Carney picks Alstom for C$4.7B Via Rail passenger car contract

First new Via Rail cars scheduled to enter service in 2031

THUNDER BAY, Ontario — Speaking at Alstom’s factory here, Prime Minister Mark Carney said Thursday the federal government will spend about C$4.7 billion (US$3.4 billion) to acquire 313 new passenger railcars for state-owned Via Rail, contracting with the company to build the coaches entirely in Canada for the first time.

Carney called the deal the federal government’s largest investment yet in passenger rail. The new coaches will be assembled at Alstom’s operations in suburban Montreal and in northern Ontario, with the first units scheduled to enter service in 2031 and the full fleet delivered by the mid-2030s.

Carney said the contract marks the first time Via Rail’s passenger cars would be built exclusively in Canada. The federal government first flagged plans to replace the fleet in its 2024 annual budget plan but withheld an estimated cost during negotiations with potential suppliers.

Michael Keroulle, head of Alstom’s Americas operations, called the award “the contract of the decade.” He said the deal would contribute to economic activity in the region, government tax revenue and create hundreds of jobs at Alstom and across its Canadian supply chain.

Via Rail’s existing passenger railcar fleet dates back several decades and poses a “headwind to revenue growth,” according to the Crown corporation’s annual report. The report warns that “increased maintenance costs and reduced availability of equipment in upcoming years are to be expected until a replacement fleet is introduced.”

Via Rail carried 4.4 million passengers in 2025, recorded an operating loss of C$375 million, and received C$736 million in federal funding last year for operations and capital projects.

The C$4.7 billion disclosed Thursday follows the federal government’s earlier decision not to release a price tag during supplier talks. Ottawa’s 2024 budget plan had outlined the replacement of Via Rail’s passenger cars but did not include a dollar figure, with officials citing ongoing negotiations.