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For the fifth-straight year, Norfolk Southern Corp. is increasing its capital spending budget. Yesterday, the Class I announced its 2007 budget will total $1.34 billion, a 17 percent increase compared with 2006’s $1.15 billion budget. The railroad previously budgeted $938 million in 2005, $810 million in 2004, $798 million in 2003, $705 million in 2002 and $806 million in 2001.

The 2007 budget calls for spending $884 million on roadway projects, $401 million on equipment, and $55 million on small projects and real estate.

Projected roadway spending includes $610 million for rail, crosstie, ballast and bridge programs, including $73 million on capacity expansion projects; $47 million for communications, signal and electrical projects; $41 million for maintenance-of-way equipment; and $16 million for environmental projects and public improvements, such as grade crossing separations and crossing signal upgrades.

Equipment spending includes $321 million to purchase 53 six-axle locomotives and upgrade existing power. NS also will purchase 1,300 new higher-capacity coal cars and 739 freight cars as leases expire, and rebuild 388 multi-level automobile racks.

In addition, the railroad plans to spend $60 million on computers and information technology; $97 million on intermodal terminals and equipment; and $28 million on public-private partnership projects.