Friday, January 16, 2026
The governments of Canada and Ontario announced an increase in their investments from $758 million to $950 million for the purchase of 55 new subway trains for Toronto’s Line 2, increasing the Canadian content of the agreement.
“The manufacturing of new subway trains at Alstom’s Ontario facilities will keep skilled workers on the job and ensure Ontario and Canada have the domestic manufacturing capacity that is critical to our economic prosperity and national security,” said Prabmeet Sarkaria, Ontario’s Minister of Transportation.
In November 2023, Ontario committed more than $758 million for new trains on the condition that the federal government match the investment to contribute to the City of Toronto’s purchase. The federal government subsequently did so in November 2024.
“Buying Canadian unlocks the full potential of our communities. By being our own best customer, we are ensuring that Canadians receive the maximum benefit from every tax dollar spent,” said Gregor Robertson, Minister of Housing and Infrastructure. “Our investment is helping to create good-paying jobs and encouraging economic activity across Canada, while delivering modernized public transit vehicles for our nation’s largest city.”
Funding for this project will support 946 Canadian jobs, including 285 at Alstom’s Ontario facilities, with 240 in Thunder Bay, 30 in Kingston and 15 in Toronto. The current 30-year-old Line 2 trains are nearing the end of their expected life, which would significantly increase costs to maintain safety if they continue in operation.
“Line 2 is getting a major boost for the people who ride it every day,” said Olivia Chow, Mayor of Toronto. “We applaud the provincial and federal governments for helping keep transit reliable for Torontonians. These new trains mean shorter waits, more reliable trips, and better connections across the city. We are working to deliver a more affordable, safe and caring city for Torontonians.”
Line 2 is a 26-kilometre subway line that connects residents from Etobicoke to Scarborough. The new high-capacity trains will be able to carry up to 1,100 passengers each, supporting growing demand on the line, where daily ridership is expected to reach 661,000 by 2041.
“We thank the Toronto Transit Commission and our government partners for their trust in Alstom to supply the new subway trains. These state-of-the-art trains will contribute to improving reliability and passenger comfort. This new fleet of subway trains will be designed and engineered here in Canada, assembled in our Thunder Bay site, supported by an expanded network of local suppliers, and tested in our Kingston site. With close to 1000 Canadian jobs created, these new subway trains set the bar for what it means to build in Canada, for Canadians,” said Michael Keroullé, president and CEO of Alstom Americas.
Featured image: The design of the New Subway Train (NST) fleet that will replace the aging fleet on Line 2 of Toronto’s subway system (Non-contractual design for illustrative purposes © ALSTOM SA 2026. Advanced & Creative Design | Metropolis™)
