Two key rail logistics projects have been awarded $8 million in funding through the West Australian government’s Local Manufacturing Investment Fund (LMIF).
The funding towards the projects will go towards establishing an iron ore railcar manufacturing production line in the Pilbara region, and a centre of excellence in Karratha.
Almost $7 million of the funding has been awarded to establish a facility in Karratha to manufacture iron ore rail cars for Rio Tinto, with the other $1 million awarded to help boost the design, manufacture, decarbonisation and employment training opportunities at the recently opened CORE Innovation Hub Rail Collaboration Centre (RCC).
Rio Tinto is one of the world’s biggest exporters of iron ore, and recently shipped its four billionth ton of the metal to China through its agreement with China Baowu Steel Group.
Rio Tinto has exported enough iron ore to China over the past 50 years to construct roughly 45,000 Sydney Harbour Bridges.
Pilbara MLA Kevin Michel says the funding will help continue to progress the region’s economy.
“As the Member for Pilbara, I’m excited to see that the Pilbara region is advancing with key rail infrastructure projects,” Michel says.
“The new Rail Collaboration Centre by CORE Innovation Hub, supported by nearly $1 million from our government’s LMIF, will drive cutting-edge research and local manufacturing for iron ore railcars.
“Additionally, Gemco Rail’s upcoming new facility in Karratha, funded with nearly $7 million from the LMIF, will produce and refurbish railcars, creating jobs and boosting our local economy.
“It’s great to see that the LMIF has invested over $13.5 million in supporting local WA businesses and continues to underscore our commitment to economic growth and job creation in the Pilbara.”
A minister assisting the State and Industry Development, Jobs and Trade Minister Stephen Dawson says the funding will help a crucial element of Australia’s trade and logistics sector running at top capacity.
“Our resources sector relies heavily on railcars, and it makes perfect sense to invest in developing a local industry that will manufacture, test and conduct research on delivering a state-of-the-art iron ore railcars,” the minister says.
“The opening of this new Rail Collaboration Centre in the Pilbara is another major step towards building an exciting new industry specialising in the manufacture of world class iron ore railcars.”
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