The Government of Canada has announced a 1.95 billion CAD investment to renew VIA Rail Canada’s long-distance, regional and remote locomotive fleet, including plans to return passenger locomotive assembly to Canada for the first time in more than 25 years.
The funding package includes 1.6 billion CAD for the production of 45 hybrid battery-diesel locomotives by Stadler, alongside 357 million CAD for the construction of a new assembly and maintenance facility in Montréal, Quebec.
Under the agreement, Stadler will manufacture the new fleet using its global supply chain and Canadian suppliers, with final assembly of up to 36 locomotives taking place in Canada. The Montréal facility, which will be built by Pomerleau, will also support the long-term maintenance and operation of the fleet at VIA Rail’s Montréal Maintenance Centre.
The project is expected to support the equivalent of approximately 1,200 full-time jobs across manufacturing, construction, engineering and maintenance.
The new locomotives will use hybrid battery-diesel technology, with battery systems supplied by ABB from its facility in Saint-Laurent, Quebec. The fleet will become the first hybrid-powered passenger locomotives in North America, using batteries to reduce fuel consumption while providing a platform for future zero-emission propulsion technologies.
The locomotives will replace VIA Rail’s existing fleet operating on routes outside the Québec City–Windsor Corridor, with the investment forming part of funding first announced in Canada’s 2024 federal budget.
Today, for the first time in more than 25 years, we're bringing passenger rail locomotive assembly back to Montréal. This investment means skilled manufacturing jobs, stronger Canadian supply chains, and a modern fleet that will keep Canadians connected for decades to come. By combining Canadian expertise with world-class European innovation, we're strengthening our economy while building a more resilient passenger rail network for the future.
The procurement also marks one of the largest contracts awarded by a Canadian Crown corporation to a company headquartered in a member state of the European Free Trade Association (EFTA), according to the Government of Canada.
