Norfolk Southern Plan $2bn Spend on Improvements in 2013
Norfolk Southern Corporation has announced new plans to spend $2 billion on capital improvements in 2013.
The improvements are set to cover its rail transportation network with the largest expenditure being $381 million on roadway improvements. Such improvements will include the maintenance and replacement of rail, crossties, ballast and bridges which will allow the safe and reliable operation the railroad to continue.
CEO Wick Moorman said: Our capital plan will maintain the safety and quality of our exisiting franchise, improve service quality and performance, achieve operational efficiencies and productivity improvements, and support business growth,
We continue to invest in the infrastructure, equipment, and technology necessary to provide the best possible service to our customers.
Norfolk Southern are currently one of the best transportation companies in the USA and covers 22 states with 20,000 route miles, serving every major container port in the eastern United States.
$420 million is benchmarked to acquire new locomotives as well as rebuild and upgrade existing units in the way of re-bodying coal cars, buying multi level freight cars to handle increased automotive traffic and purchase intermodal containers and chassis.
The company has also budgeted $229 million to go towards continuing with the implementation of positive train control. Facilities and terminals are set to receive investment of $203 million and will go towards the continuation of a multi-year project that will see the expansion of Bellevue rail yard in Northern Ohio.
Other elements include the construction of a new intermodal terminal in Charlotte, N.C. which goes hand in hand with Norfolk Southerns Crescent Corridor initiative as well as the completion of a new locomotive service facility in Conway, Pa. on top of expanded bulk transfer facilities.
$84 million is also expected to be spent on infrastructure improvements which will aid in increasing main line capacity, accommodate traffic growth and provide NS match for innovative public-private partnership investments.
These investments will help in improving the transportation infrastructure of the nation as well as reduce fuel consumption, air pollution and relieve highway congestion by shifting the balance of highway freight vs. Rail freight.
Upgraded systems and computers will enhance safety after an investment of $57 million and will improve operating efficiency and equipment utilisation.