Budget 2026: What it means for transportation and logistics

Budget 2026, tabled on November 5, 2026, proposes funding for rail, ferries and border technology and amendments to the law governing Transportation Safety Board (“Board”) investigations, and describes how Bill C-39, the Building Canada Strong Act (“Bill C-39”) would speed up federal approvals for ports and other transportation projects. For carriers and port operators, the most direct effects would come from the permanent write-off for new fleet and equipment purchases and the one-year project approval target.

Bill C-39, introduced in September 2026, would formally designate strategic trade corridors, create a Transportation Projects Office to coordinate federal approvals for priority transportation projects, modernise port governance and transportation rules, and target federal decisions for designated projects within one year after a complete application is submitted. Bill C-39 would also establish Corridors of National Interest, including transportation corridors, through regional impact assessments.

Transportation projects

To support the development of approved projects, Budget 2026 proposes to establish a major projects management entity to ensure those projects have access to the expertise and resources required to move quickly.

Budget 2026 proposes to provide $187.4 million over five years, beginning in 2026-2027, and $24.2 million in future years to launch and operate the entity. Budget 2026 also highlights several port and trade corridor initiatives that have been referred to the Major Projects Office and are at different stages of development.

Ports and trade corridors

Roberts Bank Terminal 2, listed as a project of national interest on October 30, 2026, would increase the Port of Vancouver’s container-handling capacity by approximately 50%. In Québec, the Montreal Port Authority announced the start of in-water construction for the Contrecœur Container Terminal Project in August 2026. Construction of this project will support up to 8,000 direct and indirect jobs. Grays Bay Road and Port, the Port of Churchill Plus and the Port of Vancouver Gateway Strategy have also been referred to the Major Projects Office.

Passenger rail, ferries and bridges

VIA Rail would receive $1.2 billion over three years, starting in 2027-2028, for operations and maintenance, in addition to more than $6.6 billion announced in September 2026 for new cars and locomotives. Budget 2026 proposes to renew the Ferry Services Contribution Program until 2032, with $1.3 billion over eight years; and the Remote Passenger Rail Program, with $35.1 million in 2027-2028 to support the delivery of passenger rail services in Manitoba, Québec, and Newfoundland and Labrador. The LaSalle Causeway Bridge Replacement and Renewal Project will deliver a new movable bridge over the main marine channel and renew the East and West Bridges, using $261.8 million of existing funding. The federal government also proposes legislation to accelerate Alto High-Speed Rail construction by streamlining expropriation and enabling early preconstruction work.

Border and transportation safety

Budget 2026 proposes $192.5 million over four years, starting in 2027-2028, and $42.5 million ongoing, for the Canada Border Services Agency to modernise and stabilise its border technology infrastructure. The federal government also proposes to amend the Canadian Transportation Accident Investigation and Safety Board Act to clarify the Board’s legal obligations while conducting its investigations and to update its reporting requirements. Rail, marine, air and pipeline operators should review the proposed amendments once the bill is tabled.

Tax measures

The Productivity Mega Deduction would let businesses of all sizes immediately deduct the full cost of new capital investments, across a broader range of assets and on a permanent basis. Examples include aircraft, vessels, heavy freight trucks, railway track, locomotives and railway cars. Once legislation is tabled, the Canada Revenue Agency will decide whether specific assets qualify based on the particulars of each case, so carriers planning fleet purchases should confirm eligibility with their tax advisers.

The suspension of the federal fuel excise tax on gasoline, diesel fuel and aviation fuels has been extended until the end of January 2027. Rates will then be restored to 50% of pre-suspension levels until the end of March 2027, before returning to standard rates on April 1, 2027.

Airports

Budget 2026 proposes legislation and funding for long-term operating concessions at Canada’s four largest airports, with the operator to be selected by early 2029. Jody Aldcorn reviews these measures in a separate article: Budget 2026: Airport concessions taxi towards take off.

What to watch

Next, watch Bill C-39 in Parliament and the promised bills on the Productivity Mega Deduction, the Transportation Safety Board, airport concessions and Alto High-Speed Rail. We are available to discuss how these measures would affect your operations.