The federal and Ontario governments are teaming up on a major investment to renew Toronto's transit infrastructure while firmly backing Canadian industry. The partnership will see nearly $2 billion flow into building 55 new subway trains for the Toronto Transit Commission's (TTC) Line 2, with a significantly increased requirement for Canadian-made components.
A "Buy Canadian" Boost for Manufacturing
The centrepiece of the announcement is a substantial increase in the mandated Canadian content for the new train fleet. The requirement has been raised to 55%, a jump of nearly 30% from the original plan. This strategic move is designed to ensure more parts are manufactured domestically, more jobs are created locally, and a greater portion of public tax dollars circulate within the Canadian economy.
Ontario Transportation Minister Prabmeet Sarkaria emphasized the dual benefits of the project. "Today’s announcement delivers on our government’s commitment to protect Ontario," he stated, confirming the trains will be assembled at Alstom's facilities within the province. He stressed that bolstering domestic manufacturing capacity is "critical to our economic prosperity and national security."
Substantial Funding and Job Creation
The financial commitment behind this initiative is considerable. Ontario had initially pledged $758 million in November 2023, contingent on a matching federal contribution. Ottawa fulfilled that condition in November 2024. With the enhanced Canadian content rules now in place, the total provincial investment has climbed to nearly $1 billion, which the federal government is matching dollar-for-dollar.
This combined investment of approximately $2 billion is expected to support more than 900 jobs across Canada. Key employment hubs include Alstom plants in Ontario, with significant roles also based in Thunder Bay, Kingston, and Toronto. Federal Infrastructure Minister Gregor Robertson framed the investment as a smart, forward-looking strategy. "Buying Canadian unlocks the full potential of our communities," he said. "By being our own best customer, we are ensuring that Canadians receive the maximum benefit from every tax dollar spent."
Modernizing an Aging Transit Line
The investment comes at a crucial time for Toronto's transit system. The current trains operating on Line 2, which runs 26 kilometres from Kipling Station in Etobicoke to Kennedy Station in Scarborough, are approximately 30 years old. They are nearing the end of their operational life, with rising maintenance costs and growing reliability concerns.
The new, high-capacity trains will each be able to carry up to 1,100 passengers, helping the TTC manage a projected daily ridership on the line of 661,000 by 2041. Toronto Mayor Olivia Chow welcomed the news, highlighting the direct impact on riders. "These new trains mean shorter waits, more reliable trips, and better connections across the city," she said, aligning the project with the goal of building a more affordable and functional Toronto.
Ontario's Economic Development Minister, Vic Fedeli, summarized the broader strategic importance. He noted that prioritizing Canadian-made content strengthens domestic supply chains, protects skilled workers, and reinforces the industrial base that supports both economic and national security interests. This substantial investment marks a significant step in renewing vital urban infrastructure while intentionally fostering Canadian manufacturing and job growth.
