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To itra n ga-Opo tiki. Maunganui-Te Puke Section (13 mile* in length). —The subsidence of embankments mentioned in last year's report still continues. .Most of the banks are holding up fairly well with the exception of the long swamp, 50 in. 33 eh. to 52 m. 28 eh. Permanent bridges have been erected at 53m. 44 eh., 52 m. 28 eh., and 51m. 20 eh. Rails have been hud to Te Puke, 53 m. 77 cii. Quarrying and crushing have been steadily continued throughout the year, and ballasting operations pushed on. Ballasting is completely finished for 2 miles 50 chains, and a first lift is on throughout the section, except on the long swamp previously referred to. A tender has been accepted lor the erection of station buildings at Otaamatua, Papamoa, and Te Puke, ami a well-equipped workshop lias been erected at Mount Maunganui Station-yard. Te Puke - Paengaroa Section (length, 5 mile* 65 chains). —Fair progress has been made on this section, and the most of the earthworks, except the big Kaituna bank, are finished ready for platelaying. There have been 2 miles 1 •'! chains of fencing erected. Opotiki-Gisborne. Rakauroa Section (31 in. J/5 eh. to 38 in. 25 eh.). —Platelaying and fencing are complete. Two lifts of ballast have been put on throughout except on sidings. A steel-girder bridge on concrete piers over the Waikohu River at 37 m. 52 eh. has been erected during the year. Land-slides gave considerable trouble between 31 in. 35 eh. and 32 m. A new ballast-pit has been opened at Puha, and ballast obtained from it for Rakauroa and Matawai Sections. . Matawai Section (38 .... 25 eh. to fy tn. 10 eh.). —The earthworks on this section are finished. Several of the cuttings slipped badly, especially at 40 m. 25 eh., where the ground has slipped for several chains back from line. , ■• The tunnel at 42 m. 42 eh. has been lined with concrete, and the portals at both ends finished. All platelaying and fencing are finished, and two lifts of ballast have been placed on main line, and one lift in Matawai Station yard. At the latter yard four cottages have been erected. Motu Section (Urn. 10 eh. onwards). —The formation of this section is in hand up to 48 m., most of the cuttings being through. A 10 ft. circular culvert has been built at 46 m. 25 eh., and all other culverts are m place up to 47 m. 40 eh. This section is partly fenced up to 46 m. Gisborne-Napier. Ngatapa Section (Om. to 10 m. 29 eh.). —The earthworks are almost finished and all the smaller culverts are complete. The formation of the Ngatapa Station yard is in progress. The fencing of railway reserve is about complete. A survey has been made of a line and siding from main line to Patutahi Quarry. Waikura Section (10 m. 20 eh. onwards). —Three formation contracts, covering 50 chains of line, have been let and are now in progress. Eskdale Section (0 m. onwards). —During the year formation-work has been done from 6 m. 35 eh. to 7m. 35 eh., and from 7m. 50 eh. to Bm. 68 eh., and a culvert built at 7m. 59 eh. Some necessary fencing has been done between 7 m. and 8 m. 40 eh. A test pile has been driven near 1 m. 17|ch., in the vicinity of the proposed railway and road bridge. . ..„.,.-.•. A contract is being prepared for the construction of the first 2 miles of railway. Stratford-Main Trunk Railway. Western End. Pohokura Section (22 m. 65 eh. to 31m. Sfich.).— This section, 8 miles 55 chains in length, was handed over to the Railway Department on the Ist August, 1912. Whangamomona Section (31m. Sficli. to 37 m. 53 eh.).— -The formation-work is complete except for the lining of some water-drives and the construction of private crossings. Considerable extra work was occasioned by slips on the heavy sidelings between 34 m. 40 eh. and 3o m the slip at 35 m. being particularly bad. Seven steel-girder bridges between 3.5 m. 70 eh. and 37 m. 25 eh. have been erected during the year. Platelaying on main line has been completed to Whangamomona Station yard, and the ballasting to 37 m. 22 eh. . . A contract for the station buildings at Whangamomona is in progress, and should be completed in January. This section should then be ready for handing over to the Railway Depart--11 Tahora Section (37 m 53 eh. onwards).— -The earthworks up to 42 in. are nearly finished, and are in hand up to 44 m. 76 eh. Deviations are being made to avoid slips at 38 m. 10 eh. and 38 m. 50 eh. .■..-... The bottom heading of tunnel at 44 m. 40 eh. has been driven and the enlargement commenced Washed shingle and concrete blocks are being brought from Skinner Road ballast-pit. The tramway has been completed up to 44 m. 12 eh. near the tunnel. Wherever possible the tram has been laid on the railway formation with permanent-way materials. Passengers, goods, and construction material are carried on this tram. Bridges at 37 m. 61 eh. and 39 m. 43 eh. are in hand. One cottage is being erected at Kohuratahi Station and another is being removed there from Skinner Road ballast-pit.

11—D. 1.

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