The Government of Canada, the Province of Ontario, and the City of Toronto have authorised the Toronto Transit Commission's (TTC) move to seek a single-source contract with Alstom Transport Canada for new Line 2 subway trains.
This decision comes as a strategic response to US tariffs and economic uncertainties, aiming to bolster Canadian employment and ensure the delivery of reliable trains for Toronto commuters.
The previous competitive bidding process for these trains has been terminated, and all contenders have been duly informed.
Alstom's contract stipulates adherence to the TTC's original requirements, the maximisation of Canadian content and job creation, and pricing that will be verified by an independent third-party to reflect fair market value.
TTC CEO Mandeep S. Lali said: “I would like to thank our funding partners for their support of our new subway trains. With the intention of maximising Canadian content and supporting Canadian jobs, we will enter into negotiations with Alstom to secure the best product at the best price.”
Negotiations with Alstom are anticipated to unfold over the upcoming months, with a progress report to be presented to the TTC Board by the year's end.
The procurement includes an initial order of 70 six-car train sets, of which 55 will replace the ageing fleet on Line 2.
The remaining 15 will service the Yonge North and Scarborough extensions, with provisions for additional trains subject to future funding and Alstom's performance.
Ontario Minister of Transportation Prabmeet Sarkaria 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 $70bn in the largest subway expansion in Canadian history.”
Unifor, the Canadian private sector union, has expressed satisfaction with the tri-level government confirmation that the TTC subway trains will be manufactured at Alstom's Thunder Bay facility.
This decision secures positions for workers of Unifor Local 1075 with Unifor members to construct the 70 six-car trains.
Unifor national president Lana Payne said: “This decision to formally award this contract to Alstom speaks volumes with respect to how we must support Canadian workers, local industries, economies and communities. We need to see more of this if we are to build a more resilient Canadian economy.”
Earlier in January, Ontario pledged nearly C$500m ($348.56m) for the refurbishment of 181 GO Transit bi-level rail coaches, a project expected to sustain hundreds of jobs at the Alstom Thunder Bay plant.