THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, December 3, 1994 TAG: 9412030275
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Short : 43 lines
Norfolk Southern Corp. has boosted its budget for capital improvement 9.6 percent for 1995, the company announced Friday.
The Norfolk-based railroad plans to spend $695 million next year on rail improvements, new locomotives, facilities and other capital outlays. Last year it spent $634 million.
``Our business is strong and our 1995 capital spending reflects our resolve to be prepared to give our customers the high levels of service they expect, and we intend to deliver.'' said David R. Goode, chairman, president and chief executive of Norfolk Southern. ``Our capital spending, along with improvements in asset utilization, will enable us to do the job.''
The biggest expenditure in the budget is $220 million for the rail, crosstie and ballast programs for railroad improvements. The railroad also plans to purchase 125 six-axle locomotives for $148 million and spend $57 million to rebody 3,500 coal cars.
Among other major expenses are:
$52 million to buy 414 multi-level racks for automobile transport and 300 sixty-foot box cars for automotive and aluminum service, and to rebuild some 86-foot auto parts boxcars.
$44 million for projects to improve rail line capacity, mostly in northern Georgia, Cincinnati and northern Indiana.
$36 million for a new computer system to replace the existing yard inventory system.
$28 million for new or expanded intermodal, automotive and bulk distribution facilities.
$21 million to replace 388 miles of signal pole line with state-of-the-art signaling equipment.
$9 million for North American Van Lines Inc., the railroad's motor carrier subsidiary.
KEYWORDS: BUDGET NORFOLK SOUTHERN by CNB