French and Swiss firms to build new VIA Rail passenger cars and locomotives in $6.7-billion fleet overhaul

VIA Rail’s long-distance services, including trains serving Vancouver and Prince Rupert, are proceeding with a major upgrade through the Government of Canada’s investment of more than $4.7 billion in new passenger rail cars and long-term support.

Alstom Canada will supply 313 passenger rail cars to replace the aging fleet of VIA Rail’s Long-Distance, Regional, and Remote (LDRR) routes. The first cars are expected to begin carrying passengers in 2031, with the entire order in service by 2035.

The agreement, announced last month, includes approximately $4 billion for the passenger rail cars and nearly $700 million for technical support and spare parts over 15 years, according to Alstom Canada.

This does not include the separate cost of ordering new locomotives through another supplier, Stadler, which brings the total fleet renewal cost to about $6.7 billion.

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Alstom Canada is the Canadian division of French train manufacturing giant Alstom, which bought Canadian-based Bombardier’s train manufacturing division in 2021. Alstom Canada has major manufacturing facilities in southern Ontario and Quebec, and it is also building new trains for Toronto’s subway and Vancouver’s SkyTrain.

“In the face of strong headwinds, a confident Canada is choosing to build. For the first time in four decades, VIA’s passenger cars will be built in Canada,” said Prime Minister Mark Carney.

“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.”

The existing fleet has an average age of approximately 77 years old, with much of the equipment approaching retirement.

VIA Rail previously told Daily Hive Urbanized the current LDRR fleet is the oldest active train fleet in North America, with most of the cars built between 1947 and 1955 — right after the Second World War.

In Summer 2024, VIA Rail and the federal government first announced the strategy to replace over 300 passenger cars and locomotives used in the LDRR fleet. A subsequent bidding process led to the selection of Alstom Canada.

The new VIA Rail cars will serve routes connecting nearly 400 communities. The LDRR routes include Vancouver-Toronto (The Canadian), Prince Rupert-Jasper, Winnipeg-Churchill, Sudbury-White River, Montreal-Senneterre, Montreal-Jonquiere, and Montreal Halifax. This network extends approximately 12,500 km across eight provinces and carried more than 216,000 passengers in 2025.

In 2025, The Canadian — VIA Rail’s 4,466-km-long route between Vancouver and Toronto, spanning four days and four nights of travel — marked its 70th anniversary, using the same fleet when it was first launched in 1955.

This order built by Alstom Canada includes nine types of cars, allowing VIA Rail to accommodate everything from shorter seated trips to overnight journeys with private sleeping accommodations.

The overhaul promises more comfortable interiors, improved accessibility, and updated onboard technology, while keeping familiar features such as dome cars, dining facilities, and sleeping accommodations.

“These new 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,” said Mathieu Paquette, the interim president and CEO of VIA Rail.

“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.”

Among the purchases are 58 coach cars, 78 sleeper cars, 26 accessible sleeper cars, and 20 Prestige sleeper cars. The fleet will also include 38 panorama cars, 25 dome cars, 20 dining cars, 19 berth cars and 29 baggage cars.

VIA Rail will continue offering its Economy, Sleeper Plus and Prestige service classes.

Accessibility is to be incorporated into the design of the cars, with accessible spaces in each class and a connected path between cabins, washrooms, dining facilities, and other key amenities.

The cars must also withstand Canadian weather extremes, with design and testing requirements covering temperatures from -50°C to 50°C.

Environmental requirements include ensuring at least 90 per cent of the cars’ materials can be recovered when they are retired. Other planned features include better insulation, efficient lighting, reduced water consumption, and onboard facilities for separating recycling, organic waste and garbage.

The cars will be designed and engineered at Alstom’s Saint-Bruno-de-Montarville facility in Quebec. Their bodies will be manufactured in La Pocatiere, Quebec, before final assembly in Thunder Bay, Ontario.

Alstom estimates the contract will create or support up to 670 direct jobs within its Canadian operations, with additional employment among suppliers and other businesses. The company projects a contribution of more than $1.6 billion to Canada’s GDP.

The passenger car purchase forms part of a wider replacement of VIA Rail’s LDRR fleet.

In July 2026, the federal government announced a separate $1.6-billion program for 45 hybrid battery-diesel locomotives from Swiss train manufacturer Stadler, including 20 years of technical support and spare parts. Another $357 million will fund a new assembly and maintenance facility in Montreal. Combined, the total contract value to Stadler is about $1.95 billion.

