On September 3, 2026, Canada announced a C$4.7 billion investment to produce 313 new passenger rail cars for VIA Rail’s long-distance, regional, and remote services. The order includes a 15-year technical support agreement valued at nearly C$700 million and will bring manufacturing back to Canadian soil after four decades.
Manufacturing Locations and Domestic Production
Alstom, Canada’s sole passenger train producer, will design and engineer the rail cars in Saint-Bruno-de-Montarville, Québec. The carbodies will be built in La Pocatière, Québec, and final assembly will take place in Thunder Bay, Ontario. Prime Minister Mark Carney announced the order at the Thunder Bay plant, marking the first domestic
production of VIA Rail passenger cars in 40 years.
Passenger Car Types and Fleet Modernization
The order comprises nine car types: coach, sleeper, accessible, berth, prestige, panorama, dome, dining, and baggage cars. Sleeper cars form the largest category, followed by coaches. The rail cars, belonging to Alstom’s Adessia family, are engineered for Canada’s extreme climates and will incorporate cybersecurity measures. First deliveries are expected in 2031, with full completion by 2035. The renewal replaces equipment more than 70 years old, including cars that are 77 years old.
Routes Covered and Community Impact
The new fleet will serve eight routes outside the Québec City–Windsor Corridor, connecting nearly 400 communities across eight provinces.
These include Montréal, Halifax, Gaspé, Jonquière, Senneterre, Toronto, Vancouver, Churchill, Prince Rupert, Jasper, Sudbury, and White River. The routes provide essential service to regional, remote, and many First Nations communities where affordable alternatives are limited.
Job Creation, Economic Impact, and Procurement Compliance
Alstom anticipates the project will create or sustain up to 670 direct Canadian jobs and hundreds of indirect or induced jobs. The investment is expected to contribute over C$1.6 billion to Canada’s GDP. The procurement aligns with the federal Buy Canadian Policy, with increased use of Canadian steel and supplier participation. The government views this as a strategic effort to strengthen domestic employment and reduce
reliance on overseas manufacturing.
Official Statements and Union Response
Mathieu Paquette, Interim President and CEO of VIA Rail, said: “Today’s announcement marks a defining step in shaping the future of VIA Rail’s pan-Canadian fleet.” He highlighted the preservation of signature features such as dome cars and full-service dining, combined with modern amenities and improved accessibility.
Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, stated: “Canadians deserve a passenger rail system that is modern, reliable and built to serve them for generations to come.” He emphasized that the investment supports good-paying jobs and enhances Canada’s rail manufacturing sector.
Unifor,
Canada’s largest private-sector union, called the deal a “tremendous victory for our members in Thunder Bay and for Canadian manufacturing.” The union stressed that “’Made in Canada’ can’t just be a slogan” and called for continued awarding of publicly funded work to Canadian facilities.
Broader Context of VIA Rail and Government Investments
VIA Rail operates as a Crown corporation under the Government of Canada. In 2025, more than 216,000 passengers used its long-distance, regional, and remote services, which experienced an 8.8% ridership increase outside the Québec City–Windsor Corridor. Federal funding for VIA Rail’s fleet renewal, including 313 Alstom passenger cars, 45 Stadler locomotives valued at C$1.6 billion, and
a C$357 million Montréal assembly and maintenance facility constructed by Pomerleau, now totals over C$6.6 billion. Up to 36 locomotives will receive final assembly in Canada.
