In February 2025, the Canadian government announced the launch of a new $3.5 billion federal program, “Future Rail.” The initiative aims to modernize freight and passenger rail lines, particularly in rural and remote regions where rail remains a key transportation link.
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The primary focus is on upgrading rails, ties, and signaling systems on sections that have not been upgraded since the 1990s. The situation is particularly critical in northern Ontario and Quebec, where aging infrastructure slows the delivery of essential goods and agricultural products.
The program also includes funding for VIA Rail, the national passenger operator. The purchase of 32 new electric and hybrid trains is planned for routes between Toronto, Ottawa, Montreal, and Quebec City. This is expected to reduce travel times by 15% and reduce CO₂ emissions by 40%.
Particular attention is being paid to integrating rail with other modes of transport. Multimodal terminals are being built in the ports of Vancouver and Halifax, where containers can be quickly transferred from ships to trains. This strengthens Canada’s position as a transit artery between Asia and North America.