Made in Canada: Ottawa bets $4.7B on new VIA Rail fleet

The federal government is committing more than $4.7 billion to a major renewal of VIA Rail’s passenger fleet, with 313 new rail cars set to be built in Canada by Alstom Canada.

The investment, announced as part of Ottawa’s Buy Canadian Policy, will mark the first time in four decades that VIA Rail passenger cars have been manufactured entirely in Canada.

Much of the Crown corporation’s current fleet was built in the United States.

The new cars will be manufactured and assembled at Alstom facilities in Thunder Bay, ON, and La Pocatière, QC, while design and engineering work will be carried out in Saint-Bruno-de-Montarville, QC.

“This investment comes at a critical time for Canada’s passenger rail network. In a country as vast as ours, reliable passenger rail is essential to keeping communities connected,” wrote Prime Minister Mark Carney in a statement.

“Yet 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.”

“Replacing that aging fleet will deliver safer, more reliable, and more modern service for Canadians – while creating good jobs and building more of what Canada needs at home.”

Ottawa estimates the project will contribute more than $1.6 billion to the Canadian economy while supporting nearly 700 jobs across Ontario and Quebec.

The order adds another major transportation project to Alstom’s Thunder Bay workload.

The facility is also slated to handle final assembly of new subway cars for the Toronto Transit Commission, with each vehicle expected to contain 55 per cent Canadian content.

A timeline for construction of the new VIA Rail cars has not yet been announced.

The investment is also expected to modernize the passenger experience, with the new fleet set to include a variety of sleeper cars as well as panorama dome cars.

Mathieu Paquette, interim CEO of VIA Rail Canada, described the investment as significant for communities that depend on passenger rail.

“For many Canadians, having Via Rail remains an essential service," he told CBC News. "It's more than just transportation, it's a lifeline.”

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