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May 21, 2025
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Deutsche Bahn Loses Billion-Dollar Contract in Canada

Ontario’s transit agency has ended its 2024 contract with Deutsche Bahn and Aecon meant to operate and maintain the GO and UP Express networks opting instead to retain Alstom for the foreseeable future. The decision dissolves a 23-year agreement before any handover and leaves questions over costs and next steps.
Deutsche Bahn Loses Billion-Dollar Contract in Canada
Jonas Junk - Unsplash

Metrolinx quietly severed ties with Deutsche Bahn and Aecon Group, less than two years after the joint venture ONxpress Transportation Partners had been awarded a 23-year contract to operate and maintain GO Transit and UP Express beginning January 1, 2024. Despite preparatory work toward takeover, no formal handover to the partnership ever took place.

In a brief statement to the Toronto Star, Metrolinx spokesperson Andrea Ernesaks confirmed that both Deutsche Bahn and Aecon “worked closely toward this goal,” but said the parties are now negotiating “an amicable settlement to end the partnership.” Details on the original contract’s value, and any payments made to date, were not disclosed, nor did Deutsche Bahn or Aecon respond to requests for comment.

Alstom, which previously managed GO’s operations and maintenance, will continue in that role indefinitely. “Metrolinx is committed to providing a safe, reliable transit service,” Ernesaks said, noting that more than 120,000 daily riders depend on GO and UP Express.

The ONxpress consortium had also been responsible for designing and building key elements of the GO expansion formerly known as Regional Express Rail at an estimated construction cost of $1.6 billion. The wider project aims to convert GO into an all-day, two-way regional network with 15-minute core service on lines including Lakeshore East and West, Stouffville, Kitchener and Barrie, targeting over 200 million annual boardings by 2055.

Industry watchdogs had earlier flagged risks in the public–private procurement model, warning that shifting partners could delay the multibillion-dollar initiative. As Metrolinx moves forward, stakeholders will be watching closely to see how the agency restructures both the operations contract and the broader expansion timeline.

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