NORFOLK
Norfolk Southern Corp., the country’s fourth largest railroad, said today it plans to invest $1.43 billion this year on such capital expenses as maintaining its track and buying more rail cars.
That represents an increase of $84 million, or 6 percent, over 2007 expenditures, said Debbie H. Butler, the Norfolk-based railroad’s executive vice president of planning, on a conference call with analysts and reporters.
About 71 percent of the 2008 capital expenditures will be spent on maintenance, such as repairing and replacing track and bridges, she said. The remainder will be used to grow the railroad and increase its productivity.
Butler said that this year, Norfolk Southern plans include:
- Spending $264 million, or 19 percent of the budgeted capital budget, on locomotive and freight car acquisitions and improvements. Those include buying 15 new locomotives, building 163 new multi-level rail cars for moving vehicles and buying out the leases on 321 other freight cars.
- Investing $143 million, or 10 percent of the budget, in facilities and terminals.
- Spending $66 million, or 5 percent of the total, on computers and technology.
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