The Government of Canada announced a $1.9 billion investment on July 29, 2026, to replace Via Rail’s locomotive fleet and construct a new assembly and maintenance facility in Montreal. The funding allocates $1.6 billion to replace 45 aging locomotives and $357 million for the new facility’s construction, according to Transport Minister Steven MacKinnon.
Replacement Locomotives and Assembly Details
Switzerland-based Stadler will build the new locomotives, with the first nine units assembled in Spain. The remaining 36 will be assembled in Canada by local workers trained by the Spanish team. The new trains are set to be North America’s first hybrid locomotives and will incorporate Canadian-made
batteries.
Existing Fleet Challenges
Via Rail currently operates 52 General Motors F40PH-2 locomotives introduced in the late 1980s. These have faced reliability issues and increased maintenance costs due to age and extreme weather along routes. Temperatures vary widely on Via Rail’s network, from 10°C in London, Ontario, to -35°C in Quebec City during winter. Karl Helou, a Via Rail spokesperson, said the maintenance effort for the existing fleet “grows exponentially” as locomotives age but confirmed they remain safe.
Operational Range, Job Creation, and Route Coverage
The Stadler trains are designed to operate in temperatures as low as -50°C, a capability Miguel Cerdá, Stadler’s industrial vice president, highlighted during the announcement.
The replacement covers all Via Rail services nationwide except the Windsor-Quebec City corridor, which uses Siemens Charger locomotives as part of the federal government’s planned Alto high-speed rail line. MacKinnon confirmed the project is expected to create 1,200 new full-time jobs associated with the assembly facility.
Official Statements and Service Improvements
Transport Minister MacKinnon stated, “Locomotive assembly is returning to Canada.” He added the investment aims to enhance Via Rail’s reliability and customer service. Via Rail CEO Mathieu Paquette called the aging fleet challenging but expressed optimism that the hybrid locomotives will improve performance, reliability, and reduce emissions and fuel consumption. Paquette noted the wide
temperature swings on routes as a factor complicating maintenance. He said, “An aging fleet comes with challenges. Today’s announcement gives us the tools we need to do better by our passengers.” Via Rail plans to announce soon on replacing its passenger cars.
The federal government’s Alto high-speed rail line will serve the Windsor-Quebec City corridor, where Siemens Charger locomotives replaced older trains starting in 2022. The improvement project aligns with efforts to raise Via Rail’s poor on-time performance, which fell to 30% in the first quarter of 2025 according to Canada’s auditor general.
