Hitachi Rail, Invest Ontario to fund C$100 million to upgrade CBTC signaling technology

Nov. 26, 2024
With the funding, Hitachi Rail aims to develop a new generation of its CBTC technology, SelTracTM, which will integrate AI, 5G communications, edge and cloud computing.

Hitachi Rail is partnering with Invest Ontario as part of a more than C$100 million (US$70.8 million) investment to upgrade its Communication-Based Train Control (CBTC) signaling technology. With the funding, Hitachi Rail aims to develop a new generation of its CBTC technology, SelTracTM (G9), which will integrate artificial intelligence (AI), 5G communications, edge and cloud computing. Hitachi Rail says the next generation system will offer transit operators worldwide lower costs, minimized carbon footprint and enhanced passenger experience. 

The investment includes the expansion of Hitachi Rail’s workforce in Toronto, Ontario, creating 100 new jobs and retaining 1,000 highly skilled positions in its York Mills office, including R&D and engineering roles. 

“The over C$100 million (US$70.8 million) investment in the next generation of our world-leading SelTracTM technology is hugely exciting and we are grateful to the government of Ontario and Invest Ontario for their support,” said Ziad Rizk, managing director, urban rail signaling, Hitachi Rail. “By integrating AI, 5G, edge and cloud computing, our system will allow urban rail transportation operators around the globe to improve passenger journeys and operate more efficiently. This Ontario-invented technology is a Canadian success story that is creating jobs and boosting economic growth.” 

CBTC is a modern urban signaling system that uses wireless communication between trains and infrastructure to operate urban transit and subway systems more efficiently and safely than conventional signaling. SelTracTM, invented in Ontario, is currently operating in more than 100 lines in 40 major cities around the world, including the O-Train in Ottawa.  

“As one of the largest and most sought-after tech hubs in North America, Ontario is driving the development of next-generation technologies that will strengthen economic growth across key sectors, including automation and transportation,” said Minister of Economic Development, Job Creation and Trade of Ontario Vic Fedeli. “Through Invest Ontario, we are proud to support Hitachi Rail’s expansion in Toronto and thank them for choosing our province as the ideal place for their continued growth and success.” 

The company’s York Mills office in Toronto serves as its engineering center of excellence, equipped with labs, testing areas and simulation environments. The expansion adds to Hitachi Rail’s growing presence in Canada that includes around 1,200 employees across the country, who are delivering and maintaining major transit projects in Toronto, Vancouver, B.C., Montreal, Quebec and Ottawa. Toronto is home to the company’s international urban transit signaling technology business, as well as large program teams based downtown and in Mississauga, Ontario, that are delivering major new transit infrastructure, like the Ontario Line and Hurontario. 

“Under the leadership of Premier Ford, our government is investing C$70 billion (US$49.6 billion) in the largest transit expansion in North America, connecting millions more Ontarians to reliable and affordable public transit. Today's announcement means Hitachi Rail will be helping even more workers gain the critical expertise needed to deliver Ontario's generational projects,” said Ontario’s Minister of Transportation Prabmeet Sarkaria. 

“Hitachi Rail’s investment is a testament to Ontario’s strengths in future technologies that are transforming industries from manufacturing to transportation. We are excited to support the company in advancing a made-in-Ontario technology that keeps cities around the world on the move,” said Invest Ontario Interim CEO Jennifer Block. 

In support of the investment, the provenience of Ontario is providing C$4.5 million (US$3.2 million) in funding through the Invest Ontario Fund.