Canada: Ottawa Commits $1.95bn to New VIA Rail Locomotive Fleet, Revives Montreal Assembly

The Government of Canada announced on 29 July 2026 a $1.95 billion investment to renew VIA Rail's long-distance, regional and remote locomotive fleet, with final assembly returning to Canada for the first time in decades.

Of the total, $1.6 billion will fund production of 45 new locomotives from Swiss manufacturer Stadler, with up to 36 of them assembled in Canada. A separate $357 million will fund a new locomotive assembly and maintenance facility in Montreal, to be built by Pomerleau.

The new locomotives will run on hybrid battery-diesel technology, with batteries supplied by ABB from its Saint-Laurent facility -- making them North America's first hybrid-powered passenger locomotives. The investment is expected to support the equivalent of 1,200 full-time jobs across manufacturing, construction, engineering and long-term maintenance.

"This investment means skilled manufacturing jobs, stronger Canadian supply chains, and a modern fleet that will keep Canadians connected for decades to come," said Steven MacKinnon, Minister of Transport. VIA Rail interim President and CEO Mathieu Paquette said the investment "will help secure the future of long-distance, regional and remote passenger rail." Inigo Parra, Stadler's Executive Vice-President for its Spain division, said the company is "providing VIA Rail with a future-oriented solution that supports its environmental objectives."