Ontario awards Aecon consortium $1.4B subway contract

Key Takeaways:

• Ontario has awarded a contract to North End Connectors to design and build the twin tunnels for the Yonge North Subway Extension, marking a major milestone in the province’s $70-billion transit expansion plan.
• The extension will connect Toronto’s Line 1 subway to Vaughan, Markham, and Richmond Hill, supporting over 90,000 daily trips and reducing travel times by up to 22 minutes.
• Officials say the project will create thousands of jobs, stimulate economic growth, and help shield Ontario’s economy from global uncertainty and trade pressures.

The Whole Story:

A $1.4-billion contract has been awarded to North End Connectors, a consortium led by Aecon Group Inc., to design and build the tunnels for the Yonge North Subway Extension — a key part of Ontario’s $70-billion transit expansion in the Greater Toronto Area.

The project reached financial close with Infrastructure Ontario and Metrolinx this week. Aecon, which holds a 33.3 per cent interest in the consortium, announced that its $477-million share of the contract will be added to its Construction segment backlog in the third quarter of 2025. The company had previously disclosed the deal in its second-quarter financial results released July 31.

North End Connectors — comprised of Aecon, Spain-based FCC Construcción and Italian firm Ghella — will be responsible for constructing approximately 6.3 kilometres of tunnel, launch and extraction shafts, headwalls for future emergency exits and stations, and supplying and installing tunnel boring machines and liners. The extension will ultimately run 8 kilometres from the current terminus at Finch Station to Richmond Hill, passing through communities in Vaughan and Markham.

“This transformative subway extension will improve access to transit for local residents, reduce travel times, support economic growth, and help to meet the needs of growing populations along the alignment,” said Jean-Louis Servranckx, Aecon’s president and CEO.

Premier Doug Ford called the Yonge North Subway Extension a cornerstone of the province’s broader transit plan, which includes four priority projects in the GTA.

“As we get shovels in the ground on this critical project, we’re helping keep thousands of workers on the job and we’re building the infrastructure that will boost Ontario’s economy and help thousands of York Region commuters get where they need to go faster and more conveniently,” Ford said in a statement.

The province estimates the extension will support over 90,000 daily trips and reduce some commutes by up to 22 minutes. Once complete, it will bring 26,000 more people within a 10-minute walk of transit.

Transportation Minister Prabmeet Sarkaria said the investment will help protect Ontario’s economy in the face of global uncertainty and trade pressures, pointing to the impact of ongoing U.S. tariffs on the province.

“We are building the next generation of subway service that will connect Ontarians to thousands of good-paying jobs and housing for years to come,” said Sarkaria.

Design work is now underway, with major tunnelling to begin afterward. A separate procurement will cover the construction of stations, tracks and systems. Utility relocations and other preparatory work have also begun. Upgrades at Finch Station, intended to support the future extension, were recently completed.

“This project is part of one of the largest investments the federal government has made in public transit in the Greater Toronto Area,” said Willowdale MP Ali Ehsassi. “Once complete, it will be a vital link to greater opportunities, supporting a more affordable and connected York Region.”

York Region Chair and CEO Eric Jolliffe said continued investment from all levels of government is essential to keep pace with population growth and support economic development.