Carney Announces $4.7B Investment to Build New VIA Rail Passenger Cars in Canada

Prime Minister Mark Carney announced Thursday what the federal government described as the largest investment in VIA Rail’s history, with more than $4.7 billion being committed to acquire and maintain 313 new passenger rail cars.

The investment will see VIA Rail passenger cars manufactured and assembled in Canada for the first time in four decades.

The new cars will be built at Alstom Canada facilities in Thunder Bay, Ontario, and La Pocatière, Quebec, with design and engineering work taking place in Saint-Bruno-de-Montarville, Quebec.

The project is expected to support nearly 700 jobs in Ontario and Quebec and generate more than $1.6 billion in economic benefits.

As part of the federal government’s Buy Canadian Policy, Alstom will draw on and expand its network of more than 900 Canadian suppliers while maximizing the use of Canadian steel in structural assemblies, supports and fabricated metal components.

The investment comes as VIA Rail’s long-distance, regional and remote fleet approaches the end of its useful life. Some of the equipment currently in service is more than 70 years old.

The federal government said replacing the aging fleet will provide safer, more reliable and modern passenger rail service while supporting Canadian workers and businesses.

The announcement follows a $1.95-billion federal investment announced in July for 45 new passenger rail locomotives and a new assembly and maintenance facility in Montreal.

Combined, the two investments bring the federal government’s total commitment to renewing VIA Rail’s long-distance, regional and remote fleet to more than $6.6 billion.

The federal government said the investments are intended to strengthen Canada’s domestic manufacturing capacity and supply chains while improving passenger rail connections across the country.

The new rail cars are expected to help replace aging equipment and support VIA Rail service for decades to come.