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The federal government plans to spend $1.6 billion to replace 45 of Via Rail’s aging locomotives and another $357 million to build the new assembly and maintenance facility in Montreal.
What the Government Announced
45 new hybrid battery‑diesel locomotives are being purchased from Stadler.

$1.6 billion goes toward building the locomotives.

$357 million funds a new assembly and maintenance facility in Montréal, built by Pomerleau.

36 of the 45 locomotives will be assembled in Canada, bringing passenger locomotive assembly back to Montréal for the first time in 25+ years.

MacKinnon emphasized that this investment strengthens Canadian manufacturing and rail resilience.

Hybrid Locomotives: What’s Special
These will be North America’s first hybrid passenger locomotives:

Diesel + battery propulsion

Batteries supplied by ABB’s Montréal facility

Lower emissions and fuel consumption

Designed for extreme Canadian weather (‑50°C to +50°C)

The battery system improves acceleration, peak power, and allows zero‑emission operation in urban areas.

The New Montréal Facility
Located at VIA Rail’s Pointe‑Saint‑Charles maintenance centre

~100,000 sq ft expansion

Supports assembly of most locomotives and long‑term maintenance

Construction already underway

First Canadian‑assembled units expected around 2030

Economic Impact
The project supports ~1,200 full‑time jobs across manufacturing, construction, engineering, and maintenance.

It also strengthens Canada’s rail supply chain by shifting locomotive assembly back home.

Why the Fleet Is Being Replaced
VIA Rail’s current long‑distance locomotives (F40PH‑2/3 and P42DC) date from the late 1980s–2001 and are increasingly difficult to maintain:

Reliability issues

Extreme weather stress

Maintenance effort “grows exponentially” as they age

The new hybrids will improve:

Reliability

Performance

Fuel efficiency

Emissions reduction (up to 95% in some scenarios)

Where These Locomotives Will Operate
They will serve long‑distance, regional, and remote routes across Canada — e.g., Halifax–Québec, Montréal–Senneterre, and other non‑Corridor services.

(They do not replace the Siemens trainsets used in the Windsor–Québec City Corridor.)

Bottom Line
Canada is investing nearly $2 billion to:

Replace VIA Rail’s aging long‑distance locomotive fleet

Build a new Montréal assembly/maintenance facility

Introduce North America’s first hybrid passenger locomotives

Restore domestic locomotive assembly after 25 years

This is one of the biggest VIA Rail modernization steps since the 1980s.