The Canadian federal government will invest $1.9 billion to replace 45 of Via Rail’s aging locomotives and construct a new assembly and maintenance facility in Montreal, a project expected to generate 1,200 new full-time jobs. The announcement was made on July 29, 2026, by Transport Minister Steven MacKinnon, who highlighted the return of locomotive assembly to Canada as part of the initiative.
Switzerland-based Stadler has secured the contract to build the new hybrid locomotives, marking the introduction of the first hybrid trains in North America. The initial nine locomotives will be produced in Spain, while the remaining 36 are scheduled
for assembly in Canada. Stadler will also provide assembly training to Canadian workers, ensuring technology transfer and domestic manufacturing involvement.
Via Rail’s current locomotive fleet consists of 52 General Motors F40PH-2 units that have been in service since the late 1980s. These aging trains face increasing maintenance challenges, exacerbated by extreme weather variations along routes, such as temperature changes from 10°C in London, Ontario, to -35°C in Quebec City. The existing rolling stock outside the Windsor-Quebec City corridor, where Siemens Charger locomotives were introduced in 2022, has effectively reached the end of its operational life, complicating reliability and increasing costs.
Transport Minister MacKinnon stated, “Locomotive assembly is returning to Canada,” underscoring the project’s contribution to domestic job creation and industrial capability. Via Rail CEO Mathieu Paquette emphasized the difficulties posed by the aging fleet, stating, “An aging fleet comes with challenges. Today’s announcement gives us the tools we need to do better by our passengers.” Paquette added that the new hybrid locomotives will deliver improved performance, reliability, and reduced emissions and fuel consumption. Via Rail spokesperson Karl Helou noted that maintaining the older locomotives “grows exponentially” harder with age, though they remain safe and operational.
Service reliability has been a
longstanding issue for Via Rail, with Canada’s auditor general reporting a 30% on-time performance rate in the first quarter of 2025. Factors include deteriorating equipment and shared tracks with cargo trains, resulting in delays and increased operating costs. The government expects the fleet replacement and new maintenance facility to address these challenges and enhance customer service.
The fleet replacement excludes the Windsor-Quebec City corridor, where new Siemens Charger locomotives have already been deployed under a separate federal program. The corridor is also the planned route for the upcoming Alto high-speed rail project.
Via Rail CEO Mathieu Paquette announced that plans
to replace passenger cars are underway, with an official announcement expected soon. This follows completion of work on the locomotive replacement and facility development.
