en.Wedoany.com Reported - The New South Wales Government has announced a $12 billion investment to rebuild train manufacturing in the Hunter region, planning to construct a new state-owned train production facility operated by a private manufacturer and implement a 15-year rolling stock production program to support long-term local manufacturing, employment, and supply chain development.
This investment aims to replace the previous project-by-project procurement approach with a long-term production plan, providing greater certainty for industry investment and workforce development. After extensive site selection, the government has identified two candidate locations: a former coal mine in Teralba and the Broadmeadow Locomotive Depot, which was used to build the original Tangara fleet between 1986 and 1998. The final site will be determined through due diligence and stakeholder consultation, with the Teralba option requiring further engagement with Glencore and project partners regarding potential acquisition.
The new facility is expected to support train manufacturing in the Hunter region for over 30 years. After the production of the new Tangara fleet is completed, the production plan will extend into the 2040s to replace the Millennium and OSCAR fleets, and into the 2050s to replace the Waratah fleet. Premier Chris Minns stated that the initiative aims to create long-term certainty for manufacturers, rather than relying on individual procurement projects. He noted that the government is building a long-term production pipeline, giving the industry confidence to begin investing, hiring apprentices, and developing local supply chains in New South Wales.
The project is expected to create up to 780 construction jobs and 550 long-term positions within the manufacturing facility and its supply chain. Transport Minister John Graham said that this investment, combined with a commitment to at least 50% local content in rolling stock contracts, will provide the certainty manufacturers need. Minister for Domestic Manufacturing and Government Procurement Courtney Houssos added that the government is leveraging its purchasing power to support local manufacturers, local workers, and local supply chains, noting that for every job in the factory, three and a half jobs are generated in the supply chain.
This announcement is part of the Minns government's election commitment, including beginning procurement of the new Tangara fleet before the end of its first term. The government has already established two production lines in Cardiff for the $447 million Tangara life extension project, which is expected to employ 100 qualified workers and 20 apprentices. Brad Pidgeon, New South Wales Secretary of the Australian Manufacturing Workers' Union, welcomed the announcement, stating it represents a significant moment in the campaign to bring train manufacturing jobs back to New South Wales, with the proposed facility and long-term production plan set to provide decades of stable, high-skilled manufacturing employment for local workers.
Next steps include completing site selection and commencing a formal expression of interest process for contracts to build the facility and manufacture future train fleets. The government stated that supplier workshops have already been held to help businesses prepare to participate in the procurement process.
