The NSW Government says it will invest $12 billion to rebuild train manufacturing in the Hunter through a new state-owned production facility and a 15-year rolling stock pipeline aimed at supporting long-term local manufacturing, jobs and supply chains.
According to the NSW Government, the investment includes a new train manufacturing facility to be operated by a private manufacturer, replacing the previous project-by-project procurement approach with a long-term pipeline intended to provide greater certainty for industry investment and workforce development.
The government said two potential sites have been identified following an extensive search: a former coal mine at Teralba and the Broadmeadow Locomotive Depot, where the original Tangara fleet was built between 1986 and 1998. Final site selection will be subject to due diligence and stakeholder consultation, while the Teralba option will also require further engagement with Glencore and project partners regarding potential acquisition.
The facility is expected to support more than 30 years of train manufacturing in the Hunter. Following production of the new Tangara fleet, the pipeline is planned to continue with replacement of the Millennium and OSCAR fleets in the 2040s and the Waratah fleet in the 2050s.
Premier Chris Minns said the initiative was designed to create long-term certainty for manufacturers rather than relying on individual procurement projects.
“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,” Minns said.
He added: “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.”
The government said the project is expected to create up to 780 construction jobs and 550 ongoing positions across the manufacturing facility and its supply chains.
Transport Minister John Graham said the investment, together with a commitment to a minimum of 50 per cent local content in rolling stock contracts, would provide certainty for manufacturers.
“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,” Graham said.
The announcement forms part of the Minns Government’s election commitments, which also include beginning procurement of the new Tangara fleet before the end of its first term. The government said it has already established two production lines for the $447 million Tangara Life Extension program at Cardiff, expected to employ 100 qualified workers and 20 apprentices.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the investment would support manufacturing employment beyond the factory itself.
“We are using the Government’s purchasing power to back local manufacturers, local workers and local supply chains,” Houssos said.
“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.”
Brad Pidgeon, State Secretary of the Australian Manufacturing Workers Union NSW, welcomed the announcement, saying it represented “an important moment in our campaign to bring train manufacturing jobs back to NSW” and that the proposed facility and long-term production pipeline would provide “decades of secure highly skilled manufacturing jobs for local workers.”
The NSW Government said the 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.
It added that supplier workshops have already been held to help businesses prepare to participate in the procurement process.
