On July 29, 2026, Prime Minister Justin Carney announced that the federal government will invest roughly 2 billion Canadian dollars in a new locomotive program that will be assembled in Montreal, Quebec. The funding marks a direct commitment to expand Canada’s rail manufacturing capacity while updating the national locomotive fleet.
The money will be channeled to domestic manufacturers that will set up or expand assembly lines in Montreal. By locating production in the city, the government expects to generate jobs and to make use of the region’s existing industrial expertise, reinforcing Canada’s ability to produce complex rail equipment at home.
This investment is part of a wider federal effort to modernise the country’s rail assets and to reduce reliance on overseas suppliers. New locomotives are intended to replace aging units across the network, offering improved fuel efficiency, lower emissions and greater reliability for freight and passenger services.
The 2 billion allocation will be administered through standard procurement procedures, with contracts awarded to Canadian firms that meet the government’s performance and environmental criteria. The funding package includes provisions for research and development to ensure the locomotives incorporate the latest technology.
Officials highlighted that Montreal’s skilled workforce and established supply chain make it an ideal hub for the project. The decision aligns with broader discussions on strengthening Canada’s transportation infrastructure and enhancing the resilience of critical supply chains.
The programme is slated to begin later this year, with the first locomotives expected to roll off the Montreal assembly line in early 2028, subject to final design approvals and the completion of related infrastructure work.