Via Rail announced on July 29, 2026, a $1.9 billion federal government investment to replace 45 of its locomotives and construct a new assembly and maintenance facility in Montreal, Quebec. The allocation includes $1.6 billion for the locomotive replacement and $357 million for the new facility.
Stadler to Build Hybrid Locomotives with Assembly in Canada
Switzerland-based Stadler will manufacture the new hybrid trains, marking the first such locomotives in North America. The first nine units will be assembled in Spain, with the remaining 36 produced in Canada after Canadian workers gain training from their Spanish counterparts. The hybrid trains will incorporate Canadian-made batteries.
Aging Locomotive Fleet Faces Operational and Weather Challenges
Via Rail’s current fleet of 52
General Motors F40PH-2 locomotives has been in service since the late 1980s. Maintaining these aging locomotives has become increasingly difficult due to extreme weather variations across routes, such as temperatures ranging from 10 degrees Celsius in London, Ontario, to -35 degrees Celsius in Quebec City. Most rolling stock outside the Windsor-Quebec City corridor has reached the end of its service life.
Reliability Decline and Maintenance Costs Drive Replacement
Reliability of Via Rail’s fleet has declined, contributing to service delays and rising maintenance expenses. According to the 2024 Via Rail Annual Report, deteriorating equipment has increased operational costs and reduced equipment availability. On-time performance was recorded at 30%
in the first quarter of 2025, reflecting persistent challenges. A Via Rail spokesperson confirmed maintenance effort grows exponentially as the fleet ages, though current trains remain safe.
Government and Executive Statements on Investment and Service Improvements
Transport Minister Steven MacKinnon emphasized the return of locomotive assembly to Canada and expected service reliability improvements. He stated, “Locomotive assembly is returning to Canada.” MacKinnon acknowledged obstacles in certain regions, particularly where Via Rail shares tracks with freight trains, but stressed the importance of reliable service for attracting riders. Via Rail CEO Mathieu Paquette highlighted, “An aging fleet comes with challenges. Today’s announcement gives us the tools we need to do better
by our passengers.” Paquette added the hybrid locomotives will deliver enhanced performance, reliability, and reduced fuel consumption.
Customer Impact, Job Creation, and Future Passenger Car Plans
The new hybrid locomotive fleet aims to improve service stability and reduce delays for Via Rail customers. The initiative is expected to create 1,200 full-time jobs. Via Rail plans to announce its passenger car replacement strategy soon, although details remain pending. The new locomotives will replace equipment nationwide, excluding the Windsor-Quebec City corridor, where the federal government is developing the Alto high-speed rail line.
