**Ottawa Announces $4.7 B Contract for New Via Rail Passenger Cars**
OTTAWA — The federal government has signed a $4.7 billion agreement to build 313 new passenger cars for Via Rail, the country’s intercity passenger‑rail service. The contract was announced on Thursday by Prime Minister Mark Carney at Alstom’s manufacturing facility in Thunder Bay, Ontario, where the cars will be assembled.
“The rail cars on our long‑distance and remote routes are more than 70 years old. They were built when the NHL had six teams. Goalies wouldn’t wear masks. The Leafs would win the Stanley Cup,” Carney said. “Those old cars have served our country well, but they’re long overdue for retirement. It’s time to build new ones, to build them here at home.”
Carney highlighted that the new fleet will be produced, assembled and maintained in Canada for the first time in four decades. “Cars that used to be built in the United States will be built right here in Thunder Bay at Alstom, by the best workers in the world,” he added.
Transport Minister Steven MacKinnon described the investment as the single largest in Via Rail’s history and said the project is expected to create about 700 jobs. “This is a truly Canadian project. Canadian supply chains, workers, and it’s a renewed investment in that passenger rail service that connects us all,” MacKinnon told The Canadian Press. He indicated that the first new car is slated for delivery in 2031.
Via Rail’s current long‑distance and remote‑route passenger cars have an average age of 77 years, according to a spokesperson for the Prime Minister’s Office. The most recent import of passenger cars occurred in August 2025 under a 2018 contract with Siemens Canada, which supplied equipment for the Windsor‑Quebec City corridor. Those cars and locomotives were manufactured at Siemens’ plant in Sacramento, California.
In July, the government announced additional spending to modernize the service: $1.6 billion to replace 45 aging locomotives and $357 million to construct a new assembly plant and maintenance facility. The new locomotives are also expected to be delivered in 2031. The federal government has said the upgraded equipment will improve Via Rail’s reliability and on‑time performance, which the auditor general reported fell to 30 percent in the first three months of 2025.
The announcement was reported by The Canadian Press on September 3, 2026, with contributions from Nick Murray in Ottawa. Catherine Morrison contributed to the report.
Article and image source: lakelandtoday.ca
