27 October 2004 CPR Expects West Expansion Approval Soon Canadian Pacific Railway Ltd., fresh off doubling its third-quarter profit, said yesterday that its proposed $500-million expansion of its Western Canadian operations could be approved within weeks.   CPR executives are in talks with the federal government on ways to ensure that the railway has control of new lines planned in the West. There has been speculation that Ottawa may force CPR to allow rival railways access to the new tracks, but CPR president and chief executive officer Rob Ritchie said he's encouraged by the talks.   "It is made obviously more difficult, given a minority government," Mr. Ritchie said. "But it's going the right way, I would say. That's without pre-empting what we're going to say in November" in a meeting with analysts to discuss the phased-in expansion plans.   With trade booming with Asia, especially China, demand for rail services has been boosted, prompting CPR to examine doubling its tracks on certain western stretches starting next spring.   "We're going to just have to see how it evolves. A lot can happen in politics in a week, as they say, and we're making progress and we just have to finish it off," Mr. Ritchie said in a conference call.   In the third quarter, Calgary-based CPR thrived on Asian trade and recorded a large currency exchange gain as it racked up a $176.5-million profit, compared with $91.3-million a year earlier. Share profit jumped to $1.11 from 57 cents while revenue rose to $990-million from $904-million.   The latest quarterly profit got a boost from a $73-million after-tax gain on foreign exchange on long-term debt, mostly arising from the strengthening Canadian dollar versus its U.S. counterpart.   On the downside, however, a late harvest delayed grain shipments.   CPR's diesel surcharges and fuel price hedging program offset three-quarters of the effects of $25-million in higher energy costs.   Although oil prices surpassed $50 (U.S.) a barrel late in the third quarter, CPR hedged 25 percent of its fuel bills at $25.75 a barrel.   "As the hedging position declines going forward, fuel cost may become a significant headwind," UBS Securities Canada Inc. analyst Fadi Chamoun said in a research note.   Excluding one-time items, CPR posted a $104-million (Canadian) profit, or 65 cents a share - a penny a share higher than the consensus estimate of 64 cents in a poll of analysts by Thomson First Call. The railway had a $95-million profit or 60 cents a share excluding non-recurring items a year earlier.   CPR shares rose 7 cents to close at $33.96 yesterday on the Toronto Stock Exchange.   "A continuing strong economy - we need to have faith in that and the forecast, giving us the required confidence that the Asian boom has legs," Mr. Ritchie said.   CPR expects revenue growth of 6 to 7 percent in the fourth quarter, said Fred Green, its new chief operating officer. Intermodal business is brisk, where consumer products are shipped in containers that can be transferred between ships and railways and trucks.