Cando Rail & Terminals Establishes ONexpress Toronto Operations Base

Why It Matters

Cando’s Toronto foothold expands its Canadian rail‑service portfolio and aligns it with Metrolinx’s ongoing infrastructure upgrades, reshaping the competitive landscape after ONexpress’s exit.

Key Takeaways

• Cando established a Toronto base at former CP Obico yard
• Two GP38‑3 locomotives equipped with DPU deployed
• 14 new flatcars slated for maintenance‑of‑way service
• Hiring engineers, conductors, assistant superintendents in Toronto
• ONexpress Operations contract cancelled; Alstom extended GO train contract

Pulse Analysis

Cando Rail & Terminals’ decision to locate an operations hub in Toronto reflects a strategic push into Canada’s high‑growth rail‑maintenance sector. By repurposing the former Canadian Pacific Obico yard, Cando gains immediate access to critical rail corridors while showcasing its latest equipment—GP38‑3 locomotives with distributed power units and a fleet of 14 purpose‑built flatcars. The assets are tailored for maintenance‑of‑way tasks, a niche that will become increasingly valuable as Metrolinx accelerates its electrification and capacity‑expansion programs.

The timing of Cando’s expansion is notable given the recent cancellation of the ONexpress Operations contract, which had overseen GO Transit and Union‑Pearson Express train services. Metrolinx’s decision to terminate the agreement in January 2025, coupled with Alstom’s five‑year contract extension in March 2026, creates a service vacuum for ancillary rail work. Cando’s new base positions the firm to capture contracts for track upkeep, equipment servicing, and other support functions that are essential to keeping the expanded fleet operational, thereby strengthening its foothold in the province’s rail ecosystem.

Beyond equipment, Cando’s recruitment drive signals confidence in sustained demand for skilled rail personnel. By hiring engineers, conductors, and assistant superintendents locally, the company not only bolsters its operational capacity but also contributes to the talent pipeline needed for large‑scale infrastructure projects. As Ontario continues to invest in rail modernization, Cando’s Toronto presence could become a pivotal partner for Metrolinx and other regional operators seeking reliable, domestically based maintenance solutions.