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SOUTH ISLAND. The table of mileage above given shows that the whole of the lines in the South Island authorized to be built will be completed by next June, except 25 miles, comprising the Otautau and Orepuki Provincial Branch Lines. Nelson-Foxhill Eailwat. This line has been opened for traffic throughout the past year, except the extension to the port. The local authorities having demanded that the railway works shall be so designed as to increase the width of the existing road, the vote given last year would be insufficient to complete the works. Ido not think the construction of the extension will much increase the traffic of the line. It is proposed to erect a small workshop here so that wheels may be turned up, and other ordinary repairs effected. Westpoet-Ngakawau Eailwat. Ten miles are completed, and the remainder very nearly so, except the coal staiths at Westport, which are, however, so far advanced that coal traffic might be at once carried on. This lino has been constructed solely for the purpose of opening up the extensive coal mines lying between Westport and the Ngakawau Biver, but the lessees have not yet done much to open out their several mines. The Wellington Coal Company have made a beginning, and it is hoped that they will do a large trade ; but none of the other companies have done anything beyond surveys and estimates. I am afraid the railway will be nearly idle for a year or two, but it must eventually pay a good dividend on its cost. A small workshop is required as at Nelson. Picton-Blenheim Eailwat. It is proposed to complete the line into the town of Blenheim, and, if means will allow, to extend it southwards. Geetmouth-Beunneeton Eailwat. A small workshop, and some additions to station accommodation, are the only new works required. Contracts have been entered into for part of the proposed river protection and harbour works, but the amount of work actually done is as yet small. It is proposed to continue these during the present year. Ambeelet-Waitaki Eailwat and Beanches. The whole of this line is now open for traffic except the Eyreton extension, and the only new works proposed are —changing the gauge of the section from Lyttelton to Amberley to the New Zealand standard gauge of 3 feet 0 inches, painting the bridges, and giving further station accommodation. As the change of gauge will throw the whole of the broad-gauge rolling stock out of use, an order has been sent to England for 300 wagons to be sent out at once. Eight locomotives will also be required to replace the nine broad-gauge engines now in use. It is also proposed to improve the line near the Waimakariri Eiver, so as to prevent the continual stoppages of traffic hitherto caused by floods, and to secure the Waimakariri Bridge, which is liable to scour. Waitaki-Inveecaegill, and Beanches. Waitaki to Moeraki Section. —Further station accommodation, and completion of the timber work to prevent slips, are the only works required. Moeraki to Palmerston Sections (Kartigi Contract). —The contract date for completion is January, 1878, but the contractors are falling somewhat behind time. Waikouaiti Section (9 miles 47 chains). —This work has been carried on by day labour, and will be completed in time for the plate-laying to go on as soon as rails can be conveyed by railway from Port Chalmers. Waikouaiti and Port Chalmers. —The whole of this work will be completed by January, 1878. The station at Port Chalmers is so cramped and inconvenient that an enlargement is necessary, and I think a sum of £10,000 should be appropriated for immediate requirements. Port Chalmers to Clutha. —More station accommodation, and the enlargement of the workshops at Dunedin, are the only works proposed for the year. Clutha Bridge. —Consists of seven spans of 120 feet each, and will be completed in October or November. Clutha Bridge to Balclulha. —A contract for this section, including the station at Balclutha, has been let, and will be ready about the same time as the bridge. Balclutha to Clinton. —Four miles of this section will bo kept for the " unemployed " of Dunedin. The rest will be let by tender, the plans and specifications being now nearly ready. The work is to be let, so as to be completed by the end of the financial year. Clinton to Waipahi. —Plate-laying in progress. Other work is finished. Waipahi to Invercargill. —Open for public traffic. Some further station accommodation will be required, which is included in the estimate of work for the year. Winton-Kingston Eailwat. From Winton to Lowther (36 miles 60 chains) is open for public traffic, and the whole line, including the station at Kingston, will be finished by the end of the financial year.