Rail Weekly Update #14

15 July 2004

DM&E CWR PROGRAM COMPLETED… IC&E CWR PROGRAM GETTING STARTED

As of July 15^th, we had installed just over 74 of the roughly 97 track miles to be completed by November 19^th. It appears we will meet or beat that schedule. The RJ Corman CWR crew has completed the DM&E’s portion of the CWR project and will now be converted to a tie gang to install ties between Lake Preston and the state line. The LA Colo crew will begin installing CWR on the IC&E near Calmar, Iowa on Monday the 19^th and will expect to complete that 14 track miles by the end of August. The IC&E CWR crew will install about 9 track miles of CWR on curves across the entire IC&E system

¨ All tie, crossing, and bridge work is completed on the first stretch of CWR between Sleepy Eye and Springfield

¨ Tie installation is continuing on the second section of CWR between Volga and Lake Preston and should be completed by early August. All bridgework is done in this area and both new switches are already installed at Arlington. Final crossing work at several locations will be done in conjunction with final surfacing.

¨ Work will continue on crossings and switches on the last section of CWR between Garvin and Verdi over the next several weeks. Along with that there will be several cranes in the area cleaning up scrap rail and OTM as well as the salvageable material.

¨ The remaining 2 rail trains (150,000 feet) are scheduled to be here by the second week of August. Both of these trains are for the IC&E, one for the curve patch program and the other for the Calmar project.