VIA Rail Canada has ordered 313 new passenger rail cars under a 4.7 billion CAD agreement with Alstom. Notably, the vehicles will be designed, manufactured and assembled in Canada.

The contract, announced by Prime Minister Mark Carney in Thunder Bay, Ontario, will see passenger cars for VIA Rail built domestically for the first time in four decades.

Alstom wins landmark contract to renew VIA Rail Canada’s long-distance fleet
Alstom wins landmark contract to renew VIA Rail Canada’s long-distance fleet

The federal government is providing more than 4.7 billion CAD to VIA Rail to acquire and maintain the new fleet. Alstom will carry out design and engineering activities at its facility in Saint-Bruno-de-Montarville, Québec. It will then manufacture car bodies at La Pocatière, Québec, and undertake final assembly in Thunder Bay, Ontario.

The agreement covers 313 Adessia rail cars, with around 4 billion CAD allocated to the vehicles themselves and almost 700 million CAD for a 15-year Technical Support and Spare Parts Supply Agreement.

The new fleet will replace VIA Rail’s existing long-distance passenger cars, some of which are more than 70 years old. The vehicles will operate on eight long-distance, regional and remote routes outside the Québec City–Windsor Corridor, connecting nearly 400 communities across Canada.

Routes served by the fleet will include services linking Montréal, Halifax, Gaspé, Jonquière, Senneterre, Toronto, Vancouver, Churchill, Prince Rupert, Jasper, Sudbury and White River.

Michael Keroullé, President of Alstom Americas said:

This is an emblematic project for Alstom, and we’re honoured to be entrusted by VIA Rail and the federal government with delivering it. This project marks the beginning of a new chapter between Canada’s national passenger railway company and the country’s local rail manufacturer. Together, we are building a fleet for Canadians, by Canadians, and it will move the country forward for generations to come.

The fleet will comprise nine different car configurations, including coach, sleeper, accessible, berth, prestige, panorama, dome, dining and baggage cars. The new vehicles will retain features such as dome cars, full-service dining and social areas, while adding modern accessibility features, onboard connectivity and updated passenger facilities.

The cars are being designed for Canada’s climate conditions and will incorporate cybersecurity systems for operational technology.

The investment is part of a wider programme to replace VIA Rail’s long-distance, regional and remote fleet. The federal government recently committed 1.6 billion CAD for 45 new passenger locomotives from Stadler, alongside 357 million CAD for a new assembly and maintenance facility in Montréal.

Up to 36 of the Stadler locomotives will undergo final assembly in Canada. The new Montréal facility, being built by Pomerleau, will support locomotive assembly as well as long-term maintenance and fleet operations.

Combined, the two investments in locomotives and passenger cars bring federal funding for the renewal of VIA Rail’s long-distance, regional and remote fleet to more than 6.6 billion CAD.

The passenger car contract is also expected to support Canada’s rail manufacturing supply chain. The project will create or sustain up to 670 direct jobs at its Canadian operations, with additional employment expected among suppliers and other businesses.

Alstom currently employs around 5,200 people in Canada and works with more than 900 local suppliers. The VIA Rail programme is expected to generate more than 1.6 billion CAD in economic benefits for Canada.

The procurement is part of the federal government’s Buy Canadian Policy, with Alstom expected to increase its use of Canadian suppliers and Canadian steel in structural assemblies, supports and fabricated metal components.

The Rt. Hon. Mark Carney, Prime Minister of Canada said:

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.

The investment will support domestic manufacturing and employment while reducing reliance on overseas production.

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