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Kaihu Valley Railway Extension. (19 m. 17 oh. to 23 m. 71 eh. ; length, 4 miles 54 chains.) No construction work has been carried out on this section, but a considerable amount of treeplanting was carried out on the railway reserve during the winter months, this work being executed by officers of the Forestry Department. North Auckland Main Trunk Railway. Huarau Northwards. Okaihau Section (16 m. 25 eh. to 24 m. 25 eh. ; length, 8 miles 20 chains). —The ballasting of this section, erection of stone walls, stone drains, &c, have been completed. A contract was let for the erection of station-buildings at Okaihau and completed ; the whole section being handed over to the Railway Department in October last. (See photo.) Paparewa Section (90 m. 30 eh. to 92 m. 6 eh. ; length, 1 mile 56 chains). —The principal work carried out on this section during the period has consisted of maintenance. Several of the larger cuttings, chiefly the north approach to the Huarau Tunnel, has given considerable trouble, necessitating the provision of large water-table drains. The completion of the Paparewa station-yard formation and the erection of the station-buildings is well advanced, all the timber and materials being on the ground. Tho goods-shed has been erected and also the stockyards and tank-stand foundations. A co-operative contract is being let for the erection of the remaining buildings. The ballasting of the Paparewa yard and the metalling of the Paparoa-l'aparewa Railway-station Road are being pushed on. By the completion of the above road the greater part of the Otamatea County will be brought within easy reach of the railway. Mareretu Section (92 m. 6 eh. to 96 m. 20 eh. ; length, 4 miles 14 chains). —The main features of this section were the difficulties presented by the slip-cutting at 92 m. 15 eh., slip-bank at 93 m. 14 eh., slip-cutting at 94 m. 76 oh., slip-bank at 95 m. 2 eh., and several smaller slips. It was early seen, where deviation was impracticable, that a comprehensive scheme of stone drainage had to be taken in hand. This was done during the summer months, and it was gratifying to find that, where so much of the opened lino suffered during the recent floods, these portions stood the test and showed practically no movement. Almost the whole of the section has received its third lift of ballast, and the principal work yet to do consists of the metalling in Mareretu yard and approach roads. An ovorbridge was constructed at 92 m. 49 eh., and a subway at 92 m. 2 eh. At Mareretu station-yard four cottages stockyard, platform, and loading-bank are completed, piles have been driven for the goods-shed, and it, together with the station-building, is well in hand. Waikiekie Section (96 m. 20 eh. to 107 m. 28 eh.; length, 9 miles 66 chains). —The formation work on this section has been confined to the general clean-up of the section and the shifting of slips. Three steam-shovels have been engaged for eight months of the year lightening tho batters of the cuttings at 97 m. 10 eh., 100 m. 8 eh., and 100 m. 45 eh. The material excavated has been, where possible, used for forming the Taipuha station-yard and approaches. Numerous small slips where steam-shovels could not operate have been dealt with by hand. Large stone drains have been put in at 102 pa. 11 eh. and 105 m. 64 eh. to stabilize the fillings, which were slipping badly. The access road-bridge at Taipuha station-yard, 240 ft. long, road-bridge at 101 m. 18 eh., and overbridge at 100 m. 35 eh. were completed. Tho railway-bridges at 104 m. 2 eh., 104 m. 34 eh., and 106 m. 75 eh. were closo-sleepered. Two and a half miles of second-lift and three and a half miles of third-lift ballasting were completed. The Waiotira station-yard was practically finished, and a considerable amount of ballast placed in Taipuha and Waikiekie station-yards. Two miles of fencing were erected. The strengthening of the Waikiekie Tunnel, where rendered necessary owing to the deformation of the lining due to the swelling of the ground, is in hand. Supplies of timber for the station-buildings on this section have been received from the Department's sawmill at Donnelly's Crossing, and the erection, which is being carried out by co-operative contract, is proceeding satisfactorily. At Waikiekie the shelter-shed, goods-shed, platform, and loading-bank are practically complete. At Waiotira one platelayer's cottage, large station-building, engine-shed, turntable foundation, ash-pit, coal-shed, 5 chains of platform, loading-bank, stockyards, and 6,000-gallon vat have been completed. As nearly all the buildings are on embankment, it was necessary to carry all the structures on totara piles, 470 having been driven. Arrangements are in hand to put in sidings to the Waikiekie Co-operative Company's limeworks, and during the current season the company propose to crush and pulverize limestone for consignment to various stations along the northern lines north of Helensville. Kirikopuni Section (107 m. 28 eh. to 120 m. 0 eh.; length, 12 miles 52 chains). —On this section a vigorous construction policy has been adopted during the year, particularly in the formation of main-line culverts and tunnels, and the obtaining of timber and ironwork for the many bridges, the object being to co-ordinate the completion of the formation works with the piercing of the Tokatoka and Omana Tunnels, and enable platelaying and ballasting to proceed uninterruptedly in the coming spring. On the first five miles north of Waiotira the formation work, as indicated on the plans, is fully three-quarters complete, but the heavy winter rains have done considerable damage, and it is probable that a fair amount of slip trouble will be experienced. The work on this portion was undertaken by three methods : Between 107 m. 7 eh. and 109 m. 15 eh. four steam-shovels wero employed in the heavy work; on the next half-mile, where the formation is in short ridge cuts and fills, hand labour was used ; whilst beyond, where access was difficult, plough-and-scoop teams were employed to advantage. The formation works between 112 m. Och. and 117 m. 66 eh. have been completed, with steam-shovels and plough-and-scoop teams. Steam-shovels are actively engaged in the various cuttings