The Government of Canada announced a $1.9 billion investment on July 29, 2026, to replace 45 aging Via Rail locomotives and build a new train assembly and maintenance facility in Montreal, Quebec. Transport Minister Steven MacKinnon said $1.6 billion will fund the locomotive fleet renewal and $357 million is allocated for the new Montreal facility.
Stadler to Build First Hybrid Trains in North America
Swiss manufacturer Stadler will produce the new locomotives, with the first nine units built in Spain and the remaining 36 assembled in Canada after Canadian workers receive training. The new trains are expected to be the first hybrid locomotives introduced in North America. The project
will create around 1,200 full-time jobs. The new hybrids will include Canadian-made batteries, supporting domestic manufacturing.
Challenges with Current Aging Fleet
Via Rail currently operates a fleet of 52 General Motors F40PH-2 locomotives, introduced in the late 1980s. These trains face increasing maintenance complexity due to extreme weather conditions across Canada, with routes experiencing temperatures from 10 degrees Celsius to minus 35 degrees Celsius. The 2024 Via Rail annual report highlighted that most rolling stock outside the Windsor-Quebec City corridor has reached the end of its operating life, causing reliability deterioration, delays, and higher maintenance costs.
Operational Impacts and Maintenance Efforts
Via Rail CEO Mathieu Paquette stated the aging fleet
presents operational challenges, but the new hybrid locomotives will improve performance, reliability, and reduce emissions and fuel use. Paquette noted the significant temperature variations along routes, impacting maintenance demands. Via Rail spokesperson Karl Helou acknowledged that the existing locomotives remain safe but require exponentially more effort and expertise to maintain as they age.
Exclusions and Corridor-Specific Plans
The locomotive replacement excludes the Windsor-Quebec City corridor, where Via Rail is separately modernizing its fleet with Siemens Charger locomotives. The first Siemens Charger units entered service in 2022 in preparation for the future Alto high-speed rail line planned for that corridor.
Official Statements on Service Improvements
Transport Minister MacKinnon emphasized that
the investment aims to enhance reliability and customer service experience on Via Rail routes. He said, “Locomotive assembly is returning to Canada,” and highlighted the importance of reliability to increase ridership. Paquette added the new locomotives will provide better performance, and Helou confirmed the replacement is necessary due to escalating maintenance challenges.
Unknowns About Timelines and Specifications
Details on the exact timelines for fleet replacement and completion of the Montreal facility have not been disclosed. Specific technical details and cost savings related to the new hybrid locomotives were also not provided. Via Rail plans to announce passenger car replacements in the future.
