Sidings Weekly Update #15

22 July 2004

Siding Projects Continue to Make Big Progress!!

As of July 22^nd 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 70% complete 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. Over 4,000 ties have already been laid out on the grade and over 7,000 track feet of rail has been laid on the ties, completely spiked and anchored. The first layer of ballast was applied today, the 22^nd of July.

¨ Kent Maxon’s surfacing crew will make an initial pass on this ballasted section of track and then the track will be usable for a long stub track to stage west bound loads or empties.

¨ This siding will be put into service as a 6000 foot stub track while crews work on the Elkton and De Smet sidings and while the final wetlands mitigation is resolved. The crews will then return to Cobden to install the east switch and complete this project.

2.) The Tracy siding was put into service on Thursday 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 have finally been settled and signed so construction can begin.

¨ The dirt work contract has been awarded to Mathiowitz Construction of Sleepy Eye. Work will start on August 2nd and completed towards the end of September

¨ Connection is expected to be in service by the end of October.

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 dirt work started on Monday the 19^th and is expected to be completed by the end of the month.

· The new west switch will be assembled and installed during the first week of August.

· Track construction is expected to begin the first week of August and be completed in three weeks.

· The new siding is expected to be in service by the 20^th of August

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.

· Track work is over 50% completed and should be finished by the end of the month

· The final track work, the addition of a crossing, removal of the old switch, and final surfacing are expected to occur within the next 10 days to complete the project.

• This siding is now scheduled to be in service by the first week of 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 has been completed so this project is 100% comple