Iron ore giant BHP has today committed to the construction of 140 iron ore cars over the next four years in Perth, further bolstering the McGowan Government’s commitment to reviving local engineering and steel fabrication.
This initiative to assemble, weld and commission the ore cars at UGL’s Bassendean facility will help develop Western Australia’s capability for establishing an iron ore car industry and reflects the McGowan Government’s commitment to boosting local manufacturing through the Iron Ore Railcar Wagons Manufacturing and Maintenance Action Group.
It follows an independent report commissioned by the McGowan Government which found
a strong case for establishing an iron ore railcar component part manufacturing industry in WA.
The report, delivered by registered Aboriginal business Keogh Bay, also identified further opportunities related to the manufacture and service of rolling stock for the transportation of grains and other minerals.
The findings of the study are the first step in securing an ongoing pipeline of work for the longer-term vision of the manufacture of iron ore railcar wagons, which will deliver jobs and economic benefit for the State into the future.
A $15 million Local Manufacturing Investment Fund has already been established by the WA Government to help existing businesses build iron ore wagons locally as part of the WA Jobs Plan.
This follows Rio Tinto’s announcement in October 2021 to use local suppliers to build ore railcars for its Pilbara operations.
As stated by Premier Mark McGowan:
“My Government is committed to boosting local manufacturing, local content and local jobs.
“The key findings of the full feasibility study show that we have the capability and expertise right here in WA to manufacture iron ore railcar wagons and components.
“Making wagons locally is not only a job creator, it’s about supporting our WA businesses and ensures we continue to keep a long-term pipeline of work. It will also reduce our reliance on overseas suppliers and lower risks associated with global supply chains.”
As stated by State Development, Jobs and Trade Minister Roger Cook:
“The McGowan Government is working closely with the mining industry and suppliers to create local manufacturing capability for iron ore railcar wagons at sites across the State.
“This new industry will create local jobs and establish manufacturing capability that diversifies our economy.
“We have moved a step closer in our long-term plan to bring an important element of the resources supply chain onto WA soil for the benefit of mining companies and successive generations of Western Australians.”
