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Feds announce almost $2B for 45 hybrid battery-diesel Via Rail passenger locomotives

Sarah Taylor by Sarah Taylor
July 29, 2026
in Canadian news feed
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Feds announce almost $2B for 45 hybrid battery-diesel Via Rail passenger locomotives
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The federal government has announced almost $2 billion in funding to modernize Via Rail’s passenger fleet with 45 new hybrid battery-diesel passenger locomotives. 

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Transport Minister Steven MacKinnon made the announcement in Montreal on Wednesday, highlighting that 36 of the 45 new locomotives built by Swiss rail manufacturer Stadler will be assembled in Canada.

“Today, for the first time in more than 25 years, we’re bringing passenger rail locomotive assembly back to Montreal,” MacKinnon said in a statement. 

“By combining Canadian expertise with world-class European innovation, we’re strengthening our economy while building a more resilient passenger rail network for the future.”

These Via Rail trains date back to the ‘50s. Is it time for a new fleet?

Via Rail passengers stranded in Winnipeg frustrated after long delay, cancellation

The funding to renew Via Rail’s aging fleet of locomotives was first announced in Budget 2024.

A government statement said $1.6 billion of the $1.95 billion the federal government is funnelling into the project will be used to pay for the construction of the new locomotives. 

Another $357 million will allow VIA Rail to build a new assembly and maintenance facility in Montreal. This new facility will be built by Canadian construction company Pomerleau.

The Liberal government said their nearly $2-billion investment will “support the equivalent of 1,200 full-time jobs throughout the project, including skilled manufacturing, construction, engineering and long-term maintenance jobs.” 

MacKinnon’s department said in a statement that the trains will be “North America’s first hybrid-powered passenger locomotives.”

Transport Canada also said that these new lower-emission trains will lay “the groundwork for future zero-emission propulsion,” but it does not put a timeline on when that will happen. 

The batteries powering the trains will be supplied by ABB, a Swiss-Swedish multinational corporation with facilities across Canada. The Via Rail batteries in the new trains will be supplied by ABB’s facility in Montreal’s Saint-Laurent borough.

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