Locally manufactured iron ore rail cars to support WA jobs & industry

Perth-based Gemco Rail is partnering with Rio Tinto to deliver 100 new iron ore rail cars, bringing good news to the local iron ore rail car manufacturing industry in Western Australia’s Pilbara region. 

Through this partnership, Gemco Rail will be expanding its existing operations to establish the region’s first ever iron ore rail car manufacturing and maintenance facility. The project is anticipated to create new jobs that will increase spend on local and Indigenous businesses and support local economic growth. 

“We aim to create enduring partnerships that generate positive impacts in the regions where we operate and are proud to be leading the way in bringing iron ore car manufacturing and maintenance to the Pilbara. 

“We’re taken our original scope to build iron ore cars in Western Australia and enhanced it to see the construction of ore cars in the same region as our operations. This will bring a new industry to the Pilbara, creating jobs and providing more opportunities for local and Indigenous businesses,” Rio Tinto Iron Ore Chief Executive Simon Trott said. 

Rito Tinto will be investing approximately $150 million over a six-year period in the manufacture of 100 new iron ore rail cars. 

Gemco Rail will be building the first 40 rail cars at its existing facility in Forrestfield while an additional facility in Karratha is being constructed. 

Once the new facility is completed, Gemco Rail will begin manufacturing an average of 10 iron ore rail cars annually to replace retiring iron ore rail cars from Rio Tinto’s existing fleet. 

The Karratha facility will also be supporting the supply of new and reconditioned rail car bearings from the Pilbara in an industry-first. 

“In securing this opportunity with Rio Tinto, Gemco is proud to utilise its experience and capabilities to re-establish the manufacture of iron ore rail cars in Western Australia. 

“Gemco Rail’s investment in the Pilbara reflects our long-term commitment to customers and communities in Western Australia. We acknowledge the conscious efforts of Rio Tinto to increase their spend with WA based suppliers, our supply partner QRRS, and the support of the Western Australian Government in facilitating this investment in Karratha,” Engenco Limited (parent company of Gemco Rail) Chief Executive Officer Dean Draper said. 

The first locally manufactured rail car is due to be delivered in 2024 and the new facility in Karratha is expected to be built by the end of next year, subject to the availability of a suitable property. 

The new Karratha facility will help reduce the need to transport iron ore rail cars and bearings between the Pilbara and Perth. This, in turn, will remove an estimated 150 truck journeys from local roads as well as 300 tonnes of CO2 a year. 

The partnership was developed by Rio Tinto, Gemco Rail and Qiqihar Railway Rolling Stock (QRRS) and supported by the State Government. 

“As a long-term and valued supplier of Rio Tinto, QRRS is delighted and proud to support Rio Tinto on this important project to contribute to local society and communities. 

“We will commit to promote partnership with Rio Tinto and supply excellent products and services continuously,” QRRS representative Zhu Yifeng said. 

The Western Australian Government is showing its support for this project through a $6.9 million investment to assist Gemco Rail’s manufacturing capabilities. The company will utilise this fund to upgrade its Forrestfield facility and to build the new facility in Karratha. 

The funding is committed through the $15 million Local Manufacturing Investment Fund (LMIF) that is part of an election commitment to support local companies to boost their competitiveness and provide an effective service to the manufacturing sector. 

“My Government is absolutely committed to rebuilding our local manufacturing capability, and we’re getting on with the job of delivering on our commitment. 

“Not only will the agreement create jobs and diversify the economy, it will help revitalise and future-proof local manufacturing in WA, including in the Pilbara. 

“It will reduce WA’s reliance on overseas suppliers and helps our State become more self-sufficient. 

“It’s a win for jobs, a win for the economy and another step towards a stronger manufacturing sector in WA,” Premier Roger Cook said. 

Source: Government of Western Australia – Media Statements; Rio Tinto; Yahoo! Finance (1, 2); AuManufacturing