Via Rail announced a $1.9 billion federal investment on July 29, 2026, to replace 45 aging locomotives and establish a new assembly and maintenance facility in Montreal. The package allocates $1.6 billion to procure the locomotives and $357 million for constructing the Montreal facility aimed at modernizing the fleet.
Stadler to Build Hybrid Locomotives with Canadian Assembly
Switzerland-based Stadler will manufacture the new locomotives, with the first nine units built in Spain. Canadian workers will be trained by Spanish counterparts to assemble the remaining 36 locomotives domestically. The project is expected to create 1,200 full-time jobs in Montreal. These new trains will be North America’s first hybrid locomotives,
incorporating Canadian-made batteries.
Aging Fleet and Maintenance Challenges
Via Rail currently operates 52 General Motors F40PH-2 locomotives from the late 1980s. The fleet faces increasing maintenance challenges exacerbated by extreme weather conditions, including temperature swings from 10 C to -35 C on routes such as London, Ontario to Quebec City. Via Rail spokesperson Karl Helou said maintenance demands grow exponentially as the fleet ages. Canada’s auditor general reported that Via Rail’s on-time performance fell to 30% in the first quarter of 2025, reflecting deteriorating reliability.
Exclusion of Windsor-Quebec City Corridor
The locomotive replacement excludes the Windsor-Quebec City corridor, where Siemens Charger locomotives are deployed or planned as part of the
federal government’s Alto high-speed rail initiative. Via Rail began replacing trains in that corridor in 2018, with the first new Siemens units entering service in 2022.
Official Statements on Service Improvements
Transport Minister Steven MacKinnon emphasized the return of locomotive assembly to Canada with this investment and projected enhancements in reliability and customer service. He said, “Locomotive assembly is returning to Canada.” Via Rail CEO Mathieu Paquette stated the new hybrid trains will provide better performance and reduce emissions, adding, “An aging fleet comes with challenges. Today’s announcement gives us the tools we need to do better by our passengers.” He also highlighted the hybrid
locomotives’ environmental benefits and operational reliability improvements.
