Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, December 10, 1993                   TAG: 9312100198
SECTION: BUSINESS                    PAGE: B-12   EDITION: METRO 
SOURCE: By GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Short

NS TO CUT CAPITAL SPENDING

David Goode, chairman of the Norfolk-based transportation company, said it has budgeted $634 million for capital improvements next year, down from $747 million in 1993's budget.

The 1994 budget includes $632 million in newly authorized spending, with the remainder carried over from 1993 capital budget.

"The lower level of capital spending in 1994 is a product of the intense focus we are placing on making the wisest, most efficient use of our assets,` Goode said.

"It also reflects the significantly reduced capital needs of our North American Van Lines trucking subsidiary following its restructuring."

The budget includes $46.3 million to continue the rebodying of 2,750 coal hoppers in the Roanoke shops. That work is being done at the rate of 12 cars a day.

NS will spend other capital money in the Roanoke area for payroll, inventory, environmental and radio equipment.

Budgeted for the railway's rail, crosstie and ballast programs is $214 million. Other major projects include five new or expanded intermodal facilities and four new bulk-distribution facilities.

The new budget contains authority of $82.8 million to acquire locomotives and $34.2 million for freight cars, including 326 rapid-discharge coal cars and 250 multilevel racks for motor vehicle traffic, the railway said.