This brings VIA Rail’s entire LDRR fleet overhaul cost — the combined value of the Alstom and Stadler contracts — to about $6.7 billion.

The locomotives will use battery systems supplied by ABB’s Saint-Laurent facility in Quebec. These are intended to reduce fuel consumption and allow operation on battery power alone in certain scenarios, such as switching to 100 per cent battery mode at stations and environmentally sensitive areas to significantly reduce noise and exhaust emissions.

As well, the battery provides a backup ability for a locomotive to reach a safe location in the unlikely event of a diesel powertrain failure. The locomotives will also be able to use renewable diesel.

These locomotives will be able to operate at a speed of up to 160 km/h, with superior acceleration and performance on steep slopes.

The first locomotives are expected to enter passenger service in 2029, with the full fleet operating by 2032.

The Montreal facility, also scheduled for completion in 2029, will handle final assembly, testing, and preparation for service for up to 36 of the locomotives, followed by their long-term maintenance.

Passenger cars will arrive later and enter service gradually alongside VIA Rail’s existing fleet, allowing the railway to keep operating as the older fleet is replaced through 2035.

Canada appears to be in the very early stages of entering a long-haul passenger rail renaissance.

All of this is in addition to the federal government’s previous 2018 funding to VIA Rail to acquire new Siemens Venture trains dedicated to the Southern Ontario-Quebec corridor between Windsor and Quebec City through Toronto and Montreal. VIA Rail ordered 32 sets of five-car Siemens Venture trains (160 cars) for $1 billion, with the first new train entering service in late 2022 and the last train delivery made in 2025.

The Siemens Venture trains were originally acquired to be fully compatible with VIA Rail’s future high-frequency rail service on the Windsor-Quebec City corridor, with frequent, more reliable service running at speeds of up to 200 km/h.

Since then, the high-frequency rail concept has been abandoned in favour of Alto — the federal government’s new high-speed rail project over a 1,000-km-long route between Toronto and Quebec City. Trains will run at speeds of up to 300 km/h or more.

A new federal Crown corporation separate from VIA Rail has been created to oversee Alto. As well, following a bidding process, the federal government selected a private consortium called Cadence to plan, design, build, operate, maintain, and help finance Alto.

Cadence is a joint venture that includes SNCF Voyageurs — the French government-owned company that operates France’s high-speed rail network — and the French transportation engineering firm SYSTRA, as well as Canadian institutional investor La Caisse (formerly known as CDPQ and backed by the Quebec pension fund), Canadian engineering firm AtkinsRealis (formerly SNC-Lavalin), and Air Canada.

La Caisse and AtkinsRealis are also involved in the private-public projects of Vancouver’s SkyTrain Canada Line and Montreal’s new REM metro network.

The first phase of Alto between Ottawa and Montreal could begin construction as early as 2029, and reach completion in 2038. The remaining phases of Alto could reach completion in the 2040s. Cadence would be the long-term operator of the system.

Additionally, last month, the Government of Alberta launched a similar bidding process seeking a private sector proponent to design, build, operate, maintain, and partially finance a high-speed rail line linking Calgary and Alberta. It would be part of the Alberta government’s broader long-term passenger rail vision for the province.

Both Alto and Alberta’s high-speed rail projects have been referred by Prime Minister Mark Carney to the federal Major Projects Office to prioritize and help expedite approvals and planning.

Furthermore, just last month, Amtrak Cascades — the passenger rail route linking Vancouver, Seattle, and Portland — began using its brand-new Airo (Siemens Venture variant) trains for regular service. The entire Amtrak Cascades fleet is being replaced by the Airo fleet. Amtrak Cascades is the first route to benefit from Amtrak’s U.S.-wide order of new Airo trains. The Government of Washington state is working with the Government of British Columbia and Government of Oregon to explore building a cross-border, high-speed rail linking all three major cities in the Pacific Northwest.

You might also like:
• VIA Rail to order over 300 passenger cars and locomotives for Canada-wide train fleet replacement
• Alto high-speed rail construction to start in 2029 with Ottawa-Montreal segment
• Federal government to expedite Alto, Canada's first high-speed rail project
• Alberta’s high-speed rail plans just took a major step forward
• What the passenger rail system in Alberta may look like by the 2080s
• High-speed rail terminus station should be at Vancouver International Airport, says YVR CEO
• New trains begin serving passengers on Amtrak Cascades, reaching Vancouver