Rail Weekly Update #15

22 July 2004

DM&E CWR COMPLETED…PREP WORK ALMOST DONE ON THE IC&E FOR CWR

As of July 22^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 2^nd of August and will expect to complete that 14 track miles by early September. The IC&E CWR crew will begin installing about 9 track miles of CWR on curves across the entire IC&E system on Monday the 26^th.

¨ 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. The first train of nearly 70,000 feet of premium rail for curves will arrive in Kansas City today and will be unloaded by the end of next week.