Ottawa invests $1.95 billion in new hybrid locomotives for VIA Rail

Older VIA rail locomotives are to be replaced with new hybrid locomotives.

CANADA — The federal government is investing $1.95 billion to replace VIA Rail’s aging long-distance, regional and remote locomotive fleet, with final assembly of most of the new locomotives expected to take place in Canada.

Transport Minister Steven MacKinnon announced the investment July 29 in Montreal alongside VIA Rail interim president and CEO Mathieu Paquette.

Swiss rail manufacturer Stadler will receive $1.6 billion to produce 45 hybrid battery-diesel locomotives. Final assembly of up to 36 will be completed in Canada, marking the return of passenger-locomotive assembly to Montreal after more than 25 years.

Another $357 million will allow VIA Rail to build an assembly and maintenance facility at its Montreal Maintenance Centre. Canadian construction company Pomerleau will build the facility, which will also be used to maintain and operate the new fleet.

The federal government estimates the project will support the equivalent of 1,200 full-time jobs over its duration. The work will include manufacturing, construction, engineering and long-term maintenance positions, with most of the direct economic activity centred in Montreal.

The locomotives will replace equipment used on VIA Rail routes outside the Quebec City–Windsor Corridor, including services connecting regional and remote communities.

Stadler will design and manufacture the fleet through its locomotive operation in Spain while using Canadian suppliers and completing part of the assembly, testing and commissioning work in Canada. The contract also includes 20 years of technical support and spare-parts supply.

The locomotives will combine diesel-electric engines with battery-assisted traction. The batteries, supplied by ABB from its Saint-Laurent facility in Quebec, will store energy recovered during braking and help reduce fuel consumption.

Stadler says the locomotives will be able to operate in battery mode at stations and other sensitive locations, reducing noise and exhaust emissions. They are being designed to operate in temperatures as low as -50 C and at speeds of up to 160 kilometres per hour.

Transport Canada described the equipment as North America’s first hybrid-powered passenger locomotives. The battery systems are also intended to create a foundation for possible future adoption of zero-emission propulsion.

MacKinnon said the investment will create skilled manufacturing work, strengthen Canadian rail supply chains and improve passenger service.

Paquette said replacing the fleet will help preserve long-distance, regional and remote rail connections while developing additional rail expertise and maintenance capacity in Canada.

The project follows funding announced in the 2024 federal budget to replace VIA Rail equipment operating outside the Quebec City–Windsor Corridor. VIA’s fleet within that corridor was renewed through funding announced in 2018.