VIA Rail Canada has announced that it has entered into a 5-year contract valued at over $100 million with CAD Railway Industries to rebuild its fleet of F-40 locomotives. The program involves stripping locomotives down to their shells and rebuilding them using the latest technology.

This project is a key component of the recently announced Government of Canada capital investment plan to improve the sustainability and reliability of Canada's passenger rail system. Beginning this month, car bodies will be repaired while the components of each system will be thoroughly inspected, and new systems will be installed to meet today's environmental as well as safety standards.

VIA expects to see a reduction of greenhouse gas emissions of up to 12% once the work has been completed, and this in addition to a GHG reduction of 13% since 1990. This program is one of the first to be announced following a significant capital investment from the federal government. "We are extremely pleased to announce that CAD Railway Industries ... is our first partner following the Government's investment," explained Paul Côté, president and ceo of VIA Rail Canada. "By rebuilding 70% of our fleet of locomotives, CAD will help us reach our goals of increasing reliability while decreasing maintenance costs. It is one of the many steps we are undertaking to modernize our fleet while ensuring all locomotives are in compliance with safety, environmental and other regulations, all as a means to providing our customers with the best travel experience.

CAD will begin the work this month. The first rebuilt locomotives should be ready by March 2009 and the project should be complete by 2012.

"We are excited to work on a key part of Canada's passenger rail infrastructure for VIA Rail," explained Fausto Levy, president of CAD Railway Industries. "The value CAD brings to this project is not only measurable in reduced maintenance costs and improved reliability of the locomotive: our work will also have a local impact by creating more than 90 new jobs in the area."

The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, expressed his satisfaction with the announcement: "The Government is pleased to see that the investment we have made in VIA Rail Canada is already being put to excellent use. We look forward to the rollout of the rebuilt F-40 fleet along with other
improvements to Canada's passenger rail service over the next five years. The improved reliability, safety, and frequency of these locomotives will benefit all Canadians."