Tag: procurement

  • Procured and then

    ALTO HSR Citizen Research Initiative · Brief · September 2026

    Procured, and Then?

    ALTO commissioned the outside view. Whether it changed anything is the one question the record does not answer.

    In Plain Language

    The standard fix for over-optimistic infrastructure forecasts is to check them against what comparable projects actually cost and carried, rather than trusting the project’s own bottom-up numbers. That check is called reference-class forecasting, and ALTO commissioned one. It hired the firm founded by the researcher who developed the method.

    That is to ALTO’s credit. But commissioning a check and acting on it are different things, and only one document would show which happened: a comparison putting ALTO’s own published figures beside the ones the check produced. The Initiative asked for that record. The response was extended to 18 September 2026, with notice that a third party would be consulted — a step the Act provides for where an institution intends to release records that may contain a supplier’s commercial information.

    Meanwhile, in June 2026, ALTO published two studies putting large dollar values on the project’s benefits. Neither sets those benefits against what the line would cost. This brief looks at all three documents and asks what they show about how the project’s numbers are being assembled — and what a single unredacted release would settle.

    Download
    Procured, and Then? (PDF)
    The full brief, with sources
    Download PDF
    Related
    HPR Research Report, Chapter 1
    The forecasting framework this brief applies, set out in full
    Read Chapter 1
    01 · The Instrument

    ALTO commissioned the outside view

    Chapter 1 of the HPR Research Report sets out the method this brief relies on, so it is only summarised here. Large infrastructure forecasts miss in a consistent direction: costs come in high, benefits come in low. The established corrective is to stop treating a project as unique and instead compare it against the recorded outcomes of projects like it. The technique has a name — reference-class forecasting — and a literature behind it.

    In 2024 ALTO issued an advance contract award notice, PAS240625-002-00, for reference-class forecasting, should-cost and should-schedule modelling, and a series of Challenge Boards. An advance contract award notice is the instrument used when a department intends to award without competition, on the basis that only one supplier can do the work. The named supplier was Oxford Global Projects, the consultancy founded by Bent Flyvbjerg and Alexander Budzier.

    This is worth stating plainly, because it cuts against the easy criticism. ALTO did not ignore the outside view. It went out and procured it, from the people who developed it.

    02 · The Question

    Buying the instrument is not the same as letting it bind

    Reference-class forecasting corrects a forecast only if the number it produces is permitted to move the decision. A should-cost that is commissioned, delivered and then filed next to an unchanged inside-view estimate has not corrected anything. The method’s own literature is explicit that the failure mode is not the absence of the outside view but its subordination — the number produced, and then declined.

    So the decisive record is not the existence of the forecast. It is the comparison: does ALTO’s published capital cost reflect its own reference-class should-cost, or diverge from it? One document would answer that — the inside view and the outside view set side by side.

    A test, not an accusation

    This yields something better than a claim about anyone’s conduct: a prediction that can be checked. If the commissioned reference-class figures are more conservative than the numbers ALTO has published, the outside view was procured but not applied. If they match, the Initiative’s cost critique weakens accordingly.

    We do not know which. Nothing in this brief asserts that ALTO set the analysis aside. The point is that the question is answerable, that a single document answers it, and that the document exists.

    03 · The Clock

    The record will arrive after the decision has moved on

    The Initiative requested the reference-class records under access to information — the workbook, the should-cost and should-schedule outputs, and above all any document setting the inside view beside the outside view. Request A-2026-0004 was met in June 2026 with a ninety-day extension carrying the response to 18 September 2026, together with a notice invoking third-party consultation under section 27.

    Section 27 consultation is a routine step, and it is worth being precise about which way it points. The section applies where the head of an institution intends to disclose a record that may contain a third party’s commercial information: the notice tells that third party of the intention to release and gives it twenty days to make representations against disclosure, and invoking the section is what permits the response time to be extended. The notice on A-2026-0004 therefore records that Alto has turned its mind to releasing the reference-class records and has given Oxford Global Projects the opportunity to object. It is not a signal that the material will be withheld.

    What remains is a question of timing rather than intent. The third party may object and the institution may then withhold some of the figures; equally it may not. What can be said is the sequence: the record capable of testing the decision will arrive after further commitment has been made. What it contains, the disclosure itself will settle.

    Why timing decides this

    An outside-view check disciplines a decision only while the decision is still open. Once enough money is committed, the arithmetic changes: the cost of stopping is subtracted from the cost of continuing, and a project can show better value for money the more has already been spent on it. Britain’s High Speed Two reached exactly that point — the National Audit Office found in June 2026 that the ratio for completing the programme had risen even as the programme grew more expensive, because the estimated cost of cancelling had more than quadrupled.

    The cheapest moment to apply the test is before that crossover, not after it.

    04 · The Benefit Case

    Two studies, no cost side

    In June 2026, two months after the consultation closed, ALTO released two commissioned studies. A computable general equilibrium assessment by Aviseo Consulting reports a national real GDP gain of about $24.4 billion a year. A corridor tourism study by CPCS with HDR adds up to $3.9 billion in GDP and 43,000 jobs.

    Neither nets a cost. The macroeconomic study excludes construction and operating expenditure by design; the tourism study has no cost side to exclude. Both are benefit totals unaccompanied by the outlay required to obtain them. Both, to their credit, describe their outputs as illustrative and order-of-magnitude rather than forecasts, and make the largest figures conditional on tourism policy the railway itself does not deliver.

