CSX plans line expansion

Updated 4:43 p.m. ET, Thu Aug 11, 2005

CSX Corp. told investors Thursday that it plans to expand some existing rail lines to meet demand in the Southeast and Northeast as part of a long-term growth strategy, a move that will increase the company's capital expenditures over the next two years.

The Jacksonville, Fla.-based company said it plans to expand rail lines between Chicago and Florida , and between Albany , N.Y. , and New York City . The move is aimed at meeting freight-service demand for the rapidly growing Southeast, while improving service in the densely populated Northeast, CSX Chairman and Chief Executive Michael Ward said in a statement.

As a result, CSX plans to spend an added $300 million to $400 million in annual capital expenditures for its rail and intermodal segments over the next two years, as compared with average expenditures in the last three years. The company expects to start construction early next year.

Separately, CSX said it sees its revenue growing between 4 percent to 6 percent annually over the next five years, mainly from increased U.S. consumption, a rise in imports and tight transportation capacity.

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