2004 RRIF Project Update Page

2004 promises to be a watershed year for the DM&E/IC&E capital program.  Historically, the capital budget for the combined IC&E/DM&E system has been approximately $16.0 million.  That historic “base capital” combined with a new “supplemental capital” program made possible by the Company’s December 2003 Railroad Revitalization Improvement Financing loan approved by the Federal Railroad Administration (FRA), which allows for a combined 2004 capital budget of $65.5 million.[1] 

Never before in the 18-year history of the company have we had the opportunity to make such improvements.  With that opportunity comes tremendous challenges in making certain costs are contained and the projects are timely completed.  Accountability across the board is critical.  To hold ourselves accountable to our shippers, employees, owners and the FRA, we are publicly tracking our progress as the construction year unfolds.

 We have identified the 5 major project components, and will track them on a weekly basis so that the public can follow our progress and success (or failure) in project completion.  The following guide will give interested parties ready access to each of the 5 major project components (rail, ties, surfacing, bridges, and sidings), as well as a generic “weekly report” generally describing how the overall process is working.

Weekly Reports

We will outline the progress of each and provide links to maps and timelines to give a more detailed picture and ongoing status report updates.  The 5 major project components include:

[1] This amount is a combination of (a) direct FRA loan proceeds and (2) additional cash commitments from the company made possible by a reduction of debt service resulting from the FRA refinancing.  Depending on the ultimate price of scrap steel and other factors, this budget may increase somewhat, but is unlikely to be less. 

(1) RAIL

Hot Box Detector/AEI Reader, Lake Benton 10/12/04

  Birmingham Diamond Project 7/29/04

  • Approximately 100 track miles of 136# CWR rail.

  • Scheduled start date = April 15, 2004

  • Scheduled completion date = November 19, 2004

 

 

(2) TIES

925 Tie Inserter    After Ties 

  • A total of 182,000 hardwood ties will be installed in 2004.

  • Scheduled start date = April 5, 2004

  • Scheduled completion date = December 1, 2004

 

 

(3) SURFACING
Tracy Siding - Brandt Truck  5/10/04 Mark 4 raising Track 4/29/04

  • 800 pass miles of track will be surfaced before the end of 2004

  • Scheduled start date = March 22, 2004

  • Scheduled completion date = December 1, 2004

 

 

(4) BRIDGES

 Sioux River Bridge 6/18/04

   Sioux River Bridge 6/11/04

  • 146 bridges will be rehabilitated in 2004.

  • Scheduled start date = March 1, 2004

  • Scheduled completion date = November 1, 2004

MAPS

WEEKLY UPDATE
DME / ICE North / ICE South Bridges

 

(5) SIDINGS
DME/BN Interchange, Florence 10/21/04   Arlington Switch 05-14-04

  • The current plan contemplates 4 sidings to be constructed in 2004[2]:

    • Tracy, MN (5200 ft). 

    • Elkton, SD (4250 ft)..

    • Sanborn, MN reconstruction (3900 ft).

    • Desmet, SD (3750 ft).

    • Cobden, MN (8000-10000 ft).

    • Florence, MN (10000 ft).

 

[2] Subject to modification depending on current negotiations with connecting railroads and other operational adjustments.