Made in Canada: Feds Announce Largest Investment in VIA Rail History

Prime Minister Mark Carney has announced that VIA Rail passenger cars will be built in Canada for the first time in four decades. The federal government is investing more than $4.7 billion – the largest investment in VIA Rail’s history – for the rail operator to acquire and maintain 313 new passenger rail cars from Alstom Canada. 

The cars will be manufactured and assembled in Thunder Bay, Ontario, and La Pocatière, Québec, with design and engineering work taking place in Saint-Bruno-de-Montarville, Québec.

“In the face of strong headwinds, a confident Canada is choosing to build,” said Rt. Hon. Mark Carney, Prime Minister of Canada. “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.”

The investment will support nearly 700 jobs in Ontario and Québec, and generate more than $1.6 billion in economic benefits. In line with the government’s Buy Canadian Policy, Alstom will leverage and expand its extensive network of more than 900 Canadian suppliers in delivering the new fleet, while maximizing the use of Canadian steel in structural assemblies, supports, and fabricated metal elements.

The news comes at a critical time for Canada’s passenger rail network. VIA Rail’s long-distance, regional, and remote fleet is approaching the end of its useful life, with some equipment more than 70 years old. The government says that replacing the aging fleet will deliver safer, more reliable, and more modern service for Canadians.

Combined with the federal government’s recent $1.95 billion investment in 45 new passenger rail locomotives and a new assembly and maintenance facility in Montréal, brings the federal government’s investment in renewing VIA Rail’s long-distance, regional, and remote fleet to more than $6.6 billion. 

The 313-car fleet will include different types of passenger cars, including dining cars, panorama cars, and sleepers.

They will serve VIA Rail’s eight long-distance, regional, and remote routes outside the Québec City-Windsor Corridor, providing essential transportation across eight provinces – particularly for communities where affordable alternatives are limited or unavailable. These routes connect Indigenous, rural, and remote communities that rely on VIA Rail.

“Today’s announcement marks a defining step in shaping the future of VIA Rail’s pan-Canadian fleet,” said Mathieu Paquette, Interim President and CEO of VIA Rail Canada.“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.”