May 4, 2009

Government of Canada and VIA Rail award rolling stock overhaul and accessibility upgrading contracts

MONCTON, May 4, 2009 - The overhaul of nearly one-quarter of VIA Rail Canada's passenger car fleet and important accessibility improvements to 12 of its newest trainsets were announced today by Canada's Minister of State for Transport, Rob Merrifield, VIA President and CEO Paul Côté and Richard Carpenter, President of Industrial Rail Services, Inc. (IRSI) of Moncton.

"This government's support of VIA Rail, through the Economic Action Plan, will create skilled jobs and stimulate the economy across Canada," said Minister of State Merrifield. "We are pleased to be taking action that will provide faster, more frequent, more reliable passenger rail service across Canada."

The Light, Rapid and Comfortable (LRC) fleet overhaul, a $98.9 million contract, will fully renew all 98 of VIA's Canadian-built cars. The overhaul will not only renew them for up to 20 additional years of fast, comfortable and reliable service, but also reduce their energy requirements by up to 20 per cent, making them more cost-effective and reducing their already-low environmental footprint.

The $5.8 million Renaissance rolling stock contract will upgrade 21 cars in the 106-car fleet to offer new levels of accessibility for travelers with special requirements on many trains in the Quebec-Toronto segment of VIA's main corridor and on its overnight Montreal-Halifax Ocean.

"I want to thank the Government of Canada for its recognition of the potential of passenger rail through these substantial and cost-effective investments in VIA's fleet," said Mr. Côté. "It is an investment that not only stimulates the economy, but responds to the clear indications that Canadians want and will support more and better passenger rail service. As the custodians of that transportation service, the people of VIA are proud to make these improvements on their behalf."

The two contracts awarded to IRSI will create 135 new jobs and 613,000 person hours of employment at IRSI, as well as 50 additional jobs at associated companies and suppliers. The projects are part of an unprecedented investment in passenger rail modernization and expansion by the Government of Canada.

Richard Carpenter, President of IRSI, said, "I can think of no better way for us to be celebrating the 10th anniversary of our company and our long association with VIA. The people of Moncton and all of our highly-skilled employees will take great pride in contributing to the physical renewal of a form of travel that is obviously the smart, safe and sustainable alternative today."

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Backgrounders:

VIA's LRC Fleet
VIA's Renaissance Fleet