The Canadian federal government announced a $1.9 billion investment to replace 45 aging Via Rail locomotives and build a new assembly and maintenance facility in Montreal, Transport Minister Steven MacKinnon said on July 29, 2026.
Locomotive Replacement and Manufacturing Plan
Out of Via Rail’s current fleet of 52 locomotives, 45 will be replaced. The $1.6 billion locomotive replacement contract goes to Swiss company Stadler. The first nine locomotives will be produced in Spain, with the remaining 36 units assembled in Canada by workers trained by Spanish experts.
The new locomotives represent the first hybrid trains planned for operation in North America.
Challenges with Aging Fleet
Via Rail operates General
Motors F40PH-2 locomotives that have been in service since the late 1980s. The fleet continues to function safely but faces exponentially increasing maintenance demands. According to Via Rail spokesperson Karl Helou, aging equipment and extreme weather conditions create significant obstacles in upkeep.
Via Rail CEO Mathieu Paquette highlighted operational challenges caused by temperature variability on routes, citing conditions ranging from 10°C in London, Ontario to -35°C in Quebec City. Stadler’s industrial vice president Miguel Cerdá said the new trains are built to operate in temperatures as low as -50°C.
Recent deterioration in reliability has contributed to delays and rising operational
expenses, as noted in Via Rail’s 2024 annual report.
Expected Impact on Service and Environment
The hybrid locomotives are designed to offer better performance and reliability while reducing emissions and fuel consumption, said Paquette. Transport Minister MacKinnon emphasized the government’s goal of improving customer service and reliability to attract more riders.
Via Rail’s current on-time performance was reported at about 30% in early 2025, partly due to shared tracks with cargo freight trains, a point noted by Canada’s Auditor General and recognized by MacKinnon.
Jobs, Corridor Exception, and Official Statements
The $357 million assembly and maintenance plant in Montreal will create approximately 1,200 full-time jobs. The investment does not include the Windsor-Quebec
City corridor, where Siemens Charger locomotives were introduced in 2022 as part of the planned Alto high-speed rail line.
Transport Minister Steven MacKinnon stated, “Locomotive assembly is returning to Canada.” He added that the government expects Via Rail to improve reliability and customer experience through this investment.
Via Rail CEO Mathieu Paquette said, “An aging fleet comes with challenges. Today’s announcement gives us the tools we need to do better by our passengers.” In his view, the new hybrid locomotives will reduce emissions and fuel use while enhancing reliability and performance.
Karl Helou noted that the current fleet is safe
but requires extensive maintenance efforts, which the new locomotives will help optimize. Miguel Cerdá of Stadler highlighted the trains’ capability to withstand temperatures down to -50°C.
