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NS plans $2B 2013 spend

COAL rail shipper Norfolk Southern has big plans to improve its rail service, safety and sustaina...

Donna Schmidt

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The company said the largest chunk of its capital improvement, $831 million, would be used to improve roadways on its line including rail replacements, crossties, ballasts and bridges.

Meanwhile, another $420 million will be spent on equipment such as locomotive purchases, rebuilds and upgrades, coal car re-body work and intermodal containers and chassis.

NS’ rail transportation network will also get a $299 million shot in the arm – 11% of the total capital expenditure budget – for “positive train control”

Facilities and terminals will receive $203 million, including the continuation of a multi-year project to expand Bellevue rail yard in northern Ohio; the construction of an intermodal terminal in Charlotte, North Carolina; completion of a locomotive service facility in Conway, Pennsylvania; and new and expanded bulk transfer facilities.

Main line capacities will also see enhancements this year thanks to a projected $84 million in spending for infrastructure improvements, allowing NS to accommodate traffic growth, reduce the consumption of fuel and air pollution and relieve highway congestion.

Finally, the company will invest $57 million for new and upgraded systems and computers to enhance safety and improve operating efficiency and equipment utilization.

“Our capital plan will maintain the safety and quality of our existing franchise, improve service quality and performance, achieve operational efficiencies and productivity improvements and support business growth,” chief executive officer Wick Moorman said.

“We continue to invest in the infrastructure, equipment and technology necessary to provide the best possible service to our customers.”

In all, the shipper has 20,000 route miles in 22 US states and the District of Columbia.

It serves every major port in the eastern US and counts coal as well as industrial and automotive products as its primary commodities.

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