NS TO REDUCE CAPITAL SPENDING IN '94

NS TO REDUCE CAPITAL SPENDING IN '94

Norfolk Southern Corp. will spend $634 million for capital improvements in 1994, down from $747 million budgeted in 1993, David R. Goode, chairman, president and chief executive said Thursday.

"The lower level of capital spending in 1994 is a product of the intense focus we are placing on making the wisest, most efficient use of our assets," Mr. Goode said. "It also reflects the significantly reduced capital needs of our North American Van Lines subsidiary following its restructuring."The railroad is budgeted for $214 million in rail, crosstie and ballast programs. Other major projects include five new or expanded intermodal facilities and four new bulk distribution facilities.

The budget includes $82.8 million for new locomotives and $34.2 million for freight cars, including 326 rapid discharge coal cars and 250 multilevel racks for motor vehicle traffic.

NS also plans to spend $82.3 million for freight car improvements, including $46.3 million to rehabilitate 2,750 coal cars.