System-Wide Monthly Update #1

26, April 2006

The 2006 Capital budget has long since been approved and again this year, it is a very aggressive plan which will commit nearly $50 million to track improvements.  The highlights of these programs will be over 60 miles of CWR, over 150,000 ties, and nearly $5 million for bridge repairs on both properties.  Highlights are listed below:

¨ There are 4 major CWR projects scheduled for the 2006.  The first is a 10 mile project between Sanborn MN. and Springfield MN. on the DM&E.  This project was started on April 3^rd and completed April 13^th by the RJ Corman crew.  The second is a 14 mile project south of Austin.  The third project consists of 11 miles near Bellevue, and the last project will take place on the double track north of Kansas City.  This project will upgrade 17 miles on track # 2 between Moseby Jct and Lawson.

¨ The last part of the CWR program is our annual curve patch which will involve the replacement of rail in nearly 40 curves totaling nearly 10 track miles.

¨ We are investigating the possibility of installing a siding near Calmar and will update this web site as more info becomes available.

¨ Nearly 40 new turnouts will be installed on the two properties in 2006, mostly in connection with the various CWR projects, but also some others.  See the CWR section on the Rail Update “page” for more details.

¨ There will be over 150,000 ties installed across both systems in 2006.  The largest projects consist of over 30,000 ties on the PRC sub, over 20,000 on the Marquette sub, and 17,000 on the Kansas City sub.  Details of all projects on the Tie Update “page”.

¨ There will be several major bridge projects on the two properties this year.  The most notable is the redecking and rail renewal on the Missouri River bridge in Pierre SD (Bridge # 1500).  More information on bridge projects are included on the Bridge Update “page”.

¨ Surfacing estimates for 2006 are over 850 miles with over 180,000 tons of ballast used.