CSX targets $2.4 billion capex in 2016
Written by Mischa Wanek-Libman, editor
CSX is aiming for a $2.4 billion capital expenditure program in 2016, which reflects a $100 million reduction over 2015 numbers.
The railroad said core investment will decline to $2.1 billion in 2016. It was at $2.2 billion in 2015. The railroad will spend 52 percent of its program, or $1.24 billion, on infrastructure investments that target rail safety and performance. Infrastructure portion of the capital program is up slightly compared to 2015 numbers.
CSX will devote 23 percent, or $552 million, of its program to equipment, which will focus on upgrading its locomotive fleet. While same percentage of the program is spent on equipment, the dollar amount is down slightly, $23 million, when compared to 2015 numbers.
Strategic investment will make up 13 percent, or $312 million, of its program, down from 16 percent, or $400 million, in 2015. The railroad’s strategic investments will go toward supporting growth and productivity.
Finally, CSX anticipates spending $300 million in 2016 toward Positive Train Control. The railroad spent the same amount in 2015 and estimates total cost of the technology to be $2.2 billion.
