Norfolk Southern to Spend $2 Billion on Capital Projects in 2013
Jan 28th 2013 3:31PM
Updated Jan 28th 2013 4:25PM
On Monday, railroad operator Norfolk Southern 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.
The article Norfolk Southern to Spend $2 Billion on Capital Projects in 2013 originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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