System-Wide Monthly Update #1

7, February 2007

 

The 2006 capital program has long since been completed and plans have moved forward for the 2007 production season. The 2006 season saw over 240,000 ties installed and over 80 miles of CWR across the two properties. The latest project involving CWR was the West End Project which involved 90,000 ties and over 60 miles of CWR between Wall, SD and Colony, WY. This project did not get started until September; however 80,000 of the ties and 15 miles of CWR were able to be installed in 2006 before freeze up. The remainder of the ties and rail will be installed in the 2nd quarter of 2007. Updates of the completed 2006 projects are below and the previews of the 2007 capital season will follow on the following pages:

 

¨       The major rail projects that were completed in 2006 were as follow:

1.     10 miles of 136# CWR between Cobden, MN and Sanborn Minnesota on the DM&E’s Tracy sub.

2.     14 miles of 136# CWR south of Austin, MN on the IC&E’s Owatonna sub.

3.     13 miles of CWR near Bellevue, IA on the IC&E’s Marquette sub.

4.     17 miles of used 133# CWR south of Lawson, MO on the Kansas City Sub.

5.     16 miles of new and used 115# rail between MP 609 and MP New Underwood, SD on the DM&E’s PRC sub.

6.     Over 10 miles of CWR for curves all over the entire IC&E.

 

¨       The Major tie projects that were completed in 2006 were as follows”:

1.     IC&E Tie projects

1.     6,000 ties on the Chicago sub near Davis Junction

2.     20,000 ties on the Marquette sub south of Marquette

3.     20,000 ties on the Mason City sub

4.     10,000 ties on the Owatonna sub

5.     8,000 ties on the River sub

6.     17,000 ties on the Kansas City sub near Ottumwa

2.     DM&E Tie Projects

1.     10,000 ties on the Pierre sub west of Huron

2.     14,000 ties on the Crawford and lower Black Hills subs

3.     30,000 ties on PRC between Philip and Wall

4.     17,000 ties east or Rochester on the Waseca sub.

5.     40,000 ties on the PRC sub between Wall and Rapid City. These ties were part of the “West End” project that was approved late in 2006

6.     32,000 ties on the Upper Black Hills sub between Colony Wyoming and Rapid City, SD. This project was also part of the “West End” project.

 

¨       Surfacing crews on the two properties unloaded more than 200,000 tons of ballast and surfaced well over 900 miles of track in the 2006 season. This was accomplished with 8 Company crews and 1 contracting crew to assist late in the year.

 

¨       There were several major bridge projects worth noting that were completed in 2006. The most notable were the Pierre bridge, #1500, over the Missouri River, Bridge #1659 near Nowlin, SD, Bridge #1703 just west of Philip, SD.

 

¨       Projects for 2007 capital projects will be detailed further on the following pages.