Prime Minister Mark Carney announced Wednesday that VIA Rail passenger cars will be built in Canada for the first time in four decades, as part of what the federal government is calling the largest investment in VIA Rail’s history.
The federal government is investing more than $4.7 billion for VIA Rail to acquire and maintain 313 new passenger rail cars from Alstom Canada. The cars will be manufactured and assembled in Thunder Bay, Ont., and La Pocatière, Que., with design and engineering work taking place in Saint-Bruno-de-Montarville, Que.
Officials say the investment will support nearly 700 jobs in Ontario and Quebec and generate more than $1.6 billion in economic benefits. Under the government’s Buy Canadian Policy, Alstom will leverage and expand its network of more than 900 Canadian suppliers in delivering the new fleet while maximizing the use of Canadian steel in structural assemblies, supports and fabricated metal elements.
The government says the investment comes as VIA Rail’s long-distance, regional and remote fleet approaches the end of its useful life, with some equipment more than 70 years old. Combined with a recent $1.95-billion investment in 45 new passenger rail locomotives and a new assembly and maintenance facility in Montreal, the federal government’s total investment in renewing VIA Rail’s fleet now exceeds $6.6 billion.
“In the face of strong headwinds, a confident Canada is choosing to build,” Carney said. “For the first time in four decades, VIA’s passenger cars will be built in Canada. Cars once made in the United States, now made here at home. This means new contracts for Canadian suppliers, good jobs for Canadian workers, and paycheques that stay in Canadian cities and towns. That’s how we build Canada strong.”
Transport Minister Steven MacKinnon said the investment would deliver a more modern rail system for Canadians.
“Canadians deserve a passenger rail system that is modern, reliable, and built to serve them for generations to come,” MacKinnon said. “This investment delivers exactly that while supporting good-paying Canadian jobs and strengthening our domestic rail manufacturing sector. By assembling these rail cars in Thunder Bay and La Pocatière, supported by Canadian design and engineering expertise in Saint-Bruno-de-Montarville, we are investing in Canadian workers, Canadian innovation, and a stronger, more resilient economy.”
Patty Hajdu, minister of jobs and families and minister for the Federal Economic Development Agency for Northern Ontario, said the announcement was welcome news for the region.
“This investment is great news for Thunder Bay and for Northern Ontario,” Hajdu said. “Building the passenger rail cars in Canada means good-paying, skilled jobs for Canadians and new opportunities for local businesses that are part of the rail supply chain. With this investment, we’re strengthening our economy, supporting communities, and ensuring Canadian workers continue to play a leading role in building the future of passenger rail right at home.”
Mathieu Paquette, interim president and chief executive officer of VIA Rail Canada, said the new cars would retain the fleet’s signature features while modernizing service.
“Today’s announcement marks a defining step in shaping the future of VIA Rail’s pan-Canadian fleet,” Paquette said. “These new Canadian-built passenger rail cars will retain signature features such as dome cars, full-service dining, and social areas, while incorporating modern amenities, improved accessibility, and greater reliability. They will help us preserve essential services to remote communities and elevate the unique onboard experience that allows passengers to discover Canada in a way that only train travel can offer. We thank the Government of Canada for this historic investment in the future of passenger rail.”
The 313-car fleet will include dining cars, panorama cars and sleepers, and will serve VIA Rail’s eight long-distance, regional and remote routes outside the Quebec City-Windsor corridor, connecting Indigenous, rural and remote communities across eight provinces. More than 216,000 passengers travelled on those routes in 2025.
