Canada makes biggest-ever Via Rail investment with $4.7 billion passenger car deal

The Canadian government is spending $4.7 billion to build 313 new Via Rail passenger cars in Canada, Prime Minister Mark Carney announced on Thursday.

The new passenger cars will be manufactured at Alstom's plant in Thunder Bay, Ontario, marking the first time Via Rail passenger cars have been built in Canada in 40 years.

Canada’s transport Minister Steven McKinnon said the project represents the largest single investment in Via Rail's history and is expected to create 700 new jobs.

The announcement is part of a broader federal investment in Canada's passenger rail network and domestic manufacturing sector.

In July, the federal government announced nearly $2 billion in funding for new Via Rail locomotives.

The new trains are expected to enter service in 2031.

Carney announced the funding from the Alstom manufacturing facility in Thunder Bay, where the new cars will be produced.

The $4.7-billion commitment also comes as the federal government increasingly promotes Canadian manufacturing and domestic supply chains for major infrastructure projects.