Feds announce $4.7B for new Via Rail cars to be built in Ontario, Quebec

Feds announce $4.7B for new Via Rail cars to be built in Ontario, Quebec

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Carney announces $4.7B to build rail cars in Canada instead of U.S.

In the latest push of its Buy Canadian Policy, the federal government is spending more than $4.7 billion for Via Rail to acquire and maintain 313 new passenger rail cars from Alstom Canada.

This will be the first time in four decades that Via Rail passenger cars will be built entirely in Canada. Much of its existing fleet was built 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 cars will be manufactured and assembled in Thunder Bay and La Pocatière, Que., with design and engineering work taking place in Saint-Bruno-de-Montarville, Que.

The government projects the project could generate more than $1.6 billion for the economy and support nearly 700 jobs across Ontario and Quebec.

“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.”

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The announcement comes as another big project is underway at the plant, which will handle the final assembly of new subway cars for the Toronto Transit Commission, each of which will include 55 per cent Canadian content.

There is no timeline yet for the Via Rail cars’ construction.

The announcement represents a major investment in critical infrastructure, said 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 fleet will include a range of 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.”

For those at Thunder Bay’s Alstom Plant, the contract represents job security after years of uncertainty, said Justin Roberts, president of Unifor Local 1075, which represents about 250 manufacturing workers there.

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

“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 the worry of losing their job and then losing their homes if they can't afford to pay the bills.”

The contract was praised by several local organizations, including the Thunder Bay Community Economic Development Commission and Northwestern Ontario Municipal Association.

Charla Robinson, president of the Thunder Bay Chamber of Commerce, said the announcement made her proud to be Canadian.

“All of the union reps were involved, all of the business community, the economic development community, the municipalities — we were all writing letters to just bring this to the forefront,” Robinson said.

“It really is an example of how when we all work together, we can build a stronger Canada and a stronger Thunder Bay.”

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While tensions continue to escalate between Canada and the U.S., Robinson said investments like these bring reassurance despite uncertainties on the global stage.

“This is action that will result in a stronger community, a stronger manufacturing sector, jobs for our community, training opportunities here in our community for decades to come,” she said.

Sarah Law is a CBC News reporter based in Thunder Bay, Ont., and has also worked for newspapers and online publications elsewhere in the province. Have a story tip? You can reach her at sarah.law@cbc.ca.