Rio Tinto has announced plans to partner with a rail company to bring local rail car manufacturing for freight services to the Pilbara
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Rio Tinto is committed to bringing local freight rail manufacturing back to WA
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Mining corporation Rio Tinto says it will partner with Gemco Rail to bring local iron ore rail car manufacturing and bearing maintenance to the Pilbara region in an industry-first for the freight rail sector.
This partnership will enable Gemco Rail to expand its existing operations to establish the first ever rail ore car manufacturing and maintenance facility in the Pilbara, creating new jobs, increasing spend with local and Indigenous businesses and supporting local economic growth.
Rio Tinto expects to invest approximately $150 million to purchase 100 locally built ore rail cars over six years as well as continued investment in bearing refurbishment over 10 years to support the company’s Pilbara operations.
The first 40 ore cars will be built at Gemco Rail’s existing facility in Forrestfield, while the company establishes an additional facility in Karratha.
Once this new facility is operational, Gemco Rail is expected to build an average of 10 ore cars per year, replacing ore cars as they are retired from Rio Tinto’s existing fleet. The new Karratha facility will also support the supply of new and reconditioned ore car bearings from the Pilbara in an industry-first.
This partnership has been developed by Rio Tinto, Gemco Rail and Qiqihar Railway Rolling Stock (QRRS) and supported by the Western Australian state government.
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The first WA-built rail car is expected to be delivered in 2024 and the Karratha-based facility is expected to be established by the end of 2024, subject to the availability of a suitable property.
The new Karratha facility will reduce the need to transport iron ore cars and bearings between the Pilbara and Perth, removing an estimated 150 truck journeys from WA roads and 300 tonnes of CO2 each year.
Rio Tinto Iron Ore Chief Executive Simon Trott says the corporation aim to create enduring partnerships that generate positive impacts in the regions it operates in.
“We are proud to be leading the way in bringing iron ore car manufacturing and maintenance to the Pilbara,” Trott says.
“We’ve taken our original scope to build iron ore cars in Western Australia and enhanced it to see the construction of ore cars in the same region as our operations. This will bring a new industry to the Pilbara, creating jobs and providing more opportunities for local and Indigenous businesses.”
Western Australian Premier Roger Cook says the state government is committed to rebuilding its local manufacturing capability.
“Not only will the agreement create jobs and diversify the economy, but it will also help revitalise and future-proof local manufacturing in WA, including in the Pilbara,” Cook says.
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