System-Wide Weekly Update #2

22 April 2004

The RJ Coreman construction continued to lay rail this week in the Sleepy Eye to Springfield. They will finish up on April 22 around mid-day, three days earlier than scheduled. This rail gang is now scheduled to start April 30^th (12 days early) working from Volga to Lake Preston. Tie installation has continued on schedule with 15,000ties installed to date. Ten more ballast cars came on line this week and surfacing has continued with 42 total pass miles completed thus far. Cobden siding was approved and an installation schedule is being devised. It will be included in next week’s update. A few points of interest –

¨ No major equipment problems to report.

¨ Material continues to be readily available except bridge – there is concern that with the speed the rail gang is moving we may eventually run into problems.

¨ The remaining 33 ballast cars should be coming at the rate of 6 to 10 per week.

¨ A major shortage of gondolas is causing concern for the removal of scrap and usable material from construction sites.

¨ Birmingham Diamonds are completed and will be delivered the week of May 11. Expected to be installed while the Ford plant shut down during July 4^th week.

¨ Tracy Siding is ahead of expectations. The first switch will be here May 1^st with crossover to arrive the week of May 10^th. In service by May 15^th .

Relocation of DM&E / IC&E connection switch at Owatonna is schedule to be done around the 29^th or 30^th of April.