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Waitaki to Bluff Railway, with Branches. Main Line: Works on Open Line.—As in 1881-82, the works in progress on the line itself during the past year are few and unimportant, but the station works are of considerable magnitude. The former include no new work demanding special notice, and the old ones were dealt with in my last annual report. The most important construction-works in progress on the main line during the year were the stations at Dunedin, Invercargill, and Bluff, and the workshops at Hillside. The large reclamation contract for the Dunedin goods-station—44 acres —-which has been in progress since 1879, was practically completed in February; but a small portion at the southern end is not quite up to the proper level, so it had to be gone over again; this is now being done, and the whole work is expected to be finished in about two months. The second contract, for reclaiming about three acres at the northern end for a portion of the passenger station, was finished in July; and arrangements have been made with the Corporation under which the remainder of the reclamation in this place will be done with materials from the cutting in Dowling Street. An instalment of the new goods-sidings, to accommodate the coal traffic, and so relieve the Harbour Board's sections in Crawford Street, was ready in May, and the remainder of the station-yard is in progress. A contract for ballasting has been entered into ; it is proceeding vigorously, and the platelaying and other works which come after it are well in hand. A contract for the erection of four goods-sheds, of an aggregate length of 1,750 feet, was entered into at the end of May. Two of them—9oo feet—were completed considerably within contract time, and, judging from the present rate of progress, the same thing will occur in the case of the other two. Designs have been prepared for the bridge over the goods-station near Jetty Street. The piers are made of malleable iron, supported on concrete blocks, and the superstructure consists of two iron-plate girders, with cross-girders of the same materials, iron floor-plates, and a roadway of timber cubes. There are twelve spans of 55 feet; the roadway is 25 feet wide, with an 8-foot footpath on each side. It was at first intended to send Home for the ironwork in the usual way, but with the view of giving the local industry question a fair trial it is now intended to call for tenders for the manufacture of the bridge in the colony. Time will be given to import the materials, but all the work of making, fitting, and erecting is to be done in New Zealand. The bridge is a plain structure, made of ordinary forms of iron, no special machinery is required, and the labour of erecting is probably as great as that of making; consequently the conditions are very favourable to the colonial manufacturer. A contract is about to be advertised for goods offices in connection with the new station at Dunedin, and designs for the passenger-station building are in hand. Extensive alterations and improvements, amounting to an entire remodelling of the station, are in progress at Invercargill. The circular engine-shed in course of erection at the end of last year was finished in February. A contract for the erection of a goods-shed 300 feet long was entered into in December; the work is expected to be finished next month. Tenders have also been accepted for coal-store and coal-loading appliances, and for the various works connected with the water supply. As. the rearrangement of the yard and buildings interfered with the traffic, the work is being done by the Working Railways Department. Improvements and extensions are also in progress at the Bluff Station. They consist mainly of a coal-store, additions to sidings and buildings, and a general re-arrangement and enlargement, to meet the increasing demands of the traffic. Large additions are being made to the workshops at Hillside. The carriage-shed is doubled, the addition being 120 feet long by 95 feet broad; and the main shop is increased by a block of building 230 feet long by 48 feet broad. The former is now practically finished, and the latter is expected to be finished about the end of May. The Locomotive Department is putting up and rearranging the machinery and fittings. In addition to the principal works above described and others of a minor character that it is unnecessary to enumerate, the following have been carried out or put in hand on the main line during the past year: Filling lagoon at Oamaru, extra lining in tunnels, station approaches at Mihiwaka, retaining-wall at Waipahi; general improvement of stations at Burkes, Ravensbourne, Burnside, Arthurton, Pukerau, Otakerama, Waikaka, and Gore; refreshment-rooms at Palmerston, stationmasters' houses at Pukerau and Gore, four workmen's cottages at various places, eleven shelter-sheds at various places; cattle-yards at Waikouaiti, Waihola, and Gore; water service at Clinton; additions to sidings at Oamaru, Deborah, Palmerston, Waitati, and Milton; and the conversion of blind sidings into loops on the whole length of the line. Old Branches. —The more important works in hand on these lines during the year are as follow : On the Duntroon and Ngapara Branches—Relaying with heavier rails, and general improvements of a minor character at stations : about 9 miles have been relaid on the Duntroon, and 10 miles on the Ngapara line. On the Port Chalmers Branch—the completion of small works, such as fencing, metalling approach, approach-roads, and lighting at the station and wharves at Port Chalmers. A contract is, however, in preparation for an extension of the George Street Wharf, and the construction of a large crane.