Federal Investment in New Via Rail Cars

The federal government is investing over $4.7 billion in Via Rail as part of its Buy Canadian Policy, allowing for the purchase and maintenance of 313 new passenger rail cars from Alstom Canada.

This marks the first time in 40 years that all Via Rail passenger cars will be manufactured in Canada, as much of their current fleet was produced in the United States.

“They’ll be Canadian electricians that install the wiring, Canadian machinists that will make the precision parts, Canadian welders will build the steel frames from Canadian carbon steel,” Carney said at the Alstom Plant in Thunder Bay, Ont., on Thursday morning.

“That work reaches well beyond the factory floor into communities across our country.”

The manufacturing and assembly of these cars will take place in Thunder Bay and La Pocatière, Que., with design and engineering happening in Saint-Bruno-de-Montarville, Que.

The government estimates this project could bring more than $1.6 billion to the economy and support nearly 700 jobs across Ontario and Quebec.

Prime Minister Mark Carney speaks at the Alstom Plant in Thunder Bay, Ont. on Sept. 3 after announcing a $4.7 billion contract to build 313 new passenger cars for Via Rail. (David Jackson/The Canadian Press)

“We’ve announced the contract of the decade,” said Michael Keroullé, president and CEO of Alstom Americas.

“This is actually kind of the first time we get the opportunity to work with the national railroad, with Via Rail. But more importantly, we are replacing cars that are now 70 years of age, very old, long overdue in terms of replacement.”

This announcement comes while another major project is ongoing at the plant-final assembly of new subway cars for Toronto Transit Commission-with each car featuring 55 percent Canadian content.

No timeline has been set yet for when construction on the Via Rail cars will begin.

‘A lifeline’

This announcement signifies a significant investment in vital infrastructure, according to Mathieu Paquette, interim CEO of Via Rail Canada.

“For many Canadians, having Via Rail remains an essential service,” he said. “It’s more than just transportation; it’s a lifeline.”

The new fleet will consist of various sleeper cars and panorama dome cars, he added.

“The experience on board will be renewed. It will be more accessible, comfortable, modern for our passengers.”

Mathieu Paquette is interim CEO of Via Rail. He says the new contract with Alstom Canada emphasizes the importance of rail as an essential service. (Sarah Law/CBC)

For those working at Thunder Bay’s Alstom Plant, this contract brings job security after years filled with uncertainty according to Justin Roberts, president of Unifor Local 1075 which represents around 250 manufacturing workers there.

“The bulk of our workers have been just stressed over the last few years with all the layoffs and ends to other projects so stability isn’t there,” Roberts said.

Justin Roberts is president of Unifor Local 1075 which represents about 250 manufacturing workers at Alstom Plant in Thunder Bay Ont. He says this new contract with Via Rail brings relief for those who have faced years without certainty at work.(Sarah Law/CBC)

“With this contract it’s going to bring security and stability to these members. They can start buying houses again. They can start buying cars. They can spend money without worrying about losing their job or losing their homes if they can’t afford bills.”

This contract received praise from several local organizations like Thunder Bay Community Economic Development Commission and Northwestern Ontario Municipal Association.

Charla Robinson, presidentof Thunder Bay Chamberof Commerce, says she feels proudto be Canadianafterthisannouncement.

Charla Robinsonis presidentof Thunder Bay Chamberof Commerce. She saysthatthe new Via Railcontractwillbring”agenerationalchangeforourcommunity”.(Sarah Law/CBC)

“Alloftheunionrepswereinvolved. Allofthebusinesscommunity, theeconomicdevelopmentcommunity, themunicipalities-we wereallwritingletterstojustbringinthisforththeforefront,”Robinsonsaid.

“Itreallyisanexampleofhowwhenweallworktogether, wecanbuildastronger Canadaandastronger Thunder Bay.”

Evensas tensionsrise between Canadaandthe U. S., Robinsonsaysinvestmentsliketheseofferconfidenceevenwithglobaluncertainties.

“Thisisactionthatwillresultinastrongercommunity, strongermanufacturingsector, jobsforourcommunity, andtrainingopportunitieshereinourcommunityfordecadestocome,”shesaid.

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