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"Higher" is the key word to Canadian Pacific Railway's financial projections for 2007. As in higher revenue, earnings, capital spending and free cash flow.

CPR officials expect total revenue to increase between 4 percent and 6 percent — based on volume growth and rate increases — and diluted earnings per share to go up between 9 percent and 13 percent.

In addition, capital spending is projected to rise to between $885 million and $895 million compared with anticipated 2006 spending of $845 million.

However, total operating expenses are forecasted to increase as well, rising between 3 percent and 5 percent.

"Execution of our integrated operating plan is driving increased fluidity on our network and improving our operating ratio," said CPR President and Chief Executive Officer Fred Green in a prepared statement.