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The southern portion of this line, extending from Bluff Harbour to Green Hills, a distance of 5½ miles is being constructed under contract with Messrs. Ross and Aldrich.

With one exception, all of the embankments have been closed, a length of probably not more than 140 yards of embankment No. 14, which is still in progress, remains to be completed; its height does not exceed 12 or 13 feet, with the exception of dressing slopes and securing those on the seaward face, the above constitutes the only embanking work remaining to be done on the contract.

The excavations still to be completed on this contract are, cutting No. 9, of which a small part has still to be taken down to the formation level, and some parts of the slopes to be removed. Cutting No. 8, of which a little excavation has still to be done; and cutting No. 6, being the part of the Greenhills rock cutting, included in this contract of this work, all of the material has been removed, with the exception of about 80 yards at the north end of the contract, where a depth of 4 or 5 feet still remains to come away.

Green Hills: at the south end of this cutting the rock has been taken out within four or five feet of the full depth; at the north end of the cutting, a length of about 90 yards is not quite down to the level of forming.

This excavation, partly in Mr. Davies’ contract, and partly in that of Messrs. Ross and Aldrich, and which has been the heaviest work on the line, is now within a moderate amount of being completed.

In cutting No. 4, a gullet, nearly to the full depth, has been carried through the southern portion, nearly half a mile in length, the material remaining is nearly all gravel, and will be used for ballasting the line to the southward, the northern part of this cutting, about ¼ mile in length, is completed. In cutting No. 2, there has only to be removed a small quantity of ballasting material, from the bottom and slopes. In cutting No. 1, a gullet has been cut through the southern portion, about 180 yards in length; the slopes of this small part, of which the average depth is not over 5 or 6 feet, are still to be removed, the other parts of this cutting, except a little ballast to be taken from the slopes, have been completed.

Annan-street cutting is at present in progress, and will probably be completed in the course of a few days.

PERMANENT WAY.

Permanent way has been laid on several parts of this contract, amounting in all to about one third of the whole length; sand has in several parts of the line been used for ballast; where this has been done the contractor will have to substitute gravel or other proper ballasting material.

The contractors have latterly shown considerable energy in pressing forward the works. The work still to be done may be completed, and this portion of the line fit for traffic in a few weeks.

The continuation of the line from Green Hills to Invercargill, and the Mokomoko branch forming contracts Nos. 1 and 3, and the part within the station ground, a total length of 14½ miles, are being executed under contract with Mr. Davies.

The bridges and culverts on these contracts have in all cases been completed, with the exception of the deck planking. The fencing has been erected where necessary, excepting at Invercargill, from Crinan-street northward, a distance of about ¼ mile.

The earth works generally are in a forward state. In none of the excavations does any considerable quantity remain, with the exception of cutting No. 6, at Green Hills.

Of the embankments remaining to be completed on this part of the line, there only require special notice. Embankment No. 7, at Green Hills, of which a length of 20 or 30 yards, south of the bridge has still to be raised about 6 feet, north of the bridge a moderate quantity has still to be made up.

Embankment No. 2. At two points north of Mokotua creek two small portions are still to be completed; these are of small extent, and may be finished in a few days.

Embankment No. 1. Of which at the south and about 700 yards in length have been formed. And at the north end, where the work is now in progress about 450 yards in length have been done, leaving a gap between of about 400 yards long, of which however a considerable portion has been thrown up from side cutting.

The portions of these contracts which have been ballasted are at the following places on embankments Nos. 5, 4, 3, 2 and 1, and in excavations Nos. 4, 2, and 1 in all a length of about 4¼ miles, being nearly one third of the whole. In many places the ballast is of good quality, but