Train manufacturing returning to the Hunter NSW with $12bn investment

The Minns Labor Government is investing $12 billion to establish a long-term pipeline of passenger train manufacturing in the Hunter, setting the region to become one of the largest train manufacturing hubs in Australia.

A new state-owned train manufacturing facility is being proposed to be built in the Hunter, operated by a private entity, as well as a rolling stock pipeline over 15 years.

This record investment will provide the long-term certainty needed to invest locally, rather than buying trains from overseas when required. It will also allow apprentices to be trained while strengthening local supply chains and rebuilding train manufacturing in New South Wales.

“The Hunter knows how to build trains. Our job is to make sure it has the opportunity to build them again.

“But we’re not announcing a one-off order of trains. We’re building a long-term pipeline of work that gives industry the confidence to start investing in NSW, employing apprentices in NSW and grow local supply chains.

“When the Government spends billions of dollars on new trains, I want as much of that investment as possible staying here in New South Wales, creating jobs, supporting local businesses and strengthening regional communities,” Premier Cris Minns said.

“This is a proud day for the Hunter. Rail manufacturing is an important chapter in our history, and now under our government, it will be an important part of our future too.

“The people of the Hunter know how to build trains, and we look forward to bringing on the next generation of workers to deliver the future fleet.

“This is more than just good local procurement policy – it’s an assurance that the Minns Labor Government is committed to strengthening jobs and opportunities for NSW families,” Minister for the Hunter Yasmin Catley said.

Two potential sites for the new facility have been identified after an extensive search – a former coal mine at Teralba and the Broadmeadow Locomotive Depot near the original Tangara fleet was manufactured between 1986 and 1998.

In the case of the Teralba site, it is also subject to further engagement with Glencore and partners regarding potential site acquisition.

The final site will be selected after due diligence and stakeholder consultation.

The new facility is anticipated to secure more than three decades of train manufacturing in the Hunter region. The pipeline of works will start with the construction of the new Tangara fleet and continue with the replacement of the Millennium and OSCAR fleets in the 2040s and the Waratah fleet in the 2050s.

“This is a generational investment from the Minns Labor Government, that will support local workers and businesses for decades to come.

“We’re bringing train manufacturing back home with this $12 billion investment, that will create jobs, boost local industry and see more trains built right here.

“The Hunter has a proud history of train building, and with today’s announcement, it is set to reclaim its place as one of Australia’s leading manufacturing hubs,” Minister for Regional Transport Jenny Aitchison said.

This massive investment is part of a long-term plan to rebuild local train manufacturing after 12 years of offshoring transport manufacturing jobs by the former Liberal-National Government.

The Minns Labor Government is delivering on its commitment to set a target of a minimum 50 per cent local content for rolling stock contracts, and to commence procurement of the new Tangara fleet by the end of its first term in office.

Investing in stable, well-paid manufacturing jobs will help address decades of industrial change in the Hunter after the closure of steelworks, changes in the mining industry as well as the loss of train and bus manufacturing.

“The Liberals sent billions of dollars and thousands of jobs offshore, this is a big step forward in rebuilding our train manufacturing industry so that more wages and jobs go to the people of NSW.

“The investment in this facility combined with the commitment to local content will give the manufacturing industry the certainty they need to invest in NSW operations.

“Along with the jobs, this investment will make sure our future rail fleets are fit for purpose, unlike the former government’s procurement strategy where overseas trains didn’t fit our tunnels or tracks,” Minister for Transport John Graham said.

“This marks an important moment in our campaign to bring train manufacturing jobs back to NSW, after the former government sent thousands of jobs offshore.

“A dedicated state-owned train building facility in the Hunter, and this steady long-term fleet pipeline, will translate to decades of secure highly skilled manufacturing jobs for local workers,” State Secretary of the Australian Manufacturing Workers Union NSW Brad Pidgeon said.

The proposed development is expected to generate up to 780 jobs during its construction and a further 550 ongoing jobs in the facility and across the supply chain.

To start re-establishing the train manufacturing workforce in the Hunter, the State Government initiated two production lines of the $447 million Tangara Life Extension program at the Cardiff rail facility, which will employ 100 qualified workers and 20 apprentices.

In the recent State Budget, the Minns Labor Government is also investing $6.5 billion to deliver a 10-year pipeline of new electric buses and electric depot infrastructure.

Next steps include finalising site selection and a formal Expressions of Interest process for the contracts to construct the facility and manufacture the train fleets.

Transport for NSW has conducted supplier workshops to ensure businesses are ready to submit their bids as part of the procurement process.

“This investment shows just how bright the future is for the Hunter. We are rebuilding an industry that once powered this region and giving it a secure pipeline for decades to come.

“We are using the Government’s purchasing power to back local manufacturers, local workers and local supply chains. That means more jobs staying here in NSW, and more opportunities for businesses in the Hunter to grow.

“We know that manufacturing jobs don’t stand alone. For every job in the factory, a further three and a half are created in the supply chain, and we want those jobs in NSW.

“The Hunter has the skills, the history and now the pipeline to once again be a powerhouse of train building in Australia,” Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said.

Source: NSW Government – Media Releases; Transport for NSW; ABC News; News.com.au