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Gbeymouth to Beunneeton. The formation of this line is finished, and tenders for laying the permanent way are now invited by advertisement. At the Grey Gorge a suspension bridge of 300 feet clear span is being erected for conveyance of the coal from the mines to the railway. The contract date for the completion of the bridge is sth September next, but it is scarcely possible that it will be ready to time. At Greymouth a wharf 800 feet long is being built for the shipment of coal. This work should now have been completed, but will probably not be ready till October next. Great delay has been caused on this line by landslips, which have also been the cause of an unexpected expenditure of about £15,000. An expensive viaduct had to be built to pass one slip, and a number of small works were rendered necessary by slips in cuttings and banks. Extra culverts have also been found necessary. The bridge over the Grey, at the Gorge, was also built, instead of a wire tramway as originally intended. The increased cost is £5,500. There is an excess of £9,000 in the cost of rolling stock over the estimate, due largely to increased quantity ordered; while the cost of rails has been exceptionally heavy, being £4,000 more than the estimate, and equal to more than £1,500 a mile. The cost of land has been very high, being £3,000 more than was expected. These items explain the excess of the cost over the estimates. Addington to Kowai. This line was opened before the date of my last report up to the Ashley Bridge. This structure is now opened for traffic, so that permanent-way materials can be conveyed across it for the line beyond which is under contract, and will probably be opened by the end of September. The difficulty of getting sleepers is the only likely cause of delay. A length of two miles only has been opened this year, including the bridge, which consists of fifty spans of 60 ft. each, and four spans of 12 ft. each. Canteebuey Beanch Lines. These are now all open, except the Kaiapoi and Eyreton, which will be finished in September, a portion of the Rolleston to Malvern, which will be ready in August, and the Waimate branch, which is not yet begun, as the main line is not ready up to the junction. It will be commenced very shortly. The excess of cost over the estimates is due entirely to the very high prices paid for all the rails for these lines. Selwyn to Rakaia and Rakaia to Ashbueton. Both opened before my last annual report. Ashbueton to Temuka. The Ashburton Bridge, consisting of twenty-eight spans of 60 ft., and twenty spans of 13 ft., was opened on the 31st May, as well as the line to the north bank of the Rangitata River. The Rangitata Bridge is under construction, and a temporary bridge is being made, which will carry the traffic until the main bridge is ready. The temporary bridge is already carried across the north branch of the river, and will be across the south branch some time in August. Temuka to Timaeu. The contractor for the section between the Rangitata and Temuka having failed to make proper progress with the Orari Bridge, that work was put into the hands of Mr. E. G. Wright, who has begun work. The earthwork and small bridges are nearly finished. From Temuka southwards the principal works are the Temuka and Opihi Bridges, the former of which is finished, and the latter nearly so. The line from the Opihi to Timaru is completed. Timaeu to Waitaki. The whole of this line is under contract, and will be completed in about a year. Waitaki Beidge. This important work is in a forward state. It consists of one hundred and ten spans of 33 ft. each, supported on cast-iron cylinders filled with concrete. The whole of the piers are in place, and seventy-seven of the spans erected; each span consists of two wrought-iron plate girders. The contract date for completion is 27th October next, and there is no reason to supjwse there will be any delay. Waitaki to Moeeaki. The first section from the Waitaki to Oamaru is nearly completed. From Oamaru southwards to Moeraki the work is under construction by Messrs. Brogden, whose contract time expires early next year. On the port branch the line had* to be changed owing to landslips, which has increased the cost of construction by £18,500. For this line no estimates were prepared, as at the time the appropriations were granted for the general railway scheme new surveys had been begun, by which this line was very much changed in direction. An addition to the original estimate was made, to meet obviously too low prices, for bridging and permanent way, but there were no data on which to frame an estimate of the cost of earthworks. 7—E. 3. "