Norfolk Southern assigns $1.15 billion for 2006 capital projects
Norfolk Southern Corp., parent of Norfolk Southern Railway Co., plans to spend $1.15 billion in 2006 for capital improvements to its railroad operations and subsidiaries.
The budget includes $735 million for roadway projects, with the largest expenditure being $484 million for rail, crosstie, ballast and bridge programs. Norfolk Southern will spend $358 million for equipment, including the purchase of 138 six-axle locomotives and $53 million for small projects and real estate.
“Continuing strong demand for rail transportation is driving the need for additional investment in Norfolk Southern’s rail network,” said Wick Moorman, Norfolk Southern’s chief executive officer. “Our 2006 capital program ensures that our network and assets continue to be well maintained and also provides for increased capacity in terms of infrastructure, locomotives and cars, and new technology.”