Passenger Rail Locomotive Assembly Returns to Canada Through a $1.95 Billion Government of Canada Investment
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MONTRÉAL, July 29, 2026 /CNW/ -- Rail helped build Canada, connecting people and communities across vast distances and helping unite the country. Today, a modern and resilient passenger rail network is essential to supporting economic growth, strengthening Canadian industry, and keeping Canadians connected.
Today, the Honourable Steven MacKinnon, Minister of Transport and Leader for the Government in the House of Commons, joined by Mathieu Paquette, Interim President and Chief Executive Officer of VIA Rail Canada announced a $1.95 billion Government of Canada investment to renew VIA Rail's long-distance, regional and remote locomotive fleet while bringing passenger locomotive assembly back to Canada for the first time in decades.
The investment includes:
- $1.6 billion for the production of 45 new locomotives by Stadler, a leading Swiss rail manufacturer with a global centre of competence facility for mainline locomotives in Spain. Leveraging its global supply chain and Canadian suppliers, Stadler will complete the final assembly of up to 36 locomotives in Canada, marking the first time in decades that passenger locomotives for VIA Rail will be assembled domestically. This investment showcases the strength of Canada's economic partnership with Europe, combining world-class expertise with Canadian manufacturing to support innovation, strengthen supply chains, create skilled jobs, and deliver lasting economic benefits for Canadians.
- $357 million for VIA Rail to build a new assembly and maintenance facility in Montréal, Quebec, where the Canadian assembly of the locomotives will take place. Built by Pomerleau, the facility will also support the maintenance and operation of the new fleet at VIA Rail's Montréal Maintenance Centre over the long term.
Together, these investments will support the equivalent of 1,200 full-time jobs throughout the project, including skilled manufacturing, construction, engineering and long-term maintenance jobs, with significant economic benefits centred in Montréal and extending across Canada's rail supply chain.
The new locomotives, powered by hybrid battery-diesel technology with batteries supplied by ABB from its Saint-Laurent facility, will replace VIA Rail's aging fleet serving Canadian routes and will become North America's first hybrid-powered passenger locomotives. The battery systems will be used to optimize and reduce fuel consumption, providing an immediate efficiency gain while laying the groundwork for future zero-emission propulsion.
The investment will improve reliability, operational efficiency and service for Canadians while supporting domestic innovation and helping build a cleaner, more resilient transportation system.
Today's announcement marks the next phase in the Government of Canada's commitment to modernize passenger rail. By investing in Canadian assembly, new rail infrastructure and a modern locomotive fleet, the Government is strengthening Canada's rail manufacturing capacity, creating good jobs, and ensuring reliable passenger rail service for decades to come.
Quotes
"Today, for the first time in more than 25 years, we're bringing passenger rail locomotive assembly back to Montréal. This investment means skilled manufacturing jobs, stronger Canadian supply chains, and a modern fleet that will keep Canadians connected for decades to come. By combining Canadian expertise with world-class European innovation, we're strengthening our economy while building a more resilient passenger rail network for the future."
The Honourable Steven MacKinnon
Minister of Transport and the Leader of the Government in the House of Commons
"We thank the Government of Canada for its strong commitment to passenger rail. This major investment will help secure the future of long-distance, regional and remote passenger rail, allowing VIA Rail to continue fulfilling its national mandate and preserving essential connections for communities across the country. By building new rail capacity and specialized expertise in Canada, it will also strengthen our ability to serve Canadians for generations to come."
Mathieu Paquette
Interim President and Chief Executive Officer, VIA Rail Canada
"Our hybrid locomotive platform combines performance, reliability and sustainability. By integrating battery-assisted operation into a powerful long-distance locomotive, we are providing VIA Rail with a future-oriented solution that supports its environmental objectives while enhancing operational flexibility and passenger service."
Iñigo Parra, Executive Vice-President Division Spain
Quick facts
- Budget 2024 announced new funding for VIA Rail to replace its aging fleet on routes outside the Québec City-Windsor Corridor.
- This investment builds on Budget 2018 funding that allowed VIA Rail to replace its fleet in the Québec City-Windsor Corridor.
- VIA Rail Canada Inc. (VIA Rail) is a Crown corporation mandated to operate the national public passenger rail services on behalf of the Government of Canada, connecting major cities, regions, and certain remote communities across the country. Its objective is to offer a safe, accessible, efficient, reliable, comfortable, and eco-friendly passenger rail service that meets the needs of Canadian passengers.
- A free trade agreement (FTA) between Canada and the European Free Trade Association (EFTA), of which Switzerland is one of four members, came into force in 2009. This announcement marks one of the largest Canadian Crown corporation procurements ever awarded to a company headquartered in an EFTA member state.
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SOURCE Transport Canada
Contacts: Marie-Justine Torres, Press Secretary and Senior Communications Advisor, Office of the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, Ottawa, [email protected], 613-327-5918; Media relations, Transport Canada, Ottawa, 613-993-0055, [email protected]
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