Rail Weekly Update #11

24 June 2004

CWR PROGRAM NEARS COMPLETION ON DM&E

As of June 24th, we have installed just over 65 of the roughly 97 track miles to be completed by November 19th. It appears we will meet or beat that schedule. The RJ Corman crew completed the section of CWR on the DM&E between MP 235.5 and MP 258.3 yesterday. This leaves only 9 track miles to be installed on the DM&E. This last stretch of CWR will be completed in about 8 days when the crew returns on July 7^th. The CWR projects on the IC&E are scheduled to begin in mid July. The Mason City sub will be completed by the end of August with the curve program lasting throughout the remainder of the year.

¨ Tie work is completed on the first stretch of CWR between Springfield and Sleepy Eye and ballast has been dumped in preparation for final surfacing and the raising of speed in this area to 40 MPH. There are also several crossings to be completed and the Cobden siding switches to be installed in conjunction with this surfacing work. We expect this area to be completed by late July.

¨ Spot surfacing, bridgework and tie work are continuing on the second stretch of CWR between Volga and Lake Preston. We expect this entire area to be up to 25 MPH by the July 4^th holiday weekend. This area has been 10 MPH since early 1997.

¨ Project Supervisor Tom Goffinet unloaded a trainload of 136# CWR in the Calmar area this week in preparation for the rail laying that is to start in Mid July. These trains were delayed several weeks so the ties could be installed before the rail.

¨ The remaining 2 rail trains (150,000 feet) are scheduled to be here by the end of July.

¨ Steve Koser and Project Supervisor Tom Goffinet expect to start their part of the 2004 CWR project on the IC&E the second week of July. They will begin on the Mason City sub and then will lay curve patch rail for the remainder of the year toward Kansas City.