Canada to spend $1.9B on new Via Rail hybrid locomotives and plant

The Canadian federal government announced a $1.9 billion investment to replace 45 aging Via Rail locomotives and to build a new assembly and maintenance facility in Montreal. Swiss‑based Stadler will supply the hybrid locomotives, with the first nine built in Spain and the remaining 36 assembled in Canada after workers are trained by their Spanish counterparts. The trains will be the first hybrid models in North America, using Canadian‑made batteries, and are expected to improve reliability, reduce emissions and fuel use, and create about 1,200 full‑time jobs. Transport Minister Steven MacKinnon said the project returns locomotive assembly to Canada and will help raise Via Rail’s on‑time performance, which had fallen to roughly 30 % in early 2025. Via Rail CEO Mathieu Paquette highlighted the expected performance gains and environmental benefits, with the first units slated to enter service by 2031.

The funding also supports broader efforts to boost passenger rail service and ridership across the country, complementing other federal rail initiatives such as the planned high‑speed line in the Windsor‑Quebec corridor.