Canada Picks Alstom to Build Passenger Railcars in Multibilllion-Dollar Deal — Update

By Paul Vieira

OTTAWA--Canadian Prime Minister Mark Carney says the government is making its largest investment yet in a passenger rail as it has tasked Alstom to build 313 coaches.

At an Alstom factory in Thunder Bay, Ontario, Carney said the government would spend about 4.7 billion Canadian dollars (US$3.4 billion) to acquire new-generation passenger cars for state-owned Via Rail. Carney said this marks the first time the railcars would be built exclusively in Canada, with work done at the French company's operations in suburban Montreal and northern Ontario.

Michael Keroulle, head of Alstom's operation in the Americas, said this marked "the contract of the decade" for the company. He added 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.

Carney said the first new passenger cars are scheduled for service in 2031, and the entire fleet done by the mid-2030s.

The Canadian government initially disclosed plans to replace Via Rail's passenger cars in its 2024 annual budget plan, but at the time didn't disclose the cost citing negotiations with possible suppliers.

Montreal-based Via Rail's current passenger railcar fleet dates back several decades, according to the company's annual report, which it says poses a headwind to revenue growth. "Increased maintenance costs and reduced availability of equipment in upcoming years are to be expected until a replacement fleet is introduced," the company said.

The rail service carried 4.4 million passengers in 2025, and recorded an operating loss of 375 million Canadian dollars (US$270.9 million). Via Rail received C$736 million in government funding last year for operations and capital projects.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

September 03, 2026 12:16 ET (16:16 GMT)