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U.S. Class I railroads will spend more than $8 billion this year to lay new track, purchase equipment and improve infrastructure, according to plans the railroads submitted to the Association of American Railroads.

The investment represents a 21 percent increase compared with 2004 and sets a new Class I annual spending record.

“These massive investments by the Class I railroads will translate into jobs, increased productivity for the railroads, additional capacity and better service for our customers,” said AAR President and Chief Executive Officer Edward Hamberger in a prepared statement.

The investments are necessary to keep pace with growing traffic, which is expected to increase more than two-thirds by 2020.

A more detailed breakdown of Class Is’ 2006 maintenance-of-way spending plans will be available in Progressive Railroading’s April issue.