The federal government announced a $4.7 billion spending package on September 3, 2026 to purchase and maintain 313 new passenger rail cars for VIA Rail. The contract, awarded to Alstom Canada, calls for the vehicles to be built in facilities located in Quebec and Ontario.
The investment will fund the design, construction, and long‑term upkeep of the fleet, marking a significant expansion of Canada’s passenger rail capacity. By sourcing the entire order from domestic manufacturers, the project aligns with the government’s Buy Canadian Policy, which seeks to strengthen local industry and preserve jobs within the country.
For the first time in four decades, VIA Rail’s passenger cars will be produced entirely on Canadian soil. Previously, the rail service relied on equipment sourced from abroad or assembled in foreign plants. The new arrangement ensures that all 313 cars will be assembled and tested in Quebec and Ontario, providing a boost to the regional manufacturing base.
Alstom Canada, a subsidiary of the global rail firm, will manage the production process, leveraging its existing facilities and workforce in the two provinces. The partnership is expected to create a measurable number of skilled jobs throughout the supply chain, from component fabrication to final assembly.
The funding package not only covers the acquisition of the new cars but also includes provisions for their ongoing maintenance. This comprehensive approach aims to extend the service life of the fleet and improve reliability for passengers traveling across the country.
Government officials highlighted that the project demonstrates a commitment to modernizing Canada’s rail infrastructure while keeping the economic benefits within national borders. The rollout of the new cars is slated to begin after the manufacturing phase, with delivery timelines to be confirmed in subsequent phases of the program.