Surfacing Weekly Update #7

20 May 2004

CONTINUING ON SCHEDULE

As of 27 May, we have surfaced over 145 of the 800 pass miles to be surfaced in 2004, scheduled to be completed by November 24th. As of now, it appears we will meet and may very well exceed that schedule. The surfacing is slightly ahead of schedule.

¨ All of the 53 new Ballast cars that were leased for 2 years have arrived on line with over 48 already in service and receiving very good reviews from the engineering forces

¨ The Brandt truck, operated by Ernie Lehmkuhl has been very instrumental in the ballast unloading operation. This truck can pull up to 20 cars of ballast or other material for MOW crews to unload saving on work train requirements.

¨ Surfacing continues at a very strong pace with over 25 miles completed last week and averaging over 20 miles per week.

¨ As of 27 May 2004, over 65,000 tons (over 860 car loads) of ballast has been delivered. This is over 33% of the 200,000 tons expected to be delivered this year.

¨ The Transportation Department continues to do an excellent job moving the loads and empties to the needed locations.