2012 capital investments
Capital projects sustain business
With track infrastructure in 22 states, Norfolk Southern is a capital intensive company and must make significant investments to ensure our ability to provide safe, efficient, and reliable rail transportation services. We also plan strategic capital investments to expand business opportunities and to reduce environmental impacts of our operations, while returning value to shareholders.
In 2012, we invested a record $2.24 billion on capital projects, a nearly 4 percent increase over 2011. Our largest investments involved maintenance and replacement of rail infrastructure; the purchase and rebuild of freight cars and locomotives; and construction projects at facilities and terminals.
During the year, we installed 509 track miles of rail, surfaced 5,642 miles of track, and installed 2.6 million new crossties. More track miles of rail were installed and surfaced than in any of the previous five years.
Our expenditures on locomotives contributed to ongoing efforts to improve fuel efficiency and reduce emissions, covering the purchase of 60 new AC-powered units and an expansion of our in-house locomotive rebuild program. Our freight car program directed investment in new and rebuilt coal cars, intermodal containers and chassis, and multilevel automobile racks.
Our expenditures on facilities and terminals focused on intermodal terminals and equipment that will add capacity to our intermodal network, bulk transfer facilities, and mechanical service shops. Two noteworthy projects under construction in 2012 were a new locomotive repair and maintenance shop at our Conway, Pa., rail terminal and an approximately $160 million, multiyear expansion that will nearly double the size of our classification hump yard in Bellevue, Ohio. The Bellevue expansion is designed for projected increases in business volume through our Northern Region.