System-Wide Weekly Update #4

6 May 2004

The RJ Corman Company returned to the DM&E and began the next section of CWR laying on Sunday the 2^nd of May. The plan is to lay the rail between Volga and Arlington on this trip and then Arlington to Lake Preston on the next trip, completing this entire area by Memorial Day. Tie installation on all crews has continued to improve thanks in large part to good organization and cooperation from the Transportation Department and we are now ahead of schedule on ties with more than 43,000 ties installed to date. Surfacing has also continued to improve with over 81 miles of track now surfaced. The new Tracy siding will be put into service at the close of work today May 6^th, and the dirt work on the Cobden siding is 80% completed, waiting on the wetlands mitigation on the east 2000’ of proposed siding area. The west switch for the Cobden siding is expected to arrive the first week of June and we will start track construction at that time and now expect to have that siding in service by mid- September. Weekly points of interest --

¨ Equipment remains very reliable with only minor breakdowns reported

¨ Delivery of remaining ties and bridge material is biggest concern. The high price of scrap has caused an unusually high demand for gondolas resulting in delays for the delivery of this material. These delays have not caused any crew delays yet.

¨ All new, air operated ballast cars have left the supplier and are in route to New Ulm or Brookings for loading. Excellent reports from the field on these cars.

¨ Birmingham Diamonds have been loaded and shipped with expected arrival in KC within two weeks. These pre-plated diamonds will be pre-assembled on site and we now plan installation during the week of July 12^th.