    The scenario range has a floor and no ceiling on the downside

    Each study is built as a fan of scenarios, from pessimistic to optimistic. In both, the entire fan sits above zero. The macro study reports welfare increasing in every scenario; the tourism study’s weakest case is still $177 million and two thousand jobs. The modelled question is how large the gain is, never whether there is a loss.

    Adverse mechanisms are identified but do not reach the total

    The tourism study acknowledges that faster trains shorten stays and convert overnight visits into day trips, and shows length of stay falling in several cities. The aggregate rises regardless.

    The two studies disagree, and each resolves the disagreement upward

    The macro study omits domestic tourism on the ground that it is largely substitution from other household spending, with little net effect on national output. The tourism study builds most of its $33.7-billion base, and most of its headline uplift, from precisely that in-corridor domestic travel — counted through gross multipliers that assume no such displacement. The two treatments diverge, and in each case the treatment adopted is the one that yields the larger figure for that study.

    The studies import the literature’s upside but not its realisation record

    Both studies draw their benefit magnitudes from the international high-speed rail literature — the same comparison set the Initiative uses. What they import is the size of the upside. What they do not import is that literature’s record on realisation: rail benefits arriving at about two-thirds of forecast, and passenger numbers overstated by roughly a hundred per cent.

    Each of the four observations above is a description of what the documents contain. Taken together they describe a benefit case in which every point of divergence has resolved in the same direction — which is the pattern the forecasting literature says to look for, and the reason an independent outside-view comparison matters more, not less, once numbers of this size are in circulation. The same two studies are examined in detail in the Initiative’s briefs Two Point Two Trillion and At Face Value.

    05 · The Ask

    Publish the comparison

    The Initiative’s recommendation is narrow and does not require anyone to accept a word of its own analysis.

    01
    Release the comparison in full. ALTO should publish its reference-class should-cost and should-schedule outputs alongside its published capital cost and benefit-cost figures, unredacted. The outside view was commissioned to be seen, not filed.
    02
    Publish the benefit studies against a cost. A $24.4-billion annual benefit figure is not interpretable without the outlay required to obtain it. The two June 2026 studies should be accompanied by an appraisal that nets one against the other.
    03
    Apply the test before further commitment. The window in which an outside-view check can still change a decision is open now. It narrows with every disbursement.

    It requires one document to be made public. The framework behind the request is set out in full in Chapter 1 of the HPR Research Report; what ought to be built instead is the subject of the chapters that follow it.

    How to read this brief

    Every figure attributed to Alto, Aviseo, CPCS, the National Audit Office or a published paper is quoted from the source listed below and can be checked there. Nothing else here is a calculation of ours: the argument rests on what the documents contain and on the sequence of dates, not on a competing estimate.

    Where a record has not been released, this brief says so rather than inferring its contents, and makes no claim about why any extension was taken or any figure was or was not published. The prediction in section 02 is stated in both directions and will be settled by the disclosure, not by us.

    Sources

    Documents relied on

    1
    Alto (VIA HFR – VIA TGF Inc.). Advance Contract Award Notice PAS240625-002-00 — project management and control expertise; pre-identified supplier Oxford Global Projects UK Limited. 2024.
    2
    Alto (VIA HFR – VIA TGF Inc.). Notice of extension, Access to Information request A-2026-0004. June 2026. On file with the Initiative.
    3
    Aviseo Consulting. An Overview of the Structural Economic Impacts of Alto: Computable General Equilibrium Modelling Approach to Assessing High-Speed Rail in the Toronto–Québec City Corridor. Prepared for Alto. June 2026.
    4
    CPCS, in association with HDR. Tourism in the Alto Corridor: Current Conditions and Potential Impacts. Prepared for Alto. June 2026.
    5
    National Audit Office. High Speed Two reset. Report by the Comptroller and Auditor General, Session 2026-27, HC 52. London: National Audit Office, June 2026.
    6
    Flyvbjerg, Bent. “Quality Control and Due Diligence in Project Management: Getting Decisions Right by Taking the Outside View.” International Journal of Project Management 31, no. 5 (2013): 760–774.
    7
    Flyvbjerg, Bent. “Top-Ten Behavioral Biases in Project Management: An Overview.” Project Management Journal 52, no. 6 (2021): 531–546.
  • Ready to tender

    Ready to Tender, Not Yet Approved

    Cadence has opened the procurement for the first segment of ALTO — while its own notice says the project is not yet approved.

    ⚠ What the document says

    On June 23, 2026, Cadence — the private partner chosen to develop ALTO — published a Preliminary Notice to Market for the Ottawa–Montreal segment, the first part of the line to be built. It sets out the contracts, the delivery models, and a tendering schedule that starts this summer. Cadence PNM

    The same notice states that construction has “no official launch date” and that the entire build-and-operate phase is “subject to the government of Canada’s final confirmation of the investment.” In other words: the machinery to build this is being switched on before the decision to build it — and the money to pay for it — has been confirmed.

    The point in one sentence

    You do not need an access-to-information request to see this one. It is a public document, unredacted, published by the developer itself — and on its own pages it does two things at once: it commits the construction industry to a two-year tendering calendar for the project’s biggest contracts, and it confirms that the project is not yet funded, not yet finally approved, and does not yet have a confirmed start date.

