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Next year, Canadian Pacific Railway’s revenue will go up between 6 percent and 8 percent compared with 2005 because of robust traffic demand, rate increases and higher yields. That’s the projection CPR’s top executives plan to share with a Webcast audience today during the railroad’s fourth annual analyst workshop in Vancouver, British Columbia.

Executives expect strong traffic demand for bulk commodities, coal, potash, grain exports and sulphur. In addition, truckers’ rising fuel prices and continuing driver shortages should drive domestic intermodal traffic and enable the railroad to raise rates.

Although traffic is expected to increase, CPR’s capital spending is projected to decrease. The railroad plans to spend between $810 million and $825 million next year compared with between $900 million and $920 million in 2005 primarily because CPR increased spending this year to expand capacity in western Canada.

Based on projections that oil prices will average $58 per barrel and the exchange rate will average $1.18 per U.S. dollar, executives expect CPR’s 2006 earnings per share to range between $3.70 and $3.85 compared with 2005’s $3.15 to $3.25 range.