Steven MacKinnon announces $1.95 billion investment to renew VIA Rail's locomotive fleet and bring assembly back to Canada
Mathieu PaquetteSteven MacKinnonVia RailStadlerVIA Rail Canada

Steven MacKinnon announces $1.95 billion investment to renew VIA Rail's locomotive fleet and bring assembly back to Canada

Transport Minister Steven MacKinnon announced a $1.95 billion investment to renew VIA Rail's locomotive fleet, replacing 45 aging trains and establishing a new assembly plant in Montreal. The initiative aims to create 1,200 jobs and introduce North America's first hybrid trains by 2031.

ctvnews.ca+2 sources29 July 2026 · 15:55 UTC
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Transport Minister Steven MacKinnon announced a significant $1.95 billion investment aimed at renewing VIA Rail's locomotive fleet, which includes replacing 45 aging trains and constructing a new assembly plant in Montreal. This initiative marks a pivotal shift in Canadian rail manufacturing, as it brings locomotive assembly back to Canada for the first time in decades.12

The investment comprises $1.6 billion for the production of new locomotives by Stadler, a Swiss rail manufacturer, and $357 million for the assembly and maintenance facility. The new locomotives will be powered by hybrid battery-diesel technology, making them the first hybrid trains in North America, with batteries sourced from ABB in Saint-Laurent.345

An aging fleet comes with challenges. Today’s announcement gives us the tools we need to do better by our passengers,” said VIA Rail CEO Mathieu Paquette. The project is expected to create 1,200 full-time jobs across various sectors, including manufacturing and engineering, and the first trains are anticipated to enter service by 2031.7

This investment is part of the Government of Canada's broader commitment to modernize passenger rail, ensuring that VIA Rail can continue to fulfill its national mandate and maintain essential connections for communities across the country.6

Key Insight
“The investment includes $1.6 billion for 45 new hybrid locomotives and $357 million for a new assembly plant in Montréal, creating 1,200 full-time jobs. The first hybrid trains, powered by Canadian-made batteries, are expected to enter service by 2031, marking a significant modernization of VIA Rail's fleet.”
CuriousCats studied:
1
ctvnews.ca
“Feds to spend $1.9B to replace 45 trains, build plant”
ctvnews.ca →
2
The Globe and MailThe Globe and Mail
“The federal government says it plans to spend $1.6-billion to replace 45 of Via Rail’s aging locomotives and another $357-million to build a new assembly plant and maintenance facility.”
The Globe and Mail →
3
canada.cacanada.ca
“Today, the Honourable Steven MacKinnon, Minister of Transport and Leader for the Government in the House of Commons, joined by Mathieu Paquette, Interim President and Chief Executive Officer of VIA Rail Canada announced a $1.95 billion Government of Canada investment to renew VIA Rail’s long-distance, regional and remote locomotive fleet while bringing passenger locomotive assembly back to Canada for the first time in decades.”
canada.ca →
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