Prime Minister Mark Carney has announced the largest investment in VIA Rail’s history as part of his government’s plan to bring rail car manufacturing back to Canada via the Crown Corporation.
For the first time in four decades, VIA Rail passenger cars will be built in Canada thanks to a more than $4.7 billion commitment to enable the acquisition and maintenance of 313 new passenger rail cars from Alstom Canada.
Prime Minister Carney stated, “In the face of strong headwinds, a confident Canada is choosing to build. For the first time in four decades, VIA’s passenger cars will be built in Canada. Cars once made in the United States, now made here at home. This means new contracts for Canadian suppliers, good jobs for Canadian workers, and paycheques that stay in Canadian cities and towns. That’s how we build Canada strong.”
An act of support for its Buy Canada Policy and commitment to investing in domestic capabilities and infrastructure, diversifying trade relationships, and reducing dependence on a single trading partner, the investment will bolster the domestic manufacturing base. The investment will not only support VIA Rail, but also the Canadian steel, aluminum, and lumber industries, bringing more jobs for Canadian workers. The investment will support 700 jobs in Ontario and Quebec and will produce more than $1.6 billion in economic benefits.
The passenger cars will be manufactured and assembled in Thunder Bay, Ontario and La Pocatière, Québec, while the design and engineering work will be undertaken in Saint-Bruno-de-Montarville, Québec. Alstom will grow its network of more than 900 Canadian suppliers to deliver the new fleet, and Canadians will benefit from a stronger economy and a stronger passenger rail network. Eight of VIA Rail’s long-distance, regional, and remote routes outside of the Québec City-Windsor Corridor will be served by the investment, which was utilized by 216,000 people in 2025.
With some of VIA Rail’s fleet reaching the end of its expected lifecycle, this investment is timely. The investment is not just in passenger rail cars and Canadian manufacturing; it is part of delivering a safer, more reliable, and modernized rail service that bolsters the economic strength of the nation.
The government has also committed $1.95 billion in 45 new passenger rail locomotives and a new assembly and maintenance facility in Montréal. The purchase from Swiss-based Stadler will see the final assembly of up to 36 locomotives in Canada, the first time in decades that VIA’s passenger locomotives will be assembled domestically.
“Today’s announcement marks a defining step in shaping the future of VIA Rail’s pan-Canadian fleet. These new Canadian-built passenger rail cars will retain signature features such as dome cars, full-service dining, and social areas, while incorporating modern amenities, improved accessibility, and greater reliability. They will help us preserve essential services to remote communities and elevate the unique onboard experience that allows passengers to discover Canada in a way that only train travel can offer. We thank the Government of Canada for this historic investment in the future of passenger rail,” Mathieu Paquette, Interim President and Chief Executive Officer of VIA Rail Canada, said.
