Rio Tinto to bring rail car manufacturing to the Pilbara
June 12 2023 - 9:15PM
Business Wire
Rio Tinto will partner with Gemco Rail to bring local iron ore
rail car manufacturing and bearing maintenance to the Pilbara
region in an industry-first.
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 A$150 million to
purchase 100 locally built ore rail cars over six years as well as
continued investment in bearing refurbishment over ten 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.
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 said: “We aim to
create enduring partnerships that generate positive impacts in the
regions where we operate and are proud to be leading the way in
bringing iron ore car manufacturing and maintenance to the
Pilbara.
“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 said: “My Government is
absolutely committed to rebuilding our local manufacturing
capability, and we’re getting on with the job of delivering on our
commitment.
“Not only will the agreement create jobs and diversify the
economy, it will help revitalise and future-proof local
manufacturing in WA, including in the Pilbara.”
Engenco Limited, the parent company of Gemco Rail, Chief
Executive Officer Dean Draper said: “In securing this opportunity
with Rio Tinto, Gemco is proud to utilise its experience and
capabilities to re-establish the manufacture of iron ore rail cars
in Western Australia.
“Gemco Rail’s investment in the Pilbara reflects our long-term
commitment to customers and communities in Western Australia. We
acknowledge the conscious efforts of Rio Tinto to increase their
spend with WA based suppliers, our supply partner QRRS, and the
support of the Western Australian government in facilitating this
investment in Karratha.”
QRRS representative Zhu Yifeng said: “As a long-term and valued
supplier of Rio Tinto, QRRS is delighted and proud to support Rio
Tinto on this important project to contribute to local society and
communities.
“We will commit to promote partnership with Rio Tinto and supply
excellent products and services continuously.”
Note to the editor:
Rio Tinto operates about 14,000 ore cars across its Pilbara rail
network. On average the company orders 10 new iron ore cars each
year. Each ore car can hold an estimated 118 tonnes of iron
ore.
Since 2018, Rio Tinto has increased its annual spend with WA
suppliers by 73 per cent, with A$8.6 billion in 2022.
In 2022, Rio Tinto awarded two contracts worth a combined A$61
million for the supply of new conveyor pulleys and pulley rebuilds
that will see a purpose-built facility established in Karratha.
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