System-Wide Weekly Update #18

12 August 2004

This past week, the CWR program on the IC&E Railroad went into full gear. Steve Koser’s crew has been putting in curve replacement rail on some of the curves on the far east end of the Mason City sub, and the LA Colo & sons contracting crew has gotten a good start with installing the last 15 miles of CWR in the Calmar area

Surfacing crews on both properties have been making excellent progress and have surpassed the halfway point in the pass miles we expect to be surfaced this year.

The siding projects are also moving forward at a very good pace with the Elton extension being completed and the De Smet siding work getting started.

The bridge crews are making excellent headway on the Sioux River bridge near Volga and another crew has completed the rebuild of the Mine Creek Bridge at MP 196.7 on the Tracy sub.

¨ Equipment problems seem to be mostly behind us. This has improved the production on all crews.

¨ The last shipment of ties for the DM&E project is on the property, leaving only the ties for the Florence connection left to be delivered. All ties have been delivered and unloaded on the IC&E.

¨ Ballast deliveries have increased and most surfacing crews have several weeks of ballast spread in front of them

¨ The Elkton siding, which was put into service the 28^th of July, had its final surfacing completed this past week. Crews have been working on the Cobden, and De Smet sidings with expectations of having all of these projects completed by early to mid September. Dirt work was started on the Florence connection on Monday the 2^nd of August.