    This is the same sequence this Initiative has documented at every earlier stage: the commitment comes first, the decision that would justify it comes later. What is new is that it is now happening in the open, in the developer’s own words, rather than in a briefing note released years after the fact.

    None of this settles whether high-speed rail should be built. It is a question about order of operations — whether a project should be this far into procurement before the public analysis, the final business case, and the funding decision are in place.

    Read the source
    Cadence Preliminary Notice to Market — Central Segment
    A public document (document no. ALTO-CPDP-00000-PW-080000-500BC10-000001F), issued June 2026 by Projet Cadence Rail s.e.c. Available in French and English.
    Download PDF
    What it is

    A tender calendar, not a green light

    A “Preliminary Notice to Market” is a signal to construction firms: here is the work that is coming, here is roughly when it will be tendered, start putting your teams together. Cadence is careful to say it is not a formal call for bids and not a commitment to buy anything. That caution is worth taking at face value — but it cuts both ways. The document is not a decision to proceed; it is the paperwork that gets the supply chain ready to proceed. And it is being issued now, ahead of the decision that determines whether there is anything to proceed to.

    The notice is explicit about that gap. It says construction is “contemplated to begin in 2029–2030, although no official launch date has been confirmed,” and that the build-and-operate phase — the phase where the line actually gets built — happens only “subject to the government of Canada’s final confirmation of the investment.” Yet the tendering timetable it publishes does not wait for that confirmation. It begins in the summer of 2026.

    Summer
    2026
    first major tender opens (trains), with stations and the Montreal tunnel to follow through 2027
    Cadence PNM, Table 2
    2029–30
    construction “contemplated,” but with no confirmed start date
    Cadence PNM
    Not yet
    federal investment decision — the build phase is “subject to” it
    Cadence PNM

    The order here is the whole story. Under any ordinary reading of how a public project should work, the sequence is: decide whether to build it, confirm the money, then tender the work. This notice runs two of those steps in parallel — the tendering starts while the decision and the money are still described, on the same pages, as outstanding.

    The Two Columns

    What the notice commits to, and what it leaves open

    The clearest way to read the document is to line up what it treats as fixed enough to build a procurement schedule around against what it says is still undecided. Both columns are drawn from the same notice.

    Treated as ready to tenderStill described as undecided
    The contract packages. The notice sets out more than seventeen contract packages (WP1–WP17) — trains, signalling, stations, the Montreal access tunnel, two major bridges, and the track itself — each with a delivery model already assigned.The final route. The “more precise corridor” is still promised for autumn 2026. For the Toronto–Ottawa segment, the notice leaves open the choice between a northern route through the Canadian Shield and a southern route through farmland — unresolved.
    The timetable. A tender calendar running from summer 2026 (trains) through 2027–2028 (tunnel, bridges, civil works), package by package.The start date. Construction has no confirmed launch date; 2029–2030 is described only as “contemplated.”
    The delivery company. A dedicated entity, “InfraCo,” led by CDPQ Infra, is to be the contracting party for all the builders, with a second company, “OpCo,” to run operations.The funding. The entire build-and-operate phase is “subject to the government of Canada’s final confirmation of the investment” — which the notice does not report as having been given.
    The technical spec. Design speed of 320 km/h; full electrification; no level crossings; a twin-bore tunnel roughly 15 km long and 9 m wide under the Riviere des Prairies and Mount Royal into Montreal.The business case. No final business case has been published. The government’s own answer to Parliament in June 2026 was that the cost-benefit, net-present-value, and 30-year subsidy figures are “not finalized.”

    Read together, the two columns describe a project detailed enough to hand contractors a two-year work plan, and unsettled enough that its route, its price, its business case, and its go-ahead are all still open. Those are not usually true of the same project at the same time.

    The Machinery

    What is actually being tendered

    The notice divides the first segment into more than seventeen work packages. Most people following this issue do not need the package numbers — but the shape of the list matters, because it shows how much of the hardest and most expensive work is being brought to market before its design is finished.

    The trains and the systems come first

    The first tender out the door, in summer 2026, is for the rolling stock — roughly 60 trainsets. The signalling and control systems follow in the autumn. These are network-wide contracts: they are written for the first segment but carry options to extend to the rest of the line later.

    The tunnel and bridges are tendered before they are fully designed

    The single most demanding piece — the Montreal access tunnel, a twin-bore ~15 km bore under a river and a mountain into the downtown — is brought to market on an early-involvement basis because its design and ground conditions are not yet settled. Two major bridges (the Riviere des Mille-Iles and the Ottawa River) are in the same position. The riskiest, priciest work is being tendered at the point where the least is known about it.

    The benefit numbers arrive without a source

    The notice repeats headline figures — $24.5 billion a year in GDP, more than 50,000 construction jobs, 5,000 operating jobs — with no study, method, or citation attached to any of them. They are stated as facts in a document whose own government has told Parliament the underlying cost-benefit analysis is not finished.

    Who Runs It

    Who is in the room

    The notice confirms the structure of the group that would build and run the line. This is a matter of public record from the document itself; it is set out here as fact, not as accusation.

