The Canadian government has unveiled an ambitious initiative to revitalise Via Rail’s ageing locomotive fleet with a substantial investment of $1.6 billion. This significant funding will replace 45 outdated engines across the country, excluding the Windsor-Quebec City corridor, where plans are in motion for a high-speed rail line. Additionally, a new assembly plant and maintenance facility will be established at a cost of $357 million, heralding the return of locomotive assembly to Canadian soil.
New Assembly Plant to Boost Local Economy
Transport Minister Steven MacKinnon announced the project during a press conference in Montreal, outlining the government’s commitment to enhancing rail travel across Canada. “Locomotive assembly is returning to Canada,” he stated, emphasising the economic benefits of this initiative. The locomotives will be manufactured by Swiss company Stadler, with the first nine units being produced in Spain. The remaining 36 will be assembled in Canada, where local workers will receive training from their Spanish counterparts to ensure quality and efficiency.
This new fleet is set to introduce North America’s first hybrid trains, combining performance with environmental sustainability. Via Rail’s CEO, Mathieu Paquette, expressed optimism about the upgrades, stating, “The new hybrid locomotive offers us better performance, reliability, and will allow us to reduce our emissions and fuel use.” Such advancements are crucial for modernising Canada’s railways and enhancing passenger experiences.
Addressing Service Reliability Concerns
Despite the promise of new trains, concerns regarding service reliability persist. A recent report by Canada’s auditor general highlighted ongoing issues with Via Rail’s punctuality, revealing a concerning on-time performance rate of just 30% during the first quarter of 2025. MacKinnon acknowledged these challenges, particularly in regions where Via Rail shares tracks with freight services.
He reassured that the investment aims to enhance customer service and reliability. “We expect improvements in customer service, in terms of reliability. People should count on a reliable train service,” MacKinnon affirmed. Following the introduction of the new locomotives, he anticipates that Via Rail will significantly boost its service standards and attract more riders.
Job Creation and Future Announcements
The initiative is not only a response to service challenges but also a catalyst for job creation, with the government projecting the creation of 1,200 full-time positions linked to the manufacturing and assembly of the new trains. Furthermore, the hybrid locomotives will incorporate Canadian-made batteries, further supporting local industry.
Paquette hinted at additional developments in Via Rail’s fleet, mentioning that an announcement regarding the replacement of passenger cars is forthcoming. “The process is still ongoing, so I can’t comment. But I can say that we’ll make an announcement,” he noted, indicating that the modernisation efforts are far from over.
Why it Matters
This monumental investment in Via Rail reflects Canada’s commitment to modernising its transportation infrastructure while addressing climate change through sustainable practices. The introduction of hybrid trains not only promises to enhance the passenger experience with improved reliability but also serves as a strategic move to attract more riders to rail travel. As the country looks to the future, this initiative could play a pivotal role in reshaping rail service across Canada, making it a more viable and environmentally friendly alternative to road and air travel.