Ottawa announced on July 29, 2026 that the Canadian federal government will invest nearly two billion U.S. dollars in a new locomotive program that will be assembled in Montreal, Quebec. The funding package was presented by officials from the Carney administration as part of a broader effort to boost domestic production of railway equipment.
The announcement specifies that the money will be directed toward the construction of new locomotives, with all assembly work to take place at facilities in Montreal. By locating the assembly process in the city, the federal government aims to expand the domestic manufacturing base for locomotives and reinforce the role of Canadian industry in the sector.
The Carney administration framed the investment as a strategic move to strengthen the national supply chain for rail transport. The nearly $2 billion allocation is intended to support the creation of a dedicated production line in Montreal, although the details of the production schedule or the number of units to be built were not disclosed.
The funding announcement follows a series of recent initiatives by the federal government to increase investment in Canadian manufacturing. By concentrating the locomotive assembly in Montreal, the program aligns with the government's stated objective of expanding domestic capabilities and reducing reliance on imported equipment. The initiative is expected to generate activity within the local industrial ecosystem, though specific outcomes have not been outlined.