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Canadian Pacific Railway Ltd. plans to spend between $950-million and $1.05-billion on capital projects this year, a substantial increase from last year's capital spending program.



Canada's second-largest railway said the improving economy is creating opportunities to make investments that will capture growth and maintain its core business.



"With strong demand projected in many of our commodity based businesses, this capital plan will enable us to meet our customer's needs and continue to lower our operating ratio to create a stronger franchise for the future," said CP chief financial officer Kathryn McQuade in a release.



Canadian Pacific disclosed few details about where it will spend its capital budget in Wednesday's announcement. Last May, it announced plans that it would spend between $750-million and $800-million on capital spending in 2010.



The 2011 budget includes $680-million to renew Canadian Pacific's basic track infrastructure and $200-million to increase volume and productivity.



There is also $80-million allocated to strengthen and upgrade information technology systems and $40-million to address capital regulated by governments, principally train control, Canadian Pacific said.



The company releases its next financial report on Jan. 28, when it releases results for the fourth quarter and full year ended Dec. 31.



Analysts estimate Canadian Pacific earned $1.10 per share in the fourth quarter, up from 94 cents per share a year earlier. Revenue is expected to be nearly $1.3-billion, up from just over $1.1-billion in the fourth quarter of 2009.



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