    Cadence is a consortium. The notice names CDPQ Infra (the infrastructure arm of Quebec’s public pension fund) as the lead infrastructure and equity member, with Air Canada as an equity member; SYSTRA and AtkinsRealis as the design leads; and Keolis and SNCF Voyageurs as the operations leads. The new delivery company, “InfraCo,” would be led by CDPQ Infra and would sit above and contract with all the individual builders.

    Two features are worth noting plainly, both straight from the document. First, the same consortium that is designing the strategy also sits atop the company that will award and manage the contracts — while the notice’s own rules bar consortium members from bidding on the major contracts and require engineering firms to take part “as subcontractors.” Second, Air Canada — the airline whose routes this train is meant to compete with — is an equity holder in the developer, a position the notice describes by reference to the airline’s experience linking its flights with rail in Europe. Readers can weigh what those arrangements mean; the point here is only that the developer’s own notice puts them on the record.

    The Fine Print

    Three things easy to miss

    The contracts would be in English only

    The notice contemplates publishing the major contracts in English only, with French “courtesy versions” available on request — a notable choice for a federal project running through Quebec and Ontario. It justifies this by pointing to the English-language agreement Cadence signed with Alto.

    You may not talk to the people who run it — except through Cadence

    Firms taking part in the procurement are told they “must refrain from any direct communication” with “Project Stakeholders” — a category the notice defines to include landowners and communities — except as Cadence permits, on pain of disqualification.

    A federal law puts the project largely beyond local jurisdiction

    The notice cites the High-Speed Rail Act, which declares the railway a “work for the general advantage of Canada.” That designation places the project under federal jurisdiction and applies provincial and municipal law only “to the extent that such laws may validly apply” — the mechanism that narrows what municipalities and provinces can require.

    None of these is hidden. They are in the notice, in plain sentences. They are collected here because, together, they describe a procurement that is moving quickly, keeping tight control of who may speak to whom, and operating under a statute that limits local say — all before the funding decision the same document says is still to come.

    Where things stand · July 2026

    Summary ledger

    Reading the notice against the question a citizen would reasonably ask — is this project actually decided? — here is where the document leaves things.

    Under way
    Procurement. Tendering for the first segment’s major contracts begins summer 2026 and runs through 2028.
    Under way
    Delivery structure. InfraCo (led by CDPQ Infra) and OpCo are to be set up as the contracting and operating companies.
    Stated but unsourced
    Benefits. $24.5B annual GDP, 50,000+ construction jobs, 5,000 operating jobs — asserted with no study or method attached.
    Not yet done
    Final route. The precise corridor is promised for autumn 2026; the Toronto–Ottawa north/south choice is left open.
    Not yet done
    Business case. No final business case published; the government told Parliament the cost-benefit, NPV, and subsidy figures are “not finalized.”
    Not yet done
    Start date. Construction has no confirmed launch date; 2029–2030 is only “contemplated.”
    Not yet done
    The go-ahead. The build-and-operate phase is “subject to the government of Canada’s final confirmation of the investment” — not reported as given.

    The top of that list is moving. The bottom of it is not. A procurement this advanced usually means a project this decided — and by the developer’s own account, this one is not. The notice asks the construction market to get ready to build something the government has not yet committed to build, at a price no one has finalized, on a route not yet chosen. The reasonable question for anyone following this is not whether the train is a good idea. It is why the building has started before the deciding.

    Sources

    Primary documents

    1.
    Projet Cadence Rail s.e.c., Preliminary Notice to Market / Avis préalable au marché — Alto Project Central Segment, document no. ALTO-CPDP-00000-PW-080000-500BC10-000001F, dated June 23, 2026 (cover) / June 22, 2026 (milestone table). A public document issued in French and English. All quotations and figures in this brief — the tender schedule (Table 2), the “no official launch date” and “subject to…final confirmation of the investment” language, the WP1–WP17 package structure, the InfraCo/OpCo and consortium structure, the 320 km/h and tunnel specifications, the English-only contract approach, the stakeholder-communication restriction, and the GDP and jobs figures — are drawn from this notice. citizenresearch.ca (PDF)
    2.
    Government of Canada, response to Order Paper Question Q-1191 (Scott Reid, Lanark–Frontenac), House of Commons, tabled June 17, 2026 — source for the statement that the project’s cost-benefit, net-present-value, and 30-year subsidy figures are “not finalized.”
    3.
    ALTO / Cadence, statements that a more precise corridor is to be unveiled in autumn 2026, referenced in the notice’s appendix and in prior public communications.

    This brief summarizes a single public document in plain language. It does not argue that high-speed rail should or should not be built; it examines the order in which this procurement is proceeding relative to the decisions that would authorize it. A fuller treatment of the notice appears in the Initiative’s Accountability Record.

  • steel

    Three Hundred Thousand Tonnes

    ALTO’s Buy Canadian commitments measured against the technical reality of high-speed rail steel.

