Travelers walk on the platform before boarding a VIA train in Ottawa, Ontario, Canada on December 10, 2019. (Photo by Daniel SLIM / AFP) (Photo by DANIEL SLIM/AFP via Getty Images)
The federal government has announced more than $4.7 billion for VIA Rail to acquire and maintain 313 new passenger cars, which will be designed and manufactured in Canada.
“These new passenger cars will be a tribute to Canadian talent, a showcase of our innovation, our expertise, and our industrial capacity,” Prime Minister Mark Carney said on Sept. 3 in Thunder Bay, Ont.
Carney said the cars will be manufactured in La Pocatière, Que., and assembled in Thunder Bay, Ont., with design and engineering work taking place in Saint-Bruno-de-Montarville, Que. He said these will include different types of passenger cars, such as dining cars, panorama cars, and sleepers.
The Prime Minister’s Office (PMO) said the funding is expected to support nearly 700 jobs in Ontario and Quebec and generate more than $1.6 billion in economic benefits. Alstom Canada, which will manufacture the cars, is expected to work with its network of more than 900 Canadian suppliers and increase its use of Canadian steel.
The Sept. 3 funding builds on Ottawa’s July 29 announcement that it would provide $1.95 billion in funding for 45 new hybrid battery-diesel locomotives for VIA Rail. Transport Minister Steven MacKinnon had announced that $1.6 billion would go toward the construction of the new trains, while $357 million would be used to build a new assembly and maintenance facility in Montreal.
The PMO said the funding measures aim to help replace aging equipment to ensure Canadians can “rely on modern and reliable passenger rail service for decades to come.”
During the press conference, reporters asked Carney about a 2023 report that found VIA Rail’s on-time performance had declined by more than 23 percent over the previous decade. The report cited delays caused by freight railways, which own most of the tracks used by VIA Rail, and asked whether Ottawa was considering measures to improve competition.
Carney said that “more needs to be done” to ensure VIA Rail has greater access to track capacity, and said part of the solution will be the Alto high-speed rail from Toronto to Quebec City.
“Part of the value of Alto is it creates significant additional capacity, and the integration of the regional routes with that high-speed rail will increase competition in all forms of transport and improve reliability and service,” Carney said.
While Alto currently estimates the project will cost around $90 billion, an internal 2023 government document obtained by The Globe and Mail estimated the broader cost at about $150 billion over 40 years, including operating and maintenance expenses.
The Conservative Party has said it opposes the Alto project, citing its cost and concerns about potential land expropriation affecting farmers.