newy.com.au – The Hunter is set to return to the centre of NSW train building under a $12 billion state government plan to establish a new state owned manufacturing facility and a long term pipeline of passenger train production.
To begin rebuilding the Hunter rail manufacturing workforce, two production lines of the $447 million Tangara Life Extension program have been established at the Cardiff rail facility. That work is expected to employ 100 qualified workers and 20 apprentices.
The Minns government says the investment will then support a 15-year rolling stock pipeline and anchor more than 30 years of train manufacturing in the region, starting with the next Tangara fleet and continuing with replacement trains for the Millennium and OSCAR fleets in the 2040s, followed by the Waratah fleet in the 2050s.
Two potential sites have been identified after an extensive search: a former coal mine at Teralba and the Broadmeadow Locomotive Depot, near where the original Tangara fleet was manufactured between 1986 and 1998. The final location will be subject to due diligence and stakeholder consultation, with the Teralba option also requiring further engagement with Glencore and partners over possible site acquisition.
The government says the purpose-built facility would be state-owned but operated by a private manufacturer, with the aim of giving industry the certainty to invest locally, train apprentices and strengthen NSW supply chains rather than buying trains project by project from overseas.
The site is expected to employ up to 780 workers during construction and support 550 ongoing jobs in the facility and its supply chains.
Member for Newcastle Tim Crakanthorp said the project built on the city’s manufacturing legacy.
“Newcastle is a proud manufacturing city, we built the Tangaras, we assembled the Waratahs, and now we are building the NSW trains of the future,” Mr Crakanthorp said.
Premier Chris Minns said the announcement was about more than a single train order.
“The Hunter knows how to build trains. Our job is to make sure it has the opportunity to build them again,” Mr Minns said.
“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.
Newcastle Lord Mayor Gavin Morris said the decision would reinvigorate the Hunter’s train-building legacy.
“The announcement of a $12 billion investment over 15 years is great news for Newcastle and the Hunter, delivering an economic and employment windfall that will be felt for decades to come,” Cr Morris said.
Transport Minister John Graham said the facility and local content commitment would help rebuild the state’s rail manufacturing capacity.
“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,” Mr Graham said.
“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.”
The investment is also linked to the government’s election commitments to set a minimum 50 per cent local content target for rolling stock contracts and begin procurement of the new Tangara fleet by the end of its first term.
Minister for the Hunter Yasmin Catley said rail manufacturing had been part of the region’s history and would again be part of its future, while Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the plan would use government purchasing power to back local workers, manufacturers and supply chains.
The government has also pointed to its broader manufacturing agenda, including a 10-year, $6.5 billion investment in electric buses and electric depot infrastructure announced in last month’s NSW budget.
The next steps will include finalising the site selection and opening a formal Expression of Interest process for contracts to build the facility and manufacture the train fleets. Transport officials have conducted supplier workshops to prepare businesses to bid for the work.
Australian Manufacturing Workers Union NSW state secretary Brad Pidgeon said the announcement marked an important moment in the union’s campaign to return train manufacturing jobs to NSW.
“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,” Mr Pidgeon said.