    ⚠ On the Record: ALTO CEO on the Domestic Rail Steel Gap

    On September 30, 2025, in an interview with The Logic, ALTO chief executive Martin Imbleau publicly confirmed that the high-carbon-density rail steel required for the 4,000+ kilometres of HSR track is not produced in Canada today. The Canadian Steel Producers Association corroborated: Canadian rail steel production was lost to decades of US free-trade integration. Re-establishing domestic capability would require retooling Algoma Steel or ArcelorMittal Dofasco, with federal financing not yet announced. The Logic

    Critical Finding

    ALTO and Cadence have committed to a Buy Canadian procurement approach for the high-speed rail network. For the steel categories outside the running rails — structural beams for bridges and stations, reinforcing steel, catenary masts, ancillary components — Canadian capacity exists and the framing is operationally credible. For the running rails themselves, the binding constraint is the absence of domestic production capability. The largest rail supplier in North America — the Pueblo, Colorado mill, now Rocky Mountain Steel under the Orion Steel umbrella — is installing a new Danieli mill specifically tooled for HSR-grade rails. Sourcing from Pueblo is politically constrained by 50% US tariffs on Canadian steel. International suppliers (voestalpine, Nippon Steel, ArcelorMittal Europe) are the default fallback.

    The framing-versus-reality gap is closeable — through federal financing of domestic retooling, through honest public framing, or through both — but it is not closed today, and the time available to close it before procurement decisions are locked in is finite. ALTO’s chief executive has already made the underlying admission on the record. Ministerial communications and the project’s own procurement framing have not yet caught up.

    Download
    Three Hundred Thousand Tonnes — Full Brief (PDF)
    Comprehensive category-by-category analysis of ALTO’s Buy Canadian commitments against domestic and international steel supply realities
    Download PDF
    The Tonnage

    What 300,000 tonnes of rail means in context

    ALTO and Cadence have publicly characterized the steel demand of the project as “several hundred thousand tonnes,” with a more specific figure of 4,000+ kilometres of running rails. That rail-steel quantity is the only firm number on the public record. The remaining steel categories must be estimated from the corridor’s stated parameters: 1,000 km of mainly electrified, dedicated passenger track at 320 km/h design speed, with seven stations, multiple major terminals, and a fleet of 30–40 trainsets.

    ~300,000
    tonnes of high-carbon-density rail steel (4,000+ km of running rails)
    Imbleau, on record
    30–40%
    share of total project steel demand represented by running rails (rebar included)
    CRI estimate
    2029–30
    major construction start; pre-procurement activities begin 2026
    ALTO published timeline
    CategoryTonnageBasis
    Running rails≈ 300,000 tImbleau, on record (Sept 2025). 4,000 km × ~60 kg/m HSR profile.
    Turnouts, switches, special trackwork10–20,000 t~200–400 turnouts at 25–50 t each.
    Catenary support structures30–60,000 t17,000–20,000 masts for 1,000 km double-track.
    Structural steel — bridges and viaducts50–150,000 tRoute-dependent; concrete-dominant with steel girders at long spans.
    Structural steel — stations50–100,000 tSeven stations including major terminals.
    Maintenance facilities and depots10–30,000 tMain depot per segment plus secondary facilities.
    Rolling stock (trainsets)10–25,000 t~30–40 trainsets at 400–500 t each, ~60% steel by mass.
    Signal masts, fencing, ancillary15–30,000 t1,000 km × two sides of fencing plus signal portals.
    Reinforcing steel (rebar)200–500,000 tThe wild card — share of viaducts and slab track. Often bundled into concrete supply contracts.

    Outside the running rails, structural beams, plate, rebar, catenary masts, and most ancillary components can be supplied by Canadian producers — ArcelorMittal Dofasco in Hamilton, Algoma Steel in Sault Ste. Marie, Stelco. The Canadian Steel Producers Association has confirmed this: Canadian producers will have no trouble supplying almost all of the structural steel. The supply gap is specifically the high-carbon-density rail steel.

    The Cost Asymmetry

    From tonnes to dollars

    Tonnage and dollars do not move together. Steel categories differ in unit price by an order of magnitude — from commodity-priced rebar at one end, to premium HSR rails in the middle, to specialty manufactured trackwork at the high end. When the tonnage figures from the previous section are converted to approximate value using industry reference pricing, the categories that cannot be sourced from Canadian producers represent a substantially larger share of the procurement than tonnage alone suggests.

    ~35%
    by tonnage: share of steel that cannot currently be sourced from Canadian producers (rails, specialty trackwork, rolling stock steel)
    CRI estimate
    ~50%
    by value: same share when tonnes are converted to dollars (steel categories only, excluding rolling stock)
    CRI estimate, reference pricing
    ~3×
    price multiple: per-tonne cost of HSR-grade rail steel relative to standard commodity rebar
    industry reference pricing
    CategoryApprox tonnageReference price (CAD)Approx value (CAD)
    Running rails — HSR profile~300,000 t$2,500–$3,500 / t$750M – $1.05B
    Turnouts, switches, special trackwork10–20,000 t$8,000–$12,000 / t$120M – $180M
    Catenary support structures30–60,000 t$2,500–$3,500 / t$115M – $160M
    Structural steel — bridges, viaducts50–150,000 t$1,800–$2,500 / t$180M – $250M
    Structural steel — stations50–100,000 t$1,800–$2,500 / t$135M – $190M
    Maintenance facilities, depots10–30,000 t$1,500–$2,000 / t$30M – $40M
    Signal masts, fencing, ancillary15–30,000 t$1,500–$2,000 / t$34M – $45M
    Reinforcing steel (rebar)200–500,000 t$1,000–$1,200 / t$350M – $420M

    The pattern is consistent across categories. Rebar — the largest tonnage line outside the running rails, and a category Canadian producers and importers can supply without difficulty — is also the cheapest per tonne, pricing in commodity markets at roughly $1,000–1,200 CAD. HSR-grade running rails carry a premium of roughly three times that price, reflecting the high-carbon-density specification, head-hardening, and the limited number of mills globally capable of producing 100-metre rails to the relevant hardness. Specialty HSR trackwork — high-angle switches, swing-nose crossings — is sold as engineered units rather than commodity steel, and its effective per-tonne cost is closer to ten times that of rebar.

