(Adds details on Cenovus deal, production)
Oct 4 (Reuters) - Canadian Pacific Railway Ltd estimated third-quarter profit above Wall Street expectations and raised its full-year earnings forecast on Thursday, as Canada's No.2 railroad operator benefits from a surge in shipments.
Rail capacity has been tight in the country against the backdrop of oil companies looking to transport crude through railways as production surges and pipelines run in full capacity.
Canadian Pacific said it expects to report an adjusted profit of C$4.10 per share for the third quarter, while analysts on average were expecting C$3.64, according to Thomson Reuters I/B/E/S.
The company also said it expects full-year adjusted profit to grow in excess of 20 percent, up from an earlier forecast for a low-double digit growth.
Canadian Pacific released the preliminary results ahead of its investor day.
Canada's crude by rail exports hit record levels above 200,000 barrels per day (bpd) in June. They are expected to rise to more than 300,000 bpd by year end and continue climbing sharply through 2019.
Canadian Pacific is also expected to benefit from a deal with Cenovus Energy Inc under which the oil producer would transport crude on the railroad operator's network beginning in the second quarter of 2019. (Reporting by Laharee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila)