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In the second quarter, Canadian Pacific Railway overcame a more than $60 million drop in coal and potash revenue to boost total revenue 2 percent to $989.4 million compared with the same 2005 period. The Class I posted gains in grain, intermodal, automotive, and industrial and consumer products traffic, which offset carload decreases in the two bulk commodities.

“With the success of our balanced scheduled railroad and our recent network capacity investments, we are well positioned for the second half of the year when bulk volumes are expected to increase,” said CPR President and Chief Executive Officer Fred Green in a prepared statement.

Also during the quarter, CPR’s net income rose more than 300 percent to $331 million and operating ratio improved 0.4 points to a record 75.1 compared with second-quarter 2005. Operating expenses totaling $744 million increased 14 percent year-over-year, but decreased 2 percent excluding fuel costs, CPR said.

In the first half, CPR’s total revenue of $1.9 billion increased 6 percent, net income of $429.5 million rose about 140 percent and operating ratio improved 1.6 points to 77.2 compared with the same 2005 period. Operating expenses totaling $1.5 billion went up 3.7 percent.