The Canadian government has unveiled funding of nearly $2 billion to upgrade Via Rail’s passenger fleet by introducing 45 new hybrid battery-diesel locomotives. Transport Minister Steven MacKinnon disclosed the plan in Montreal, emphasizing that 36 of the 45 new locomotives, produced by Swiss manufacturer Stadler, will be manufactured in Canada.
This decision marks the return of passenger rail locomotive assembly to Montreal after a hiatus of more than 25 years. MacKinnon stated that by blending Canadian expertise with top-tier European innovation, the country is fortifying its economy and fortifying a more resilient passenger rail network for the future.
The initiative to revamp Via Rail’s aging locomotive fleet was initially announced in Budget 2024. The government outlined that out of the total $1.95 billion allocation, $1.6 billion will finance the construction of the new locomotives. An additional $357 million will enable VIA Rail to construct a new assembly and maintenance facility in Montreal, with Canadian construction company Pomerleau overseeing the project.
The Liberal government projects that this substantial investment will create around 1,200 full-time jobs across various sectors, including skilled manufacturing, construction, engineering, and long-term maintenance roles.
According to MacKinnon’s department, the new trains will be the first hybrid-powered passenger locomotives in North America. Transport Canada also suggests that these advanced, lower-emission trains will set the stage for future zero-emission propulsion, although no specific timeline has been provided. The batteries for the trains will be provided by ABB, a multinational corporation with facilities in Canada, including a Montreal-based facility in the Saint-Laurent borough.
While many support the initiative to upgrade Via Rail’s trains, Conservative MP Dan Albas expressed dissatisfaction with the decision to have the locomotives built in Spain and only assembled in Canada. Albas emphasized the importance of adhering to a “buy Canada” policy and voiced concerns about the current strategy not aligning with this principle.
Initially, nine locomotives will be both built and assembled in Spain, with the remaining 36 to be assembled in Canada. In a previous deal in 2018, Via Rail had contracted Germany’s Siemens, which has its North American manufacturing headquarters in California, for a similar project involving new passenger locomotives.
Albas urged the federal government to maintain a consistent “buy Canada” approach in such ventures, stating that the current arrangement falls short of meeting this expectation.