Sidings Weekly Update #14

15 July 2004

Siding Projects Continue to show

As of July 15^th we have put 2 of the 6 sidings now planned for 2004 into service, Tracy and Sanborn.

1.) The Cobden siding track work is now about 60% completed if we assume that we are going to be able to build the entire 10,000 foot siding.

¨ Track construction started on June 28^th with over 4,000 ties being laid out on the grade already and over 7,000 track feet of rail laid on the ties, completely spiked, anchored, and ready for ballast.

¨ Darrin Legare from New Ulm continues to head up this project with help from Ted Arndt on the boom truck and contractor Dave Moriarty from Brookings, SD.

¨ This siding has progressed rapidly thanks to the good leadership mentioned above and has reached the area where we need a decision on our wetlands mitigation. So, awaiting that decision, this crew will move to Elkton the week of July 19^th to work on that siding extension for the next two weeks.

2.) The Tracy siding was put into service on Thursday the May 6^th and continues to perform up to the transportation department’s expectations.

¨ To complete the project, we expect to install the crossovers late July or more likely in August, but the new pass is usable without the crossovers being installed and has been used extensively to meet trains.

3.) The negotiations on the Florence siding continue to move forward and we expect a final agreement very soon. We still expect to receive an agreement soon enough to complete this project during this work season.

4.) The De Smet Siding extension was approved in late May. This project will extend the siding nearly 4,000’ westward from the current west switch location.

· The contractor selected to do the dirt work is Loiseau of Flandreau, South Dakota. This contractor has moved his equipment into position and will start immediately. The dirt work is expected to be completed by the end of the month at the latest.

· The switch has been delivered to the site this past week and will be assembled in the near future.

· Switch installation and track construction are scheduled to begin shortly after the completion of the dirt work.

· Rail and OTM have been recovered from the Arlington CWR project and have been delivered to the site.

5.) The Elkton Siding will be extended over 4,000’ to the east. This will help with congestion and will enable the meeting of longer trains.

· Dirt work has been completed for some time, ready for the track construction to begin.

· A new switch for the east end has been installed last week and ties are being unloaded on site in anticipation of construction beginning the week of July 19^th.

· Rail and OTM that has been recovered from the Volga/Lake Preston and the Tyler projects will be delivered and stored on site ready for the construction.

• Best estimate now for being in service is early to mid August.

6.) The Sanborn Siding project involved renewing over ½ the ties in the current siding and elevator tracks and changing the rail as well as adding ballast and surfacing. This removed restrictions that allowed only empty cars and four-axle locomotives to use these tracks. The track was put into service on June 23^rd!!

· Ties were installed the week of June 14^th.

· Rail was changed and anchors installed the week of June 21^st.

· Surfacing is being completed this week.