Canada VIA Rail hybrid locomotive program

In late July 2026 the Canadian federal government announced a C$1.9‑billion investment to replace 45 aging VIA Rail locomotives with hybrid battery‑diesel units, the first such passenger engines in North America. Swiss manufacturer Stadler will supply the locomotives, building the first nine in Spain and assembling the remaining 36 in Canada after a training period. A new assembly and maintenance plant will be constructed in Montreal, and the project is expected to create about 1,200 full‑time jobs, cut fuel use and emissions, and improve on‑time performance, with the first units slated for service by 2031.

A few days later, the government reaffirmed the C$1.95 billion commitment and added details: ABB will provide the battery systems from its Saint‑Laurent plant, and construction firm Pomerleau will build the Montreal facility. The announcement reiterated the job‑creation figures and the aim of revitalising Canada’s rail supply chain while reducing environmental impact.

Together, the two releases outline a coordinated effort to modernise VIA Rail’s fleet, establish domestic assembly capacity, and advance Canada’s broader passenger‑rail modernization agenda.