Canada Budget 2025 Review
Transportation & Logistics Advisory Brief – Opportunities for Long-Haul Trucking & Logistics Firms.
Executive Summary
The 2025 Federal Budget positions trucking and logistics as central to Canada’s national growth strategy. With over $115 billion in planned infrastructure, defence, and clean-energy spending, the sector faces a decade of expansion. Federal programs like Build Communities Strong and Trade Diversification Corridors will transform freight networks, boost industrial logistics, and create high-value procurement opportunities for Canadian-owned carriers.
Budget 2025: Investment Breakdown
Budget 2025 commits more than $115 billion toward national infrastructure and logistics priorities. The largest shares go to defence and transportation networks, followed by clean-fuel incentives and regional corridor development. Approximately half of all funding supports highway and municipal upgrades, while over half of the remainder targets defence supply chains and national freight corridors. Smaller but important allocations strengthen Arctic access and clean transport initiatives.
Top opportunity areas include:
- Heavy-haul and infrastructure freight logistics
- Defence and secure supply chain transport
- Clean-fuel fleet conversions
Cross-border intermodal growth
Ontario, Alberta, and Atlantic trade routes are expected to receive the majority of these infrastructure investments.
Key Infrastructure and Program Spending
The Build Communities Strong Fund allocates $51 billion for highways, bridges, and municipal roads, driving high demand for material hauling, heavy equipment transport, and project logistics. The Trade Diversification Corridors Fund provides $5 billion to expand ports and border facilities, creating sustained opportunities in drayage, intermodal, and cross-border freight.
The Arctic Infrastructure Fund introduces $1 billion for all-season roads and energy corridors across northern regions, opening specialized long-term contracts for remote resupply and construction logistics. The Defence Industrial Strategy sets aside $61 billion to develop domestic military supply chains requiring certified and secure heavy-haul carriers. Finally, the Clean Fuel Transition Program, worth over $2 billion, promotes fleet electrification and zero-emission vehicle (ZEV) adoption through grants and tax relief.
Procurement and Contracting Opportunities
Under the new Buy Canadian Policy, federal procurement favors carriers with domestic ownership, low-emission fleets, and proven safety and compliance records. The Small Business Procurement Program (worth nearly $80 million) simplifies access for logistics firms through streamlined CanadaBuys registration, mentorship, and training on emissions reporting and compliance.
Assentt Insight: Trucking firms should keep financial statements, insurance, and compliance documents up to date to qualify under the simplified SME stream.
Fleet Modernization & Tax Incentives
Budget 2025 extends accelerated capital cost allowance (CCA) measures, allowing immediate 100% expensing for trucks, trailers, and ZEVs purchased before 2030. Companies can also deduct the full cost of hydrogen or electric fueling infrastructure and access BDC’s Clean-Tech financing.
Eligible investments include hybrid or electric Class 7–8 tractors, fuel-efficient diesel retrofits, idle-reduction systems, and telematics. Combining the Productivity Super-Deduction with ZEV write-offs offers a strong first-year tax shield for expanding fleets.
Assentt Insight: Trucking firms should keep financial statements, insurance, and compliance documents up to date to qualify under the simplified SME stream.
Contract Streams for Trucking Firms
Trucking companies can compete or subcontract in multiple areas:
- Infrastructure Freight: Material hauling and equipment transport for public works.
- Trade Corridor Logistics: Drayage, warehousing, and container transfers near ports and airports.
- Defence Supply Chain: Secure military and industrial freight transport.
- Clean Energy Logistics: Movement of renewable, nuclear, and battery components.
- Public Procurement Delivery: Government departmental and agency logistics contracts.
How to Engage & Qualify
To access these programs, firms should register on CanadaBuys, identify key NAICS codes (484110 – General Freight, 484230 – Heavy Haul, 488510 – Freight Arrangement), and certify for Buy Canadian and Sustainable Procurement compliance. Trucking companies should also pursue BDC or EDC financing to expand fleet capacity and monitor tender opportunities through PSPC, Transport Canada, and Defence Construction Canada.
Assentt Insight
Trucking firms should keep financial statements, insurance, and compliance documents up to date to qualify under the simplified SME stream.
Outlook
The 2025 Budget redefines trucking as a strategic national asset. Firms that maintain efficient capital structures, invest in clean fleet technologies, and position themselves for government procurement will lead Canada’s next wave of logistics growth.
As infrastructure, defence, and clean-energy spending accelerate, long-haul carriers will form the backbone of supply chain modernization — and advisors who guide them will shape the sector’s future transformation.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
