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Add Canadian Pacific Railway to the list of Class Is that registered stellar financial performance in the first quarter. Today, CPR reported it more than tripled quarterly net income to $81 million and increased revenue 14 percent to a record $1 billion compared with first-quarter 2004. Revenue growth was driven by 44 percent and 23 percent gains in coal and grain revenue, respectively.

In addition, the railroad’s quarterly operating income rose 54 percent to $179 million and operating ratio improved 4.5 points to 82.4.

However, quarterly operating expenses of $835.4 million increased 8 percent primarily because of escalating fuel costs. CPR plans to increase the base of business covered by fuel surcharges to offset diesel prices.

“We delivered greater operating leverage, taking more of the revenue growth to the bottom line,” said CPR President and Chief Executive Officer Rob Ritchie in a prepared statement. “Productivity and fluidity continued to improve as freight car velocity increased and our team handled more freight than in any previous January-to-March period."

Looking ahead, CPR expects to grow revenue between 12 percent and 14 percent in 2005. Annual capital investments are projected to total between $900 million and $920 million, including a previously announced $160 million capacity expansion program.