The Government of Canada, the Province of Ontario and the City of Toronto have authorised the Toronto Transit Commission (TTC) to negotiate a single-source contract with Alstom Transport Canada Inc. for new Line 2 subway trains.

The decision follows the cancellation of the current competitive procurement process, with all previous bidders formally notified. Officials stated that the move responds to ongoing trade tensions, including US tariffs, while aiming to safeguard Canadian manufacturing jobs and maintain reliable service for transit users.

Toronto subway

Gregor Robertson, Minister of Housing and Infrastructure said:

To build the strongest economy in the G7, we need to ensure our investments are protecting jobs and championing industries right here in Canada. By partnering with Ontario, Toronto and the TTC, we are delivering reliable, affordable and sustainable public transit, and supporting good-paying jobs in Canada. We can all feel proud that these trains will be built for Canadians by Canadians.

Under the arrangement, Alstom will be required to:

• Supply trains that meet the TTC’s original technical requirements
• Maximise Canadian content and employment
• Subject pricing to an independent third-party market assessment

Negotiations with Alstom are expected to continue over the coming months, with a progress report due to the TTC Board by the end of 2025.

Prabmeet Sarkaria, Ontario’s Minister of Transportation said:

Our government is proud to protect Ontario from US tariffs by ensuring the TTC’s Line 2 subway trains will be made in Ontario, by Ontario workers. Working with our federal and municipal partners, we’ll continue to support Ontario workers and businesses while investing $70 billion in the largest subway expansion in Canadian history.

The base order covers 70 six-car train sets: 55 to replace ageing vehicles on Line 2, funded jointly by the federal, provincial and city governments; and 15 for use on the Yonge North and Scarborough subway extensions. The agreement would also allow for optional orders of additional trains, dependent on future funding and Alstom’s performance.

The TTC has said it is working to maintain the safety and reliability of the current Line 2 fleet until the new trains enter service.

TTC Chair Jamaal Myers said:

The TTC Board thanks the Government of Canada and the Province of Ontario for their continued collaboration with the City of Toronto to improve transit in our city. This partnership will deliver modern trains to keep our city moving and improve the TTC’s reliability while creating good paying Canadian jobs and strengthen our nation’s supply chain.

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