    Rolling stock: separate procurement, larger scale

    Rolling stock is not included in the per-tonne table above. HSR trainsets at 320 km/h design speed are procured as complete vehicles, with steel content representing only a small fraction of the trainset value — the larger value sits in propulsion, electronics, interiors, and signalling. A fleet of 30–40 trainsets at current-generation HSR reference pricing of roughly $50 million USD per trainset implies a separate trainset procurement of $2 to $3 billion CAD. This procurement is overwhelmingly foreign-sourced, because HSR trainsets at this design speed are not manufactured in Canada (Canadian-based final assembly under Alstom ownership is possible, but the trainset content is overwhelmingly imported).

    Including rolling stock procurement alongside the steel categories, the foreign-sourced share of the project’s combined steel and rolling-stock procurement rises to approximately 65–75% by value.

    A Buy Canadian framing measured in tonnage would substantially overstate the share of the project that domestic suppliers can win. A framing measured in dollars would more accurately reflect both the procurement at stake and the structural reason for the asymmetry. The categories where Canada does not have current capacity — premium-grade rail steel, specialty trackwork, complete trainsets — are also, structurally, the highest-margin categories of railway procurement. They command a premium price precisely because they require specialized capability and capital investment that Canada lost or never developed. Closing the tonnage gap is one decision; closing the value gap is a substantially larger one.

    Reference prices are open-market commodity and specialty steel ranges in Canadian dollars, drawn from industry trade reporting (MEPS International, Steel Business Briefing, Railway Gazette market commentary). Actual contract prices for the ALTO procurement may differ from these reference ranges depending on specifications, contract structure, currency, tariff conditions at the time of procurement, and bundling decisions. The ranges above are intended to illustrate the order-of-magnitude differences between categories, not to predict procurement outcomes.

    What ALTO has said in public

    The Buy Canadian commitments

    ALTO’s published commitments on steel sourcing combine federal policy framing, ministerial communications, and the project’s own procurement-page language. They are not contractual undertakings to source any percentage of steel from Canadian producers; they are statements of intent, supported by an outreach process that began in November 2025.

    November 18, 2025

    “This initiative is one of Canada’s largest infrastructure investments in decades. It is about strengthening our country by building more here at home. This new High-Speed Rail Network will be transformational.”

    — Steven MacKinnon, Minister of Transport, on ALTO/Cadence steel industry outreach announcement. ALTO

    November 18, 2025

    “We will need huge quantities of steel, and we want Canadian steelmakers to be ready to respond to request for proposals, because they are coming fast! This is a massive opportunity for Canadian suppliers, and we want to make sure they can seize it.”

    — Daniel Farina, General Manager, Cadence consortium.

    February 2026 · ALTO procurement page

    “Building on the government’s Buy Canadian initiative, ALTO will seek to leverage domestic resources by sourcing key components for the future rail network from Canadian suppliers wherever possible … However, we recognize that the scale and technical complexity of the project will require the input of international experts and technologies that are not currently deployed in North America.”

    — ALTO Procurement page, altotrain.ca. altotrain.ca

    ALTO has not committed to a percentage Canadian-content target. It has not committed to a domestic-rail-steel timeline. It has not committed to require Cadence to source rails from any particular jurisdiction. The commitments are aspirational: Canadian suppliers preferred where possible; outreach to inform the procurement approach; international suppliers used where domestic capability does not exist. The third commitment is the operative one for rails.

    Comparison · By Steel Category

    The technical reality, category by category

    Each major steel category is assessed for domestic capacity using the same three-state ledger applied elsewhere in CRI’s analysis: Met (Canadian production exists at the required scale and specification); Partial (Canadian production exists but capacity, specification, or timeline is constrained); Not Met (Canadian production does not currently exist at the required specification).

    Running rails — high-carbon-density HSR profile

    ALTO’s claim / framingTechnical / market reality
    Canadian suppliers will be preferred for the 4,000+ km of steel rails required by the network. The Minister of Transport has framed the project as an opportunity for Canadian steelmakers to expand capacity. Federal industrial policy supports the framing.Imbleau, on the record (Sept 30, 2025): “We need 4,000 kilometres of steel track that has a high carbon density. None is produced today in Canada.” The Canadian Steel Producers Association confirms the gap is structural: Canadian rail steel production was lost to decades of US free-trade integration. Re-establishing capability would require retooling, with the business case dependent on sustained demand beyond ALTO. The Logic
    Domestic capacity:Not met

    Turnouts, switches, special trackwork

    ALTO’s claim / framingTechnical / market reality
    Implicit in Buy Canadian framing — outreach to the Canadian steel industry covers “core materials.”HSR-grade specialty trackwork (high-angle switches, swing-nose crossings) is a niche international market dominated by European and Japanese specialty manufacturers (voestalpine VAE, Vossloh). Canadian capacity for HSR-grade specialty trackwork does not currently exist at scale.
    Domestic capacity:Not met

