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Amberley-Waitaki Eailway, with Branches. Main Line.—The principal construction works done during the year are the alteration of the gauge from Amberley to Lyttelton, and the re-modelling and extending of the Christchurch and Lyttelton Stations. . Eyreton Branch Extension.—Thin line, which connects the Kaiapoi-Eyreton and KangioraOxford branches, is six miles in length, and the works are very light. It was opened in February. _ Opawa Branch.—A. large portion of this line was so seriously injured by a flood shortly after its opening in the beginning of 1877 that a reconstruction became necessary. The works were finished; and the branch reopened for its entire length, in August. New Works— -The new works most urgently required on the Canterbury railways are new workshops, which are proposed to be erected at Addington, and additional station accommodation almost everywhere. The Timaru Station in particular wants to be remodelled and extended, the traffic, having completely outgrown its capabilities. It would be advisable to proceed with the extension of the railway northwards_ from Amberley but a short section only can be proceeded with till the route beyond is finally determined. Another work of considerable importance to the railway system is the extension of the Malvern branch to the coal mines, a distance of six miles. It should be proceeded with at once. Mr. Conyers informs me that the use' of the Malvern coal instead of Newcastle in the locomotives on the Canterbury railways will save £3,000 per annum, at which rate the cost of the extension will be recouped in about four years. Waitaki-Invercargill Eailway and Branches. General.— At the end of last financial year the lengths not commenced and under construction consisted of— Mites. Moeraki Junction to Glendermid ... ... ... ••• ••• 46i Waipahi to Clutha ... ... ■•• ■•• ••• ••• 31? 78 Of this distance the following sections have since been opened: — ... Waipahi to Clinton, Ist November, 1877 ... ... •■• 9* Glendermid to Blueskin, 20th December, 1877 ... ... ... 10 Clutha Eiver to Balclutha, 22nd January, 187S ... ... ... H Blueskin to Waikouaiti, 7th May, 1878 ... ... ... ... 14| Moeraki Junction to Palmerston, 22nd May, 1878 ... ... 12i ■ 48| Leaving a balance unopened 0f... ... ... ••■ ••• 29^ Miles. Of this balance, 9 miles is between Waikouaiti and Palmerston, and 20J miles between Balclutha and Clinton. These are the only two links wanting to complete the railway from Amberley to the Bluff. It was confidently expected that the line between Dunedin and Christchurch, and at least 10 miles of the gap between Balclutha and Clinton, would have been completed by the beginning of this month, but an unprecedented continuance of bad weather retarded the works by at least six weeks 1 hope however, to see through communication established between Dunedin and Christchurch by the end ot August,'and between Amberley and the Bluff early in summer. As a considerable agitation has taken place throughout Otago, and more particularly in Dunedin, with reference to tho time occupied in the construction of the main line, I may explain that no undue delay has taken place since the works wore authorized. Tho Clinton-Clutha Section, 20J miles m length, was only begun in September, 1877, so, if completed in October next, the rate ot progress will have been upwards of 14 miles per month. Considering the magnitude of the works, this is by no means too little. With reference to the Dunedin and Moeraki Section the rate of progress has been considerably above ihe average in other countries, and I do not know any line in New Zealand that can bear comparison with it in this respect. For instance, the Dunedin and Clutha Eailway was authorized in the session of 1870; tho works were begun in March, 1871; and the line was opened in September, 1875 having thus taken 4| years to make. The Dunedin and Moeraki line was authorized in the session of 1873 ; the works were begun in March, 1874 ; and the whole line will be opened at tho verylatest in September next. It will thus have taken exactly the same time as the Clutha one, although the works are about twice as heavy, and the difficulties of location and construction m the same proportion. This will be seen by the"following statement giving the approximate quantities of the principal works on the two lines : — . _ ~ Clutha Railway. Moeraki Eailway. Location in bush country ...Miles. Nil „„„J?°. Earthwork ... ... cubic yards 800,000 1,500,000 Tunnelling lineal yards 4,356 5,676 Masonry cubic yards 5,000 23,000 Waitaki to Moeraki, with Branches— lt is proposed to extend the Awamoko branch across the Mairewhenua Eiver, a distance of about a mile. A vote was taken for the bridge last year, but the work is not yet done. The contract drawings arc, however, in hand. As recommended by Mr. Carruthers in the last annual report, it will soon be necessary to relay the Waiareka branch with heavy rails : those on it now are only 28 lb. per yard, which is altogether too light for the heavy traffic and steep gradients. . . The Oamaru Station has been found too small for the traffic; it will require considerable additions immediately.