High-Speed Rail for Ontario and Québec Could Drive Billions in Benefits

February 21, 2025 – A dedicated high-frequency or high-speed passenger rail link in the Toronto–Québec City corridor could deliver between $11 billion and $27 billion in cumulative benefits over 60 years, according to a new report from the C.D. Howe Institute.

In “All Aboard: The Benefits of Faster, More Frequent Passenger Trains between Ontario and Québec and The Costs of Delay,” David Jones and Tasnim Fariha analyze the potential economic advantages of a dedicated rail line. The study forecasts that the project could markedly reduce travel times and road congestion, attract millions of new rail riders, enhance business connectivity, and cut transportation-related greenhouse gas emissions. On Feb. 19, the federal government announced the development of a high-speed rail network in the corridor.

“Canada is the only G7 country without high-speed rail. The Toronto–Québec City corridor has some of the highest population density and economic activity in the country, yet rail infrastructure is decades old and passengers often experience delays,” says Jones, a C.D. Howe Institute Senior Fellow. “Our research estimates that by introducing faster, more frequent service on dedicated tracks, Canada could generate multi-billion-dollar benefits in productivity, travel-time savings, and cleaner transport options.”

The authors forecast that a new dedicated passenger line with conventional rail speeds (up to 200 km/h) could yield $11-$17 billion in economic gains, while a true high-speed corridor (up to 300 km/h) could see $15-$27 billion. Under the high-speed scenario, travel times are estimated to reduce to three hours (from five) between Montreal and Toronto and to around two hours (from four and a half) between Ottawa and Toronto. Whichever scenario policymakers choose, the gains are substantial.

Jones and Fariha explain Canada certainly risks forgoing billions in economic and environmental benefits by delaying the project. They note, however, that their report does not evaluate the projects’ costs, and that there might be industrial benefits in addition to those they evaluate in the report.

Citizens in many other advanced economies can enjoy the types of benefits that this type of project can bring about, says Fariha. “A dedicated passenger rail service in the Toronto-Québec City corridor would provide the type of 21st-century infrastructure Canada badly lacks.”

Read the Full Report

For more information, contact: David Jones, Senior Fellow, C.D. Howe Institute; Tasnim Fariha, Senior Policy Analyst, C.D. Howe Institute; Percy Sherwood, Communications Officer, C.D. Howe Institute, 416-407-4798, psherwood@cdhowe.org.

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.