On July 29, 2026, Canada announced a $1.9 billion investment to replace 45 of Via Rail’s aging locomotives and build a new assembly and maintenance facility in Montreal. The federal government allocated $1.6 billion for the locomotive replacements and $357 million for the new facility, which aims to enhance rail service reliability and maintenance efficiency.
Stadler to Build New Hybrid Locomotives
The new trains will be constructed by Switzerland-based Stadler, with the first nine locomotives assembled in Spain. The remaining 36 units will be built in Canada, where workers will be trained by their Spanish counterparts. The locomotives will feature hybrid technology, marking the introduction of
North America’s first hybrid trains.
Aging Fleet Faces Operational Challenges
Via Rail’s current fleet consists of 52 General Motors F40PH-2 locomotives dating back to the late 1980s. According to CEO Mathieu Paquette, the extreme Canadian climate complicates maintenance, with trains encountering temperatures from 10°C in London, Ontario, to as low as -35°C upon arrival in Quebec City. Via Rail spokesperson Karl Helou described growing maintenance demands required to keep the existing fleet operational, emphasizing safety but acknowledging increased effort.
Improving Service Reliability and Job Creation
Transport Minister Steven MacKinnon said the investment is expected to improve service reliability and generate 1,200 full-time jobs. He stated, “Locomotive assembly is returning to Canada.”
Paquette highlighted the new fleet’s enhanced performance, reliability, and environmental benefits, including reduced emissions and fuel consumption. The fleet replacement excludes the Windsor-Quebec City corridor, which has separate plans involving Siemens Charger locomotives and the future Alto high-speed rail line.
Background on Current Fleet and Service Issues
Via Rail’s existing locomotives have deteriorated over time, resulting in delays and higher maintenance costs. The corporation’s 2024 annual report confirms most non-Windsor-Quebec City equipment has reached the end of its operating life. Canada’s auditor general reported that Via Rail’s on-time performance fell to around 30% in the first quarter of 2025. MacKinnon noted difficulties caused by shared tracks with
cargo trains but expressed expectations for improved reliability following the new investment.
