Mr Trott said the COVID-19 pandemic had helped the company rethink how it sourced components for its iron ore operations as costs of disruptions increased.
“I would say the cost you put on disruptions of supply chains has probably increased in the last few years because of COVID … So, the value that we see and having it locally has probably increased,” he said.
“You’ll see us progressively continue to invest locally so that we’ve got that capacity here in Western Australia.”
Rio Tinto orders 10 new rail cars each year to supplement the same number retiring from its fleet of 14,000. Each train transporting ore from the company’s mines to port for export has 240 cars and is about 2.5 kilometres long.
The WA government will contribute close to $7 million towards the deal from a Local Manufacturing Investment Fund aimed at spurring investment in the state.
Premier Roger Cook said Tuesday’s announcement was one step towards “righting a historical wrong” after the state’s manufacturing capacity was eroded over recent decades.
“We’re going to build stuff again,” Mr Cook said.
He raised the potential of scaling up rail car manufacturing in WA, given the size of the state and its commercial railway networks.
“If you look across all our major miners, but also in terms of our grain handling capabilities, we’ve got thousands upon thousands of rail cars – the opportunity to start making them in Western Australia once again is a great opportunity,” he said.
Tuesday also marked Mr Cook’s first parliamentary sitting day as premier, less than a week after he was sworn in. He has flagged diversifying WA’s economy as a major focus of his time in the top job.
“Not only will the agreement create jobs and diversify the economy, it will help revitalise and future-proof local manufacturing in WA, including the Pilbara,” he said.
The Gemco Rail Pilbara maintenance facility will be built in Karratha and employ around 20 people, the company’s chief executive Dean Draper said.