TTC to sole-source contract for new Line 2 trains after green light given

The TTC has been given the green light to hand over a major contract for new trains on Line 2 to an Ontario-based company in a multi-government effort to shore up domestic production in the wake of American tariffs.

Toronto’s transit officials will be allowed to award a sole-source construction contract to Alstom Transport Canada for a total of 70 trains destined for the Bloor-Danforth, Yonge North and Scarborough Extensions.

In a joint federal-provincial-municipal announcement, the three levels of government said the “current competitive process for the trains has been cancelled” and bidders were notified that the city would choose the Canadian option instead.

“In the face of U.S. tariffs and economic uncertainty, this decision will support Canadian and Ontario workers with good manufacturing jobs and ensure reliable trains for Toronto transit riders,” the governments said in a news release.

Toronto is currently in the midst of an urgent procurement process to buy 55 desperately needed new cars to run on Line 2 — an expense both the federal and provincial governments are helping to pay for.

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While the city had been planning to open up bidding for the contract to all qualified companies, Transportation Minister Prabmeet Sarkaria wrote to Mayor Olivia Chow in April asking the city to change course.

“I am requesting that the City of Toronto recognize this historic opportunity and consider a sole-source procurement with Alstom, which would support Ontario workers in Thunder Bay and across our province,” Sarkaria said in the letter.

The effort was part of a broader push by the provincial government to cut U.S. companies out of the supply chain in response to tariffs and threats of further economic sanctions from President Donald Trump.

When the now months-long tariff battle with the United States began in the spring, Ontario Premier Doug Ford announced that his government would cancel a contract with Elon Musk’s Starlink company, remove U.S. alcohol from the shelves of the LCBO and ban American companies from bidding on provincial government contracts.

At the time, he urged cities to do the same. He repeated the request on Thursday after a speech in downtown Toronto.

“If we’re gonna buy trains, to the best of our ability, let’s buy here in Canada and preferably right here in Ontario,” he said.

In a statement, the government said that Alstom will be expected to deliver a product that’s compliant with the TTC’s original requirements for the trains, will maximize Canadian content and create Canadian jobs and offer a price point “subject to an independent third-party market price assessment.”

The order will be for 70 six-car train sets: 55 trains for Line 2, and 15 trains for the Yonge North and Scarborough extensions.

“The contract would include options to procure additional trains to meet future needs when funding is committed and subject to Alstom’s performance,” the news release said.

The TTC and Alstom will enter into negotiations over the contract over the next few months and will report back to the TTC board by the end of 2025.

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