    Structural steel — bridges, viaducts, stations

    ALTO’s claim / framingTechnical / market reality
    Structural beams are a named component of Canadian steel sourcing in ALTO’s announcements. CSPA has confirmed Canadian producers can supply the category without difficulty.Canadian capacity exists. ArcelorMittal Dofasco (Hamilton), Algoma Steel (Sault Ste. Marie), and Stelco produce structural beams, plate, and heavy sections at the scales required. The federal government has pledged more than $800 million to ArcelorMittal and Algoma for equipment upgrades. The constraint is order timing and competing demand, not absolute capacity.
    Domestic capacity:Met

    Reinforcing steel (rebar)

    ALTO’s claim / framingTechnical / market reality
    Rebar is not specifically called out in ALTO’s public framing. In practice, rebar is usually bundled into concrete supply contracts and may not appear under “steel procurement” at all.Canadian producers and importers serve the rebar market at the volumes required. Even if total rebar demand reaches 500,000 tonnes — the upper bound estimate — domestic plus traditional import channels can supply this with no project-specific intervention required.
    Domestic capacity:Met

    Catenary masts and electrification infrastructure

    ALTO’s claim / framingTechnical / market reality
    ALTO’s framing names “catenaries” as a core material category for Buy Canadian sourcing.Catenary support structures (masts, gantries, cantilevers) can be fabricated by Canadian producers to drawings. Engineering and design content typically comes from European suppliers via the SNCF connection in Cadence. Steel fabrication: Canadian; specification and design: international.
    Domestic capacity:Partial

    Rolling stock (trainsets)

    ALTO’s claim / framingTechnical / market reality
    Rolling stock is not the focus of the November 2025 steel outreach. Trainsets are a separate procurement line.HSR trainsets at 300+ km/h are produced by a small number of international manufacturers: Alstom, Siemens Mobility, Hitachi Rail, Talgo, CAF. Canadian-based final assembly is possible (Bombardier’s legacy facilities under Alstom ownership) but the trainset steel content is overwhelmingly imported. The SNCF connection inside Cadence strongly suggests an Alstom procurement.
    Domestic capacity:Not met
    The Supplier Landscape

    Who could actually fill the rail-steel gap

    Three categories of suppliers are positioned to fill the rail-steel gap: domestic producers willing to retool; the Pueblo, Colorado mill, which is the largest rail supplier in North America and is installing a new HSR-grade rolling mill; and established European and Asian HSR rail steel suppliers. Each carries a distinct set of trade-offs.

    Domestic candidates — Algoma Steel and ArcelorMittal Dofasco

    Both have received substantial federal funding for equipment upgrades — totalling more than $800 million across the two firms. Industry Minister Mélanie Joly has signalled that further support for retooling is on the table. When approached by The Logic in September 2025, ArcelorMittal’s response was non-committal: the company indicated it would assess long-term market potential before committing to a pivot. Algoma did not respond. The CSPA’s framing — 300,000 tonnes is “both a lot of steel and not very much” against Canada’s 12-million-tonne annual production — captures the business problem. Retooling for HSR rail steel makes commercial sense only if the order is repeating, not one-off.

    The Pueblo mill — Rocky Mountain Steel / Orion Steel

    The Pueblo facility was, until 2025, EVRAZ North America’s flagship rail mill — the largest rail supplier in North America. Following UK sanctions on the Russian parent in 2022, the North American assets were put up for sale. In June 2025, Connecticut-based private equity firm Atlas Holdings completed a $500 million acquisition, forming Orion Steel with Pueblo operating as Rocky Mountain Steel. Crucially: in May 2025, the mill selected Danieli to supply a new premium rail rolling mill at Pueblo with capacity of 670,000 short tons, producing 100-metre rails up to 88 kg per metre with hardness to 425 BHN. Specifications designed for heavy-haul and high-speed railways. Danieli

    The complication is political. Canada–US trade relations are subject to 50% American tariffs on Canadian steel as of mid-2025, with no signs of resolution. The most logical North American supplier of HSR rail steel sits in the country with which Canada is in an active trade dispute. Sourcing 300,000 tonnes of HSR rail steel from Pueblo while Canadian steel exports face 50% tariffs would be politically untenable on its face.

    International suppliers — Europe and Japan

    The established global suppliers of HSR rail steel are concentrated in Europe and Japan: voestalpine (Austria), ArcelorMittal Europe, Tata Steel Europe, Nippon Steel and JFE Steel (Japan). These are the actual rail suppliers to most operating European and Asian HSR systems. The SNCF Voyageurs presence inside the Cadence consortium creates a natural commercial pathway to European supply. International sourcing carries shipping costs, 12–24 month lead times, and unfavourable political optics — but is the default fallback if domestic retooling is not financed in time and US sourcing remains politically blocked.

    Implications

    Closing the framing-versus-reality gap

    The implications divide naturally between what ALTO and the federal government could address now, and what depends on procurement decisions that lie one or two years ahead.

