The federal government has announced almost $2 billion in funding to modernize Via Rail’s passenger fleet with 45 new hybrid battery-diesel passenger locomotives. 

Transport Minister Steven MacKinnon made the announcement in Montreal on Wednesday, highlighting that 36 of the 45 new locomotives built by Swiss rail manufacturer Stadler will be assembled in Canada.

“Today, for the first time in more than 25 years, we’re bringing passenger rail locomotive assembly back to Montreal,” MacKinnon said in a statement. 

“By combining Canadian expertise with world-class European innovation, we’re strengthening our economy while building a more resilient passenger rail network for the future.”