System-Wide Monthly Update #4

13, July 2005

 

The 2005 production season has been proceeding on or ahead of schedule in all areas since start up several months ago.  Tie and surfacing programs are nearing 50% completion and bridge projects are over 60% complete for the year.  This season’s CWR programs are approaching 90% completion and will be 100% completed by the end of the 3rd quarter this year.

 

¨       All 5 rail trains (nearly 400,000 feet) were delivered and unloaded earlier this year and nearly 90% of the 2005 CWR program has been completed.  The two major CWR programs this year near Revere MN. on the DM&E and Plymouth IA. on the IC&E have been completed for several weeks and final surfacing on these areas is being done now.

¨       The “Curve Patch” program for 2005 includes laying over 75,000 feet of premium rail on over 35 curves between Nora Junction on the Mason City sub, to Airline Junction on the Kansas City sub.  Work on this program was started last month and all curves on the Mason City, Marquette, and Chicago and the Kansas City subs double track are completed.  The curves on the River and the Kansas City single track will be completed by the IC&E tie/surfacing crew as they continue to move northward on these subs, with expected completion of mid-September.

¨       We are now scheduled to install approximately 185,000 ties in the 2005 season across the two systems.  We now expect all of these projects to be completed by the end of October.

¨       The most notable bridge projects of 2005 are the complete rebuild of Bridge 1506 at Fort Pierre, South Dakota and Bridge 434.5 at Sleepy Eye, Minnesota on the DM&E.   The Sleepy Eye bridge was completed late last month and bridge 1506 is having the final touches put on it right now and will be 100% complete by the end of this month, at least two months ahead of schedule.

¨       Most materials for all projects seem to be in good supply and will be readily available, although high steel and fuel prices have hampered some deliveries and have raised the prices on many items.

¨       There are now 30 new premium turnouts in the 2005 capital plan with 15 of them being associated with the CWR projects and the rest for various upgrades around the two properties.  Over 50% of the turnouts are already installed and the rest are scheduled to be installed by the end of September

¨       Current estimates are for about 220,000 tons of ballast for the 2005 season’s 750 miles of surfacing.