OTTAWA, July 29 (Xinhua) -- Canada has selected European rail manufacturer Stadler to replace its aging passenger locomotive fleet under a 1.95-billion-Canadian-dollar (nearly 1.4-billion-U.S.-dollar) government investment, Transport Canada announced Wednesday.
The Switzerland-headquartered Stadler will supply 45 new hybrid battery-diesel locomotives for national passenger rail operator VIA Rail Canada, replacing the fleet servicing long-distance, regional and remote routes outside the busy Quebec City-Windsor Corridor, said the ministry in a news release.
The investment showcases the strength of Canada's economic partnership with Europe, bringing the final assembly of up to 36 locomotives back to the country, said the release.
According to the release, the new locomotives, powered by hybrid battery-diesel technology with batteries supplied by ABB from its Saint-Laurent facility, will become North America's first hybrid-powered passenger locomotives.
A free trade agreement between Canada and the European Free Trade Association (EFTA), of which Switzerland is one of the four members, came into force in 2009. The announcement marks one of the largest Canadian Crown corporation procurements ever awarded to a company headquartered in an EFTA member state, added the release. ■