In a significant move under the Buy Canadian Policy, the federal government has allocated over $4.7 billion for Via Rail to procure and upkeep 313 new passenger rail cars from Alstom Canada. This marks the first instance in 40 years that Via Rail’s passenger cars will be entirely manufactured in Canada, a departure from the predominantly U.S.-made existing fleet.

Speaking at the Alstom Plant in Thunder Bay, Ont., Prime Minister Mark Carney emphasized the involvement of Canadian workers in the project, stating that Canadian electricians, machinists, and welders would play crucial roles in the production process. The manufacturing and assembly of the cars will take place in Thunder Bay and La Pocatière, Que., with design and engineering work based in Saint-Bruno-de-Montarville, Que.

The government anticipates that the initiative could inject over $1.6 billion into the economy and create nearly 700 jobs in Ontario and Quebec. Michael Keroullé, president and CEO of Alstom Americas, referred to the venture as the “contract of the decade” and stressed the importance of replacing the aging 70-year-old cars with new ones.

Aside from the Via Rail project, another significant undertaking at the plant involves the final assembly of new subway cars for the Toronto Transit Commission, each comprising 55% Canadian content. While a construction timeline for the Via Rail cars has not been established, Mathieu Paquette, interim CEO of Via Rail Canada, hailed the investment as a crucial step in bolstering essential rail services.

The new fleet will feature various sleeper cars and panorama dome cars, enhancing the overall passenger experience. Justin Roberts, president of Unifor Local 1075 representing manufacturing workers at the Alstom Plant in Thunder Bay, expressed relief over the job security the contract provides after a period of uncertainty and layoffs.

Local organizations, including the Thunder Bay Community Economic Development Commission and Northwestern Ontario Municipal Association, lauded the contract, with Charla Robinson, president of the Thunder Bay Chamber of Commerce, emphasizing the collaborative effort behind the achievement. Despite ongoing tensions between Canada and the U.S., investments like these are seen as vital for the community’s strength and stability in the face of global uncertainties.