Rio Tinto’s first Pilbara-made iron ore rail car has rolled off the production line in Karratha as part of a $150 million partnership with Gemco Rail.
The collaboration will see Gemco build 100 rail cars in Western Australia (WA), in an initiative that will support local manufacturing.
This first Karratha-made rail car follows the completion of 40 WA-made iron ore rail cars under the partnership at Gemco’s Perth facility earlier this year, with the remaining cars to be constructed at a new purpose-built facility in Karratha.
Rio Tinto said its partnership with Gemco is a demonstration of its “commitment to local manufacturing” and supporting the communities in which it operates. In 2024, the company spent $10.3 billion with WA suppliers.
Rio Tinto iron ore chief executive Matthew Holcz said the company is “thrilled” to be working with its partners to bring rail car manufacturing to the Pilbara for the first time.
“Our WA operations haul more than 300 million tonnes of iron ore across almost 2000 kilometres of rail tracks every year,” he said.
“Local manufacturing strengthens not only our business, but it also empowers local communities, supports regional jobs and creates new economic opportunities in the Pilbara.”
Gemco’s parent company, Engenco, said it is pleased to deliver on its commitment with the expansion into the Pilbara.
“Establishing a manufacturing presence in Karratha strengthens our ability to work closely with customers, enhances supply chain resilience, and supports regional industry while creating employment opportunities,” Engenco chief executive officer (CEO) Dean Draper said.
“The Gemco team remains focused on supporting our customers and building capability within our local workforce to deliver high-quality, sustainable rail solutions.”
Also partnered with Rio in this endeavour, CRRC Qiqihar Railway Rolling Stock (QRRS) representative Vincent Zhu said his company is delighted to witness the local ore car manufacturing event in Karratha.
“As a long-term and valued supplier of Rio Tinto, QRRS is honoured and proud to support Rio Tinto on the localisation project of ore cars to contribute to local society and communities,” he said.
“We will commit to promoting the partnership with Rio Tinto and supply excellent products and services continuously.”
In light of this news, Western Australian Premier Roger Cook said the government’s priority is “diversifying” the state’s “nation-leading” economy by supporting local production initiatives.
“Our government brought railcar manufacturing back to Perth, and we’re proud to see businesses like Rio Tinto and Gemco Rail get behind our State’s industry, build more things here and create WA jobs,” he said.
“I’d like to congratulate Rio Tinto and Gemco Rail on today’s milestone, which has brought Made in WA-railcars to the heart of our country’s economic engine room.”