Friday, February 13, 2009

How Norfolk Southern will spend $1.4 billion

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Norfolk Southern’s 2009 capital spending program, totaling$1.412 billion, is the railroad's second-largest in five years. It is exceeded by 2008’s $1.556 billion, but tops expenditures of $1.341 billion in 2007, $1.178 billion in 2006, and $1.025 billion in 2005.

Roadway will get $698 million of the new capital budget, with infrastructure improvements claiming $170 million; facilities and terminals, $142 million; locomotives, $79 million; freight cars, $45 million; and a variety of other projects, $213 million.

An outline of the 2009 capital budget was part of NS’s presentation at the BB&T Transportation Services Conference on Jan. 12.

At an earlier analysts’ meeting, Deb H. Butler, executive vice president planning and chief information officer, said that the budget could be adjusted “if business conditions are substantially worse than forecast.” One of the goals of the 2009 spending plan is to “support the growth we continue to expect in future years,” with special emphasis on the intermodal market, she said.