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Awamoko Branch. —The only work in progress during the past year is the Marewhenua Bridge, which is now all but completed. The works have been carried out in a very satisfactory manner. Green Island Branch Extension. —This line, originally constructed for coal traffic by the Provincial Government, has been extended to tho Brighton Road, a distance of half a mile. It is now intended to convey passengers as well. With the exception of the station arrangements the works are practically finished. Tapanui Branch. —This contract embraces all the works required in the completion of the railway, including the supply of permanent-way materials. The local works are in a forward state, and the rails and fastenings have arrived. The formation through tho lower Pomahaka Gorge is finished, also a small tunnel that occurs at this place. Plate-laying on the first portion will commence immediately. Altogether, I think the works will be completed in contract time. WINTON-KINGSTON RAILWAY. The last section of this railway from Fairlight to Kingston, a distance of 9 miles, was opened on the 10th July, 1878, and the few works that remained unfinished at the end of last year have now been completed. They comprised the pier at Kingston and some minor station works. Western Railways. Riverton Branch. —After innumerable delays this line was opened for traffic on the 9th June. It is laid with the 28-lb. rails originally imported for this purpose by the Provincial Government. They are altogether too weak for anything but the lightest traffic carried at the lowest speed. It would be advisable to make arrangements for replacing them with 40-lb. rails at the earliest convenience. Otautau Branch. —The time for the completion of this line expired on the 26th May, but it will still take about three months to finish. The earthwork and bridging are done, and also 7-J miles of platelaying ; but the ballasting and station works are behind time. The contractor has pushed on the works vigorously in the face of considerable difficulties ; and, as the original time was altogether too short, he is entitled to some little consideration. Riverton-Orepuki Branch. —A contract for the completion of this line has just been entered into It is one of the branch railways commenced by the Provincial Government of Otago. Rolling-stock. Large quantities ot rolling-stock of all kinds have arrived in the colony during the past year, and further orders are being fulfilled. I believe these will meet the requirements of the present lines for some years. Railways authorized in 1878. General. —Your instructions to proceed with the works on these lines were not received till December ; but since that time surveys have been made and contracts prepared for twenty-one sections. Contracts are entered into for fifteen of these, and four are being done by piecework ; the remaining two are now advertised for tender. As the annual list of contracts gives the necessary details, I need not repeat them here. The statements attached to the general plan sent witli each contract give a description of the lines and works. From these it will be seen that the new lines are in every respect equal to, if not better than, the present ones. In no case has the ruling gradient been made steeper than 1 in 50. The time that has elapsed since the great majority of the contracts were entered into is so short that little work has yet been done on the new lines, the following being the only exceptions worth noting:— Hokitika-Greymouth Railway. —Hampden Street Contract and Paroa (piecework) Section nearly finished. Greymouth Contract progressing favourably. Amberley-Cook Strait Railway — Waipara Contract. —The length of this section is 7 miles, out of which the formation on 3 \ miles —the lightest half—is finished. The other works are all in progress, though somewhat behindhand. Shag Point Branch. —Although included among the Government railways, this is in reality a private one. It is a mineral line, belonging to the Shag Point Coal Company. It connects the coal mine with the Main Trunk Railway, its length being 1-j miles. The works, have been finished under the direction of tho Company's engineer in a very satisfactory manner. The line was opened for trafficin June. Pahncrston-Waihemo Branch. —Although only begun in May, good progress has been made with the works on this line. Clutha-Catlin's River Branch. —Exactly in the same position as the preceding one. Otago Central Railicay, Wingatui Contract. —A vigorous commencement has been made with the works, a large number of men being employed. Edendale-Toitois Branch, Wyndham Contract. —About 6,000 cubic yards of earthwork are done, and large quantities of materials are provided. ROADS AND BRIDGES. Nelson District. Molueka Bridge and Approaches. —These works were finished early in the year. Road, Tophouse to Tarndale. —This work is now almost completed. It consisted of repairing an old road or track, and making diversions extending over a distance of twenty miles. Wairoa Bridge. —Progressing favourably; should be finished about the end of September.

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