Canada’s federal government will invest $1.9 billion in Via Rail’s locomotive fleet renewal and a new train assembly and maintenance facility in Montreal, announced on July 29, 2026. The $1.6 billion portion of the funding will replace 45 aging locomotives while $357 million will construct the new maintenance plant.
Locomotive Manufacturing Plan and Job Creation
The new locomotives, the first hybrid trains in North America, will be built partially abroad and domestically. Stadler, the Switzerland-based manufacturer, will assemble the first nine units in Spain. The remaining 36 units will be produced in Canada, after Canadian workers receive training from Spanish staff. The project is expected to
create 1,200 full-time jobs. The hybrid trains will use Canadian-made batteries to enhance performance and sustainability.
Aging Fleet Challenges and Weather Impact
Via Rail’s current locomotives include 52 General Motors F40PH-2 units dating back to the late 1980s. Maintaining these older units has become increasingly challenging, notably due to extreme weather. Temperatures on routes vary drastically, from 10°C in London, Ontario in winter mornings to -35°C in Quebec City, complicating upkeep. The increased maintenance workload grows exponentially as the fleet ages.
Official Statements on Goals and Benefits
Transport Minister Steven MacKinnon said, “Locomotive assembly is returning to Canada,” emphasizing the federal government’s aim to improve Via Rail’s reliability and create jobs. Via
Rail CEO Mathieu Paquette described the new hybrid locomotives as providing “better performance, reliability, and will allow us to reduce our emissions and fuel use.” Paquette added that the updated fleet gives the company the tools “to do better by our passengers.”
Fleet Replacement Scope and Existing Corridor Plans
The new locomotives will replace Via Rail’s fleet nationwide except on the Windsor-Quebec City corridor. That corridor is excluded due to planned development of the Alto high-speed rail line. Via Rail had announced in 2018 a replacement strategy using Siemens Charger locomotives for that route, with initial trains entering service in 2022.
Auditor General Findings and Expected Service Improvements
Canada’s auditor general reported that Via
Rail’s on-time performance has declined over the past decade, dropping to only 30% in early 2025. MacKinnon acknowledged operational challenges, particularly on shared freight routes, but predicted service reliability improvements from the new investment. He stated, “Reliability is one of — if not the — essential ingredient in attracting riders.” Via Rail expects the new hybrid fleet to help reverse current delays and reduce operating costs.
