How Alto Will Reshape Canada’s Economy

Building high-speed rail will generate thousands of jobs and create many new opportunities for Canadians. Once operational, riders will enjoy the immediate benefits of shorter travel times and increased reliability. But what about the network’s longer-term effects? What is the forecasted outcome of a project of this magnitude? Before breaking ground, before finalizing the research and pre-construction phases, we wanted to understand the lasting impact Alto could have on Canada.

Enter Aviseo Conseil, an independent consulting firm based in Québec that specializes in strategy and economics, to build accurate impact studies and market analyses. Alto engaged them to produce an independent report assessing the structuring economic impacts of implementing a high-speed rail service in the Toronto–Québec City corridor.

Aviseo’s “Overview of the Structural Economic Impacts of Alto” Report

At Alto, our expertise is in designing and building high-speed rail. Aviseo’s expertise determines the long-term economic effects of large projects. They do so by using a computable general equilibrium (CGE) model that simulates the Canadian economy. CGE models are a trusted tool widely used by governments and international organizations to estimate and predict how big changes, like high-speed rail, would affect labour, businesses, and growth. 

Aviseo grounded its analysis in a review of over 100 international studies on high-speed rail systems, drawing on evidence from countries where similar networks already operate.

The Aviseo model assessed the impacts of our rail project, particularly in terms of productivity, labour supply, and tourism. 

Alto is projected to support a significant uplift in Canada’s GDP

The study finds that high-speed rail between Québec City and Toronto could bring real long-term benefits to the Canadian economy in three major ways: 

• Businesses would gain productivity because cities and markets are better connected.
• There would be an increase in the labour supply, thanks to shorter commute times and new commuting options.
• Alto would attract more tourists and increase tourism spending, as it becomes easier for visitors to travel between cities. 

These benefits would further fuel the economy and keep capital moving. For example, business productivity gains would flow into increased household disposable income, business income and government revenues, which contribute to Canada’s overall economic health. In fact, the analysis concludes that Alto will permanently uplift Canada’s GDP by 1.1%.  

Proximity matters – but everyone can still benefit

High-speed rail benefits would depend on how connected you are to the network. Users will experience the advantages of shorter travel times, new job opportunities, and improved access to education, healthcare, and services. However, even people who don’t use the train will also benefit, as increased economic activity spreads through supply chains, creating jobs and boosting incomes across regions.

Alto has the potential to create broad and lasting economic benefits, and with thoughtful planning and supportive policies, those benefits can be widely distributed across communities. That’s why Alto’s engagement with communities along the corridor is already underway.

Ultimately, the findings point to something bigger than faster travel. High-speed rail has the potential to reshape how people live, work and connect across the corridor, supporting long-term economic growth. 

Read the full report: An Overview of the Structural Economic Impacts of Alto

Consult more studies on the high-speed rail project.