    Could be committed to now

    Category-level Canadian-content target A commitment in the 80–90% range for non-rail steel — structural beams, rebar, catenary masts, ancillary — would be both achievable and verifiable. The current “to the greatest extent possible” language is not a target. (ALTO)
    Honest framing on rails ALTO and the Minister of Transport could acknowledge publicly that high-carbon-density rail steel is not currently produced in Canada and that procurement of this category will depend on either retooling Canadian producers or sourcing internationally. Imbleau has already made the underlying admission on the record. (ALTO / Transport)
    A retooling financing decision — either way Industry Canada could announce, with a timeline, the federal package that would enable Algoma or ArcelorMittal Dofasco to produce HSR rail steel by 2029–2030. If no such package is contemplated, that should be said publicly. The current ambiguity — Joly’s “may help” phrasing — leaves the procurement question unresolved. (Industry Canada)

    Depends on future decisions

    The actual sourcing outcome for rails This will be made through Cadence’s procurement process, beginning with “pre-procurement activities” in 2026 and RFPs in 2027–2028. The decision will reflect the available market at that time — including whether US tariffs persist, whether Canadian retooling has been financed, and what European and Japanese suppliers offer.
    The political durability of the framing If the procurement outcome is substantially Canadian (with rails from a retooled domestic producer), the framing will be vindicated. If the outcome is substantially international (voestalpine or Nippon Steel), the framing will be retrospectively understood as aspirational language that masked an early procurement decision. The political consequence will depend on whether the public has been prepared in advance for the outcome.
    Where things stand · May 10, 2026

    Summary ledger

    In summary, against the substantive content of ALTO’s Buy Canadian commitments and the technical reality of HSR steel procurement:

    Met
    Structural steel — bridges, viaducts, stations. Canadian capacity exists at the required scale. The Buy Canadian framing is operationally credible for this category.
    Met
    Reinforcing steel (rebar). Domestic and traditional import channels meet demand without project-specific intervention.
    Met
    Ancillary steel (fencing, signal masts, depot framing). Canadian capacity is adequate; commodity category.
    Partial
    Catenary masts and electrification structures. Steel fabrication can be Canadian; engineering and design content typically from European suppliers via the SNCF connection in Cadence.
    Not met
    Running rails — high-carbon-density HSR profile. Not currently produced in Canada (Imbleau, on record, September 2025). Sourcing options: retooled domestic producer (requires federal financing not yet announced), Pueblo / Orion Steel (politically constrained by US tariffs), or international suppliers (voestalpine, Nippon Steel, etc.).
    Not met
    Turnouts, switches, special trackwork. HSR-grade specialty trackwork is a niche international market; Canadian capacity does not exist at scale.
    Not met
    Rolling stock steel content. Trainsets at 300+ km/h are produced internationally; Canadian-based final assembly is possible but steel content is overwhelmingly imported.
    Not met
    Published category-level Canadian-content targets. Not committed. Current framing is aspirational language (“to the greatest extent possible”) rather than measurable targets.
    Not met
    Public acknowledgement of the domestic rail-steel gap. Imbleau has acknowledged this on the record; ministerial communications and ALTO’s procurement framing have not been adjusted to reflect it.
    Not met
    Federal retooling-financing announcement. Industry Canada has signalled possible support without commitment. Lead time required for a Canadian rail steel mill to be operational by 2029–2030 is shrinking.

    ALTO’s chief executive has confirmed publicly that high-carbon-density rail steel is not currently produced in Canada. The Buy Canadian commitments that have been published, taken category by category, are operationally credible for steel outside the rails themselves and are not currently credible for the rails. The gap is closeable — through federal financing of domestic retooling, through honest public framing, or through both — but it is not closed today, and the time available to close it before procurement decisions are locked in is finite.

    Download Full Brief
    Three Hundred Thousand Tonnes (PDF)
    Comprehensive category-by-category analysis for federal decision-makers, industry stakeholders, and constituents tracking ALTO procurement
    Download PDF
    Sources

    Primary documents and reporting

    1.
    Reevely, David. “Alto wants piles of Canadian steel to keep high-speed rail on track.” The Logic, September 30, 2025. Carries Imbleau’s “none is produced today in Canada” admission and Catherine Cobden’s (CSPA) commentary. thelogic.co
    2.
    ALTO. “Alto and Cadence to begin outreach to steel industry in support of Toronto–Quebec City high-speed rail project.” Press release, November 18, 2025. altotrain.ca
    3.
    ALTO. “Procurement.” Page on altotrain.ca, updated February 17, 2026. altotrain.ca/procurement
    4.
    Atlas Holdings. “Atlas Holdings to Acquire EVRAZ North America.” Press release, June 27, 2025. atlasholdingsllc.com
    5.
    Heat Treat Today. “Atlas Acquires Steelmaker EVRAZ North America; Forms Orion Steel.” August 6, 2025. Confirms Orion Steel formation and Pueblo’s operational continuation as the largest rail supplier in North America.
    6.
    Danieli. “EVRAZ North America selects Danieli to supply new premium rail mill.” Press release, May 27, 2025. Confirms HSR-grade specifications: 670,000 short ton capacity, 100-metre rails up to 88 kg/m, hardness up to 425 BHN. danieli.com
    7.
    Railway Age. “Alto HSR Project Advances (UPDATED 12/15).” December 15, 2025. Coverage of November 18 steel-industry outreach announcement.
    8.
    ReNew Canada. “High-speed rail project to support Canadian steel industry.” Coverage of November 18, 2025 announcement. renewcanada.net
    9.
    Daily Commercial News (Construct Connect). “Alto wants steel industry’s feedback on ‘readiness’ for massive high-speed rail project.” November 20, 2025.