Rio Tinto using Locally Built Iron Ore Rail Cars in Western Australia
Rio Tinto is marking a significant leap forward in Australia’s industrial self-reliance, with construction beginning on its first locally produced iron ore rail cars in Western Australia.
The mining giant is putting its weight behind domestic manufacturing, investing approximately A$150 million in a move designed to bolster local industry and employment.
Strengthening Local Manufacturing and Job Creation
Partnering with Gemco Rail and CRRC Qiqihar Rolling Stock Co. Ltd, Rio Tinto’s initiative is enthusiastically supported by the Western Australian government. This strategic collaboration aims to create a robust local supply chain that promises substantial job creation and boosts the state’s manufacturing capabilities.
Western Australian Premier Roger Cook underscored the significance of this development: “Our vision for Western Australia’s future is clear: we want to continue working closely with the resources industry to diversify our nation-leading economy and make more things here.” Highlighting the achievement, Cook added: “These railcars are an excellent example of that vision already in action. I want to congratulate Rio Tinto, Gemco Rail, and CRRC Qiqihar Rolling Stock for building locally and supporting Western Australian jobs and industry.”
New Manufacturing Facilities Drive Regional Development
Initially, 40 rail cars will roll out from Gemco’s established Forrestfield facility in Perth. Later this year, a further 60 rail cars will be produced at a brand-new facility in Karratha. The Karratha plant is expected to establish a sustainable manufacturing base and bearing refurbishment industry in the Pilbara, directly supporting up to 25 skilled jobs in the region.
Simon Trott, Rio Tinto Iron Ore Chief Executive, explained the broader benefits of the initiative, stating: “We want to support local business and create new economic opportunities in the communities where we operate. By partnering with Gemco Rail and CRRC Qiqihar Rolling Stock, we are establishing new manufacturing capability in the Pilbara that will create a reliable and sustainable supply chain to support our operations and the regional economy for years to come.”
Advanced Engineering and Robotic Technologies
Gemco Rail brings cutting-edge technology to the project, leveraging robotic welding and advanced engineering solutions. Each rail car is engineered to carry up to 118 tonnes of iron ore, significantly boosting the efficiency of transport from Rio Tinto’s 17 mines in the Pilbara to its coastal ports.
Moreover, the establishment of the Karratha workshop significantly reduces logistical costs, as it eliminates the need to transport bearings and rail cars to and from Perth. This will streamline maintenance cycles, reduce operational downtime, and reinforce regional self-sufficiency.
Dean Draper, Managing Director and CEO of Engenco Limited, Gemco Rail’s parent company, emphasised the long-term vision behind the investment: “We are proud to partner with Rio Tinto to re-establish iron ore rail car manufacturing in Western Australia. The construction of Rio Tinto’s first locally built rail car marks a significant milestone in developing a sustainable local supply chain. Gemco Rail’s investment in both our Forrestfield facility, and our expansion into Karratha reflects our long-term commitment to our customers and to strengthening regional industries. Led by our highly skilled workforce, we are delivering high-quality rail solutions which will support Rio Tinto’s Pilbara operations.”
International Collaboration Fuels Sustainability
CRRC Qiqihar Rolling Stock Co. Ltd, a global leader in rail manufacturing, is also playing a crucial role. Managing Director Wang Liwen highlighted their commitment, saying: “We shall be committed to strongly support Rio Tinto’s globalisation strategy, low-carbon strategy, and localisation projects by virtue of our excellent products and services and actively promote the realisation of social value.”
By aligning with international expertise and advanced technologies, Rio Tinto aims not only to enhance local manufacturing but also to push forward its sustainability objectives, reflecting a broader industry trend towards greener operations and greater corporate social responsibility.
Significant Economic Impact
Rio Tinto operates around 13,500 iron ore rail cars in its extensive Pilbara network, routinely replacing approximately ten units annually. The first Western Australian-built rail cars from Gemco are expected to enter operation by early 2025, marking a significant milestone for the company’s local procurement strategy.
This initiative is part of Rio Tinto’s broader commitment to boosting the Western Australian economy. Since 2018, the company has more than doubled its annual spending with local suppliers, hitting a record A$10.3 billion in 2024. These efforts underline a clear strategic intent to stimulate regional economic growth and resilience through increased local investment.
Investment and Regional Opportunities
With ongoing expansions and new facilities, Rio Tinto’s project promises significant long-term benefits:
- Creation of a robust manufacturing hub in Karratha.
- Reduction of supply chain risks through local sourcing.
- Sustainable regional employment opportunities.
- Enhanced operational efficiencies for Rio Tinto’s iron ore network.
This forward-looking investment positions Western Australia as a key player in advanced industrial manufacturing, leveraging both local talent and global expertise to drive economic growth.
Western Australia’s Industrial Future
Rio Tinto’s rail car initiative signals a promising shift towards self-sufficient manufacturing in Western Australia. By harnessing local capabilities and global partnerships, the company not only enhances its operational efficiency but also significantly contributes to the region’s economic prosperity and sustainable industrial development.
This ground-breaking venture exemplifies how visionary partnerships can shape the future of regional industry and employment.
