The Canadian federal government will spend $1.9 billion to replace 45 of Via Rail's aging locomotives and establish a new assembly plant and maintenance facility in Montreal. Transport Minister Steven MacKinnon announced the investment on Wednesday, stating that locomotive assembly will return to Canada.
New Hybrid Trains for Via Rail
Switzerland-based Stadler will build the new locomotives, with the first nine manufactured in Spain. The remaining 36 will be assembled in Canada, following a knowledge transfer from Spanish workers to Canadian counterparts. These trains are anticipated to be the first hybrid models operating in North America.
Via Rail CEO Mathieu Paquette highlighted the necessity of the upgrade. "An aging fleet comes with challenges. Today's announcement gives us the tools we need to do better by our passengers," Paquette stated. He added that the hybrid locomotives will offer improved performance, reliability, and reduced emissions and fuel consumption.
These new trains will be deployed across Via Rail's network, excluding the Windsor-Quebec City corridor. This specific route's trains were replaced in 2018, and the federal government has separate plans for a high-speed rail line, known as Alto, in that region.
Addressing Reliability Concerns
Questions arose at the news conference regarding how the new locomotives will enhance Via Rail's service, particularly in light of a recent auditor general's report. The report noted Via Rail's struggles with on-time performance, which reportedly fell to 30 per cent in the first three months of 2025.
Transport Minister MacKinnon acknowledged operational challenges, especially where Via Rail shares tracks with freight trains. "It's true there are obstacles with respect to reliable operation of Via Rail in certain parts of the country," MacKinnon said. He expressed expectation for improvements in customer service and reliability.
The investment is projected to create 1,200 new full-time jobs in Canada. The batteries for the hybrid trains will be sourced domestically. The first of the new locomotives are expected to enter service by 2031.
Via Rail also indicated that a separate announcement regarding the replacement of its passenger cars is forthcoming, with the procurement process currently ongoing.
