CANADA: The federal government will invest CAD 1.95 billion in 45 hybrid locomotives and a Montréal assembly facility to renew VIA Rail’s long-distance, regional and remote fleet.

45 VIA Rail Hybrid Locomotives Funded in Canada
45 VIA Rail Hybrid Locomotives Funded in Canada. Photo: railway-news.com

CAD 1.95 Billion Covers Trains and a Montréal Facility

The Government of Canada announced the funding on 29 July 2026. Of the total, CAD 1.6 billion covers Stadler’s production of 45 locomotives, while CAD 357 million will finance a new assembly and maintenance facility at VIA Rail’s Montréal Maintenance Centre.

Stadler will use its international supply chain alongside Canadian suppliers and complete final assembly of up to 36 locomotives in Canada. Pomerleau will build the Montréal facility, returning domestic passenger-locomotive assembly for VIA Rail for the first time in more than 25 years.

The government estimates that manufacturing, construction, engineering and long-term maintenance work will support the equivalent of about 1,200 full-time jobs during the project. The locomotives will replace ageing equipment assigned to services outside the Québec City–Windsor Corridor, including long-distance, regional and remote routes.

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VIA Rail Hybrid Locomotives Deliver 4 MW

Battery modules supplied by ABB’s Saint-Laurent, Quebec, facility will support traction, onboard auxiliary systems and head-end power for passenger cars. According to Stadler’s contract announcement, combined battery and diesel operation will provide up to 4 MW at the wheel, 350 kN of starting tractive effort and a maximum operating speed of 160 km/h (100 mph).

The locomotives are being designed for temperatures as low as −50°C. Their batteries can recover and store braking energy, assist the diesel engines during operation and power the locomotives in stations or other environmentally sensitive areas, reducing local exhaust emissions and noise. The battery system is also intended to let a locomotive reach a safe location if its diesel powertrain fails.

Transport Canada describes the units as North America’s first hybrid-powered passenger locomotives. The federal funding implements a fleet-replacement commitment first included in Budget 2024, following the separate renewal of trains used in the Québec City–Windsor Corridor.

Stadler Adds a 20-Year Support Agreement

The locomotive contract includes a 20-year technical support and spare supply agreement. Stadler plans to establish a Canadian subsidiary and base service personnel at VIA Rail maintenance facilities in Montréal, Toronto, Winnipeg and Vancouver.

The new Montréal building will therefore serve two roles: final assembly for much of the order and long-term support for the fleet. The government and Stadler announcements did not provide a locomotive delivery schedule or a completion date for the facility.

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