In a new development of the Buy Canadian Policy, the federal government has allocated over $4.7 billion for Via Rail to procure and sustain 313 new passenger rail cars from Alstom Canada. This marks the first instance in forty years that Via Rail passenger cars will be entirely manufactured in Canada, a departure from much of the previous fleet constructed in the United States.
The announcement was made by Carney at the Alstom Plant in Thunder Bay, Ont., emphasizing the involvement of Canadian labor in the project. The new cars will see Canadian electricians, machinists, and welders contributing to their production using locally sourced materials.
Manufacturing and assembly of the rail cars will take place in Thunder Bay and La Pocatière, Que., with design and engineering work based in Saint-Bruno-de-Montarville, Que. The project is estimated to inject over $1.6 billion into the economy and create nearly 700 jobs in Ontario and Quebec.
According to Michael Keroullé, president and CEO of Alstom Americas, the contract signifies a significant milestone, as it replaces aging passenger cars that are over 70 years old, highlighting the necessity for their renewal.
The agreement coincides with another major project at the plant, where assembly of new subway cars for the Toronto Transit Commission is in progress, aiming for 55% Canadian content in each car. The timeline for the construction of the Via Rail cars has not been specified yet.
Mathieu Paquette, interim CEO of Via Rail Canada, described the investment as crucial for maintaining critical infrastructure, underscoring the vital role of rail service for many Canadians as a lifeline. The new fleet will feature a variety of sleeper cars and panorama dome cars, promising passengers a renewed and enhanced travel experience.
For employees at the Alstom Plant in Thunder Bay, such as Justin Roberts, president of Unifor Local 1075, the contract brings a sense of job security after a period of uncertainty, offering stability to workers and their families. Local organizations, including the Thunder Bay Community Economic Development Commission and Northwestern Ontario Municipal Association, have commended the contract, highlighting its positive impact on the community.
Charla Robinson, president of the Thunder Bay Chamber of Commerce, lauded the agreement as a transformative initiative that fosters collaboration across various sectors, promoting a stronger Canada and local economy. Amid escalating tensions between Canada and the U.S., investments like these provide reassurance and opportunities for growth, contributing to the long-term prosperity of the community and manufacturing sector.