Mark Carney Announces $4.7 Billion Domestic Via Rail Fleet

Prime Minister Mark Carney announced a $4.7 billion investment to manufacture 313 new passenger cars for Via Rail Canada, marking the first time the fleet has been built domestically in 40 years. The contract was awarded to Alstom, which will utilize facilities in Thunder Bay, Ontario, as well as Saint-Bruno-de-Montarville and La Pocatière, Quebec. The new cars, including sleeper and dining options, are scheduled to enter service in 2031, following a July commitment of nearly $2 billion for new locomotives.

This shift to domestic production is a strategic move to reduce reliance on United States imports amid escalating trade tensions. The announcement comes as Canada prepares to impose countertariffs on September 8 in response to 50-per-cent tariffs imposed by U.S. President Donald Trump on $28 billion of Canadian goods. While U.S. Commerce Secretary Howard Lutnick claimed Canadian negotiators derailed trade talks for political gain, Carney dismissed the assertions and stated Canada remains ready to negotiate if its sovereignty is respected.

Transport Minister Steven McKinnon described the project as the largest single investment in the history of Via Rail Canada, expecting it to create 700 new jobs. The investment addresses an aging fleet that Via Rail Canada stated has increased maintenance costs and hindered revenue growth. Full fleet replacement is expected by the mid-2030s.