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Norfolk Southern Railroad: 2001 Plans

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  • Ronald Dawson
    DepotNews.com NewsWire Norfolk Southern Railroad Plans to Increase Spending on Capital Improvements Source: Knight Ridder/Tribune Business News Publication
    Message 1 of 1 , Dec 22, 2000
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      DepotNews.com NewsWire

      Norfolk Southern Railroad Plans to Increase Spending on Capital
      Improvements
      Source: Knight Ridder/Tribune Business News
      Publication date: 2000-12-21
      Arrival time: 2000-12-22

      Dec. 21--Despite feeling significant financial pressures from reduced
      revenues and increased fuel costs, Norfolk Southern plans to spend 7.9
      percent more on capital improvements next year than it did in 2000.
      Highlights of the Norfolk-based railroad's $806 million capital improvement
      budget for 2001 are the planned purchase of 160 locomotives and earmarking
      $449 million for right of way improvements.

      "We made those plans based on our business needs for 2001, to serve our
      customers and to keep our system in top shape," Norfolk Southern spokeswoman
      Susan Terpay said.

      The company spent $747.2 million on capital improvements this year; it spent
      more than $1 billion in 1999.

      The spending increase of $58.8 million is partly driven by the company's
      locomotive purchase. The company lease-financed 150 locomotives in 2000, 10
      less than the 160 it plans to purchase from General Electric in 2001.

      The locomotive purchase is part of a $256 million equipment budget. The
      equipment budget also will pay for upgrades on the company's fleet of more
      than 3,500 owned and leased locomotives, for rebuilding some multi-level
      automobile racks, and for computer-related projects.

      The company spent $143 million on equipment improvements in 2000.

      Norfolk Southern's railway improvement budget of $449 million is down 22
      percent from the 2000 budget of $576 million.

      The 2001 railway improvement budget includes:

      -- $264 million for rail, crosstie, ballast and bridge programs;

      -- $63 million for intermodal improvements;

      -- $35 million for signal and electrical improvements;

      -- And $23 million for environmental projects and public improvements, such
      as crossing signal upgrades and grade crossing separations.

      The company's T-Cubed telecommunications subsidiary will spend $61.9 million
      to complete fiber-optic networks between Chicago and Washington; Atlanta and
      Jacksonville; and Atlanta and Chattanooga.

      Norfolk Southern had issued an earnings warning after the close of trading
      Tuesday, but its stock was basically unaffected by the news, rising 6 cents
      Wednesday to close at $13.50.

      -----

      To see more of the The Virginian-Pilot, or to subscribe to the newspaper, go
      to http://www.pilotonline.com

      (c) 2000, The Virginian-Pilot, Norfolk, Va. Distributed by Knight
      Ridder/Tribune Business News. NSC, GE,


      Publication date: 2000-12-21
      © 2000, YellowBrix, Inc.
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