Canada’s federal government will invest $1.9 billion to replace 45 of Via Rail’s aging locomotives and to construct a new assembly and maintenance facility in Montreal.
The announced funding allocates $1.6 billion specifically for the locomotive fleet replacement and $357 million to build the new facility. Transport Minister Steven MacKinnon revealed the program on July 29, 2026, emphasizing that locomotive assembly work will return to Canada under this plan.
Manufacturing and Hybrid Technology
The Swiss company Stadler will manufacture the new locomotives, with the first nine units built in Spain. The remaining 36 locomotives will be assembled in Canada by Canadian workers trained by
Spanish counterparts. These locomotives are expected to be the first hybrid trains operating in North America and will include Canadian-made batteries.
Current Fleet Challenges
Via Rail currently operates 52 General Motors F40PH-2 locomotives acquired in the late 1980s. Although still operational, the current fleet demands exponentially increasing maintenance efforts as the equipment ages, according to Via Rail spokesperson Karl Helou. Extreme weather also complicates operations, with trains departing London, Ontario, at 10°C and arriving in Quebec City at -35°C. Stadler’s industrial vice president Miguel Cerdá noted their locomotives can operate in temperatures as low as -50°C.
Expected Benefits and Job Creation
Via Rail CEO Mathieu Paquette highlighted that
the new hybrid locomotives will improve performance and reliability while reducing emissions and fuel consumption. Transport Minister MacKinnon stated the investment will create 1,200 new full-time jobs tied to the assembly and maintenance facility. MacKinnon also noted the goal of better customer service and improved reliability despite existing challenges where passenger and freight trains share tracks.
Exclusions and Related Upgrades
The locomotives to be replaced exclude those on the Windsor-Quebec City corridor. This route is set for the Alto high-speed rail line and is already served by Siemens Charger locomotives introduced beginning in 2022. Canada’s auditor general reported that Via Rail’s on-time performance fell
to 30% during the first quarter of 2025, indicating longstanding operational challenges.
Transport Minister MacKinnon acknowledged obstacles in reliability on shared routes but expects the new equipment to improve service. Paquette said Via Rail will soon announce a replacement plan for passenger cars, but details remain under development.
Travel Impact
Passengers can anticipate more reliable service and enhanced customer experiences with the new locomotive fleet and Montreal facility. The hybrid technology aims to lower environmental impacts through reduced emissions and fuel use.
The investment reflects a strategy to modernize Via Rail’s infrastructure to meet operational demands caused by aging equipment and Canada’s
extreme weather variations.
