Industry Associations
The Next Generation Tram project will support jobs in manufacturing, the supply chain and the construction of a new depot and maintenance facility.
Australian manufacturing focus creates new opportunity The confirmation of the largest investment in Australian-made trams highlights the significant potential to grow the rail manufacturing sector as record investment in new infrastructure continues. The Victorian Government’s awarding of the $1.85 billion contract as part of the Next Generation Tram project will see 100 new and accessible trams built to support the nation’s most iconic tram network. It will support 1900 jobs in manufacturing, the supply chain and the construction of a new depot and maintenance facility, further building on the significant manufacturing capability that exists within Victoria. The investment in new rolling stock is not the only one in the state, with the Victorian Government also committing $986 million to build 25 new X’Trapolis 2.0 trains as part of its 2021-22 State budget. The trend towards local manufacturing goes well beyond Victoria, with new manufacturing projects underway or planned across the country. The Queensland Government confirmed its $7.1 billion Queensland Train Manufacturing Program last year, which will see 65 new passenger trains built in Maryborough.
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A new rail facility will also be developed on the Gold Coast, while locations for stabling yards are being considered. A preferred applicant for the program is expected to be confirmed later this year, with the project set to support the growth of the rail network as the Cross River Rail project is completed and Queensland prepares for the 2032 Olympics. Across the country, the first railcar to be built at the new Bellevue Railcar Manufacturing