Rail Manufacturing In Mid West Gets Major Funding Boost

  • Government awards $4.1 million to Mid West businesses for railcar manufacturing and maintenance
  • $2.3 million for GHS Solutions to upgrade rail wagon servicing workshop
  • $1.8 million for DIAB Engineering to expand Geraldton rail repair facility
  • Funding awarded through the Government’s Local Manufacturing Investment Fund

The Mid West is fast becoming another hub for regional railcar maintenance and manufacturing with the Cook Government investing more than $4 million into local businesses.

Minister Assisting the State and Industry Development, Jobs and Trade Minister Stephen Dawson said GHS Solutions and DIAB Engineering had been awarded funding through the Government’s Local Manufacturing Investment Fund (LMIF).

The $2.3 million awarded to GHS Solutions will assist the business to modernise its rail wagon servicing workshop which will attract further work from Mid West and Pilbara rail operators.

The upgrade includes a grit blasting room, painting and blasting equipment, modern welding equipment and a CNC lathe.

DIAB Engineering will use $1.8 million awarded via the LMIF to expand its Geraldton-based rail maintenance workshop.

The expansion will increase the current size of the workshop by 1,200 square metres and help position itself for winning work in the future.

The Government’s successful LMIF aims to support local companies to grow their competitiveness and provide an efficient and effective service to this important market sector.

Since being established in 2021, the LMIF has awarded more than $13.5 million to metropolitan and regionally based projects, securing an ongoing stream of work for local fabricators in the manufacture and maintenance of iron ore rail wagons.

This included funding such projects as a new Rail Collaboration Centre in Karratha, Newman and Perth to undertake world-class testing, research and development of new rolling stock, infrastructure, technology, and ideas.

By providing a boost to the local rail wagon repair capability, the State Government continues to follow the recently released Western Australia: Advancing the Future of Manufacturing prospectus, which was designed to target investment based on high technology, supported by sustained demand.

As stated by Minister Assisting the State and Industry Development, Jobs and Trade Minister Stephen Dawson:

“The Cook Government is focused on building and expanding manufacturing businesses to create more opportunities for skilled labour in Western Australia.

“Our resources industry has a heavy reliance on railcars and their servicing and manufacture and we’re supporting and fast-tracking all opportunities to build a successful railcar manufacturing industry around this need.

“The Mid West is another great location to build a manufacturing and maintenance hub for railcars with its close proximity to major regional mining operations and rail operators.

“The benefits range from cutting repair timelines and cost savings to emission reductions by not requiring transportation to the metropolitan area.

“Our Government’s successful LMIF continues to provide a boost to local companies and ensures our State remains competitive in an ever-changing market, putting WA at the forefront of new technologies and innovations.”

As stated by Geraldton MLA Lara Dalton:

“This is great news for the Mid West with the Cook Government looking to create another hub for railcar manufacturing and servicing.

“We have both the capacity and capability, with the Mid West being the perfect location to support this exciting manufacturing industry which creates a wide range of benefits for both rail operators and the local community.

“This includes timeliness of repairs, emission reduction benefits, skilled local jobs, Indigenous employment and training and diversification of regional economies – just to name a few.

“These are all examples of how the LMIF can stimulate and support regional businesses and help reduce supply chain risk by enabling multiple sites State-wide to support industry.”

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