The New South Wales Government has announced it is investing $12 billion to deliver a new train manufacturing facility in the Hunter region.
The factory will be owned by the state but operated by a private manufacturer, and the government said there is already a pipeline of manufacturing projects stretching 30 years.
After the construction of the new Tangara fleet, the replacement of the Millennium and OSCAR fleets is scheduled for the 2040s, followed by the Waratah fleet in the 2050s.
“Rather than buying trains project by project from overseas, this will provide the long-term certainty needed for industry to invest locally, train apprentices, strengthen local supply chains and rebuild train manufacturing in NSW,” a government statement said.
Two potential sites for the facility have been identified near Newcastle, with one being the Broadmeadow Locomotive Depot near where the original Tangara train fleet was manufactured between 1986 and 1998. The other is a former coal mine at Teralba.
The government said the selection of the site will be subject to due diligence and stakeholder consultation. In the case of Teralba, further engagement would be needed with Glencore and partners over potential acquisition of the site.
The Minns Labor Government said this investment helps deliver on its election promises to set a target of a minimum 50 per cent local content for rolling stock contracts, and to begin procurement of the new Tangara fleet by the end of its first term in office.
The site is expected to create up to 780 jobs during the construction phase, and 550 ongoing roles in the facility and supply chains.
“This landmark investment in stable, well-paid manufacturing jobs will address decades of industrial change in the Hunter following the closure of steelworks, changes in the mining industry and the loss of train and bus manufacturing,” the government said.
As part of building up the Hunter train manufacturing workforce, two production lines for the $447 million Tangara Life Extension program have been set up at the Cardiff rail facility.
The next steps will include finalising the selection of the site and putting out a formal Expression of Interest for the contracts to build the facility and manufacture the train fleets.
Premier Chris Minns said: “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.”
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