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Norfolk Southern Corp. expects to spend about 1.5 percent more on capital improvements in 2004 compared with this year. On Dec. 10, the railroad announced a 2004 capital spending budget of $810 million compared with $798 million in 2003, $705 million in 2002 and $806 million in 2001.

The 2004 budget includes $517 million for roadway projects and $258 million for equipment. Roadway spending targets $384 million for rail, tie, ballast and bridge programs; $29 million for communications, signal and electrical projects; $19 million for maintenance-of-way equipment; and $16 million for environmental projects and public improvements, such as grade-crossing separations and crossing-signal upgrades.

The equipment budget includes $178 million to purchase 100 six-axle locomotives, upgrade existing power, certify and rebuild 390 multi-level automobile racks, and purchase 212 bi-level racks once leases expire. The budget also includes $42 million for information-technology projects.

Under business and industrial-development initiatives, NS plans to spend $64 million to increase track capacity and access to coal receivers, bulk transfer facilities, and vehicle production and distribution facilities; improve terminals and add intermodal equipment; and provide additional investments for subsidiaries Triple Crown Services and TransWorks.