The government of Canada will be investing C$1.95 billion (US$1.4 billion) to renew VIA Rail Canada’s long-distance, regional and remote locomotive fleet.

The investment includes:

• C$1.6 billion (US$1.1 billion) for the production of 45 new locomotives by Stadler, which will complete the final assembly of up to 36 locomotives in Canada, marking the first time in decades that passenger locomotives for VIA Rail Canada will be assembled in the country. 

• $357 million (US$254 million) for VIA Rail Canada to build a new assembly and maintenance facility in Montréal, Quebec, where the Canadian assembly of the locomotives will take place. Built by Pomerleau, the facility will also support the maintenance and operation of the new fleet at VIA Rail Canada’s Montréal Maintenance Center over the long term.

The government of Canada says the new locomotives, powered by hybrid battery-diesel technology with batteries supplied by ABB from its Saint Laurent facility, will replace VIA Rail Canada's aging fleet serving Canadian routes and will become one of North America's first hybrid-powered passenger locomotives. The battery systems will be used to optimize and reduce fuel consumption, providing an immediate efficiency gain while laying the groundwork for future zero-emission propulsion.

Stadler notes the contract for the new locomotives includes a 20-year technical support and spare supply agreement. The new fleet will support VIA Rail Canada’s long-distance, regional and remote rail program. The locomotives will be designed to operate reliably in temperatures as low as -50°C (-58°F).  

“We thank the government of Canada for its strong commitment to passenger rail," said VIA Rail Canada Interim President and CEO Mathieu Paquette. "This major investment will help secure the future of long distance, regional and remote passenger rail, allowing VIA Rail to continue fulfilling its national mandate and preserving essential connections for communities across the country. By building new rail capacity and specialized expertise in Canada, it will also strengthen our ability to serve Canadians for generations to come.”

In April, VIA Rail Canada announced its intentions to invest C$150 million (US$107.6 million) in a major modernization program for its entire fleet of 56 Château and Manor sleeper cars over the next five years as part of the ongoing commitment to improve the passenger experience and strengthening Canada’s passenger rail system.

CAD Railway Industries was selected to carry out upgrades to key systems and interiors for that project that will help improve comfort, reliability and onboard amenities for passengers traveling on the Ocean and the Canadian, VIA Rail Canada’s long-distance routes.  

The agency also received 32 new trains in the Québec City-Windsor corridor in 2024 as part of its plan to replace its aging fleet. As part of its ridership growth, VIA Rail Canada's 2025 annual report revealed the agency welcoming 4.4 million passengers in that year, increasing its total revenue to C$514.8 million (US$377.7 million).