Canada is investing C$4.7 billion to renew VIA Rail’s long-distance, regional, and remote service fleet with 313 domestically built passenger railcars. Prime Minister Mark Carney announced the order on September 3, 2026, at Alstom’s Thunder Bay plant, replacing equipment more than 70 years old, including cars 77 years in service.
The 313 passenger cars will feature nine configurations: coach, sleeper, accessible, berth, prestige, panorama, dome, dining, and baggage cars, with sleepers as the largest category. Design and engineering are based in Saint-Bruno-de-Montarville, Québec; carbodies are manufactured in La Pocatière, Québec; all cars will be finally assembled in Thunder Bay, Ontario.
The deal includes nearly C$700 million for a 15-year Technical Support and Spare Parts Agreement and is expected to maintain or create about 670 direct Canadian jobs contributing over C$1.6 billion to the GDP.
The new railcars will operate on eight routes outside the Québec City–Windsor Corridor, connecting nearly 400 communities across provinces such as Nova Scotia, Québec, Ontario, Manitoba, and British Columbia, including cities and towns like Halifax, Gaspé, Jonquière, Senneterre, Toronto, Vancouver, Churchill, Prince Rupert, Jasper, Sudbury, and White River. These routes also serve numerous First Nations communities.
Interim VIA Rail President and CEO Mathieu Paquette highlighted that
the new cars retain signature features such as dome cars and full-service dining while incorporating modern accessibility and digital connectivity. Minister of Transport Steven MacKinnon underscored that Canadian assembly supports good-paying jobs and bolsters the domestic rail manufacturing sector. Unifor, representing workers at Alstom’s Thunder Bay plant and VIA Rail employees, hailed the investment as a major victory for Canadian manufacturing and public rail.
The order complements ongoing federal commitments of C$1.6 billion for 45 Stadler passenger locomotives, with up to 36 assembled in Canada, and C$357 million for a Montréal assembly and maintenance facility built by Pomerleau. Combined, these
investments total more than C$6.6 billion directed to renewing VIA Rail’s long-distance, regional, and remote fleets. In 2025, these services carried over 216,000 passengers, experiencing an 8.8% non-Corridor ridership increase.
This initiative complies with the federal Buy Canadian Policy to promote domestic manufacturing and reduce reliance on imports. Alstom plans to expand its Canadian supplier network and increase Canadian steel usage for structural assemblies and fabricated parts. This marks the return of VIA Rail passenger car production in Canada after a 40-year hiatus. The new railcars are engineered for Canada’s climatic extremes and include cybersecurity protections for operational technology.
