US railroad operator Norfolk Southern is planning to invest $2bn in 2013 to improve its rail freight transportation network.
Out of the total investment, the company intends to spend $831m for rail road improvements, which include maintenance and replacement of rail, crossties, ballast and bridges.
The company will invest $420m to buy new locomotives, rebuild and upgrade existing units, re-body coal cars and purchase multi-level freight cars to meet the rise in rail freight traffic.
Norfolk Southern has also earmarked around $229m for the implementation of a positive train control (PTC) system.
Norfolk Southern CEO Wick Moorman said: “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.”
The company plans to spend $203m in facilities and terminals in addition to the continuation of a multi-year project to expand Bellevue rail yard in Northern Ohio and build a new intermodal terminal in Charlotte, North Carolina.
Part of the investment will be used to complete a new locomotive service facility in Conway, Pennsylvania, and improved bulk transfer facilities.
Around $84m will be invested in infrastructure improvements to increase main line capacity and accommodate traffic growth.
As part of its technology investments, the company expects to spend $57m on new and upgraded systems and computers to improve safety and operating efficiency.
Image: Norfolk Southern’s $2bn investment is intended to enhance its rail transportation network in the US. Photo: courtesy of Norfolk Southern Corp.