NS plans $2.4 billion capital expenditure program in 2015

Written by Mischa Wanek-Libman, editor
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Norfolk Southern

Norfolk Southern is targeting a $2.4-billion capital expenditure program in 2015 the railroad revealed during its fourth-quarter and full-year 2014 results presentation. This year's program reflects a $277-million increase over the railroad's 2014 program.

 “Norfolk Southern delivered another solid quarter of financial performance, capping a record-setting year during which our company achieved its best results for revenues, operating income, net income, earnings per share, and operating ratio,” said CEO Wick Moorman. “For 2015, we plan to invest $2.4 billion in capital investments to maintain the safety and quality of our rail network, enhance service, improve operational efficiency, and support growth opportunities.”

The railroad said the investments would maintain the network, improve service and invest for growth.

Core and replacement investments, such as rail, tie and ballast programs; freight car replacements and NS’ locomotive rebuild program will account for 71 percent of the capex program. Growth and productivity investments, such as infrastructure improvements and intermodal terminals, will comprise 20 percent of the program. Finally, positive train control will make up nine percent, or $220 million, of the 2015 program.

NS plans to spend $927 million on its roadway; $238 million on facilities and terminals; $104 million on infrastructure and $264 million on technology and other projects.

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