AUSTRALIAN mining giant Rio Tinto is partnering with Perth-based company Gemco Rail to build and maintain iron ore rail cars in the Pilbara region.
In a statement, Rio Tinto said it would invest about $150 million to purchase 100 locally built rail cars over six years, in addition to the continued investment in bearing refurbishment over 10 years.
The first 40 cars will be built at Gemco’s existing facility in Perth while the company establishes an additional facility in Karratha.
Once the new facility is operational, Gemco Rail is expected to build an average of 10 cars per year.
These are to replace 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.
The partnership was 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.
According to Rio Tinto, 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 carbon dioxide each year.
Rio Tinto iron ore chief executive Simon Trott said the company aims to create enduring partnerships that generate positive impacts in the regions it operates in.
“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,” he said.
“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.”
The Australasian Railway Association welcomed the partnership.
ARA CEO Caroline Wilkie said the decision was a major step forward in supporting a sustainable local rail industry.
“This commitment sets a new standard in support for local manufacturing and local content and will lay the foundations for more partnerships to increase Australian capability in the future,” Ms Wilkie said.
“One of the ARA’s key missions is to increase the sustainability of the rail sector and this deal is also a perfect example of how we can reduce emissions by localising key manufacturing and maintenance in the rail supply chain.”
