacific Railway, Kansas City Southern Railway, Norfolk Southern Railway and Union Pacific Railroad.
   “Freight railroads are at or near the top of all U.S. industries in terms of required capital intensity. Between 1995 and 2004, railroads put an average of 17.8 percent of their revenues into capital expenditures. This compares with an average of 3.5 percent for manufacturing,” the AAR said.
   “These massive investments by the Class I railroads will translate into jobs, increased productivity for the railroads, additional capacity and better service for our customers,” said Edward Hamberger, president and chief executive offer of the AAR.
   The U.S. Department of Transportation has estimated that freight traffic will grow more than two-thirds by 2020. “A growing economy means more freight traffic on the highways, on the waterways and on the rails. These investments are critical to keep pace,” Hamberger said.