Sidings Weekly Update #17

5 August 2004

ELKTON EXTENSION COMPLETED!! DE SMET EXTENSION AND FLORENCE CONNECTION BOTH STARTED!!

As of August 5^th we have put 3 of the 6 sidings now planned for 2004 into service, Tracy, Sanborn and Elkton. Work on the other three; Cobden, Florence and De Smet is progressing.

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 7,000 foot of track has been completely built

¨ Siding has been put into service as a 4,500 foot stub track until final extension is completed .

¨ Wetlands mitigation is in its final stages and we expect to have the work on this siding beginning again by the middle of the month.

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

¨ We have received the crossover switches this week and will install them in late August or early September when the surfacing crew gets close to the area.

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 Mathiowetz Construction of Sleepy Eye. Work started on August 2nd and we expect it to be completed by 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 feet westward from the current west switch location.

· The dirt work started on Monday the 26^th and will be completed by the end of this week.

· The new west switch has been assembled and is being installed today, the 5^th of August, by Wes Risseeuw and his crew.

· Track construction is expected to begin next week 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 has been extended over 4,000 feet to the east and was put into service on the 28^th of July. This will help with congestion and will enable the meeting of longer trains.

• Final surfacing will be completed today the 5^th of August on the extension and will only leave tie and surfacing on the original part to be completed prior to this project being completely done.

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 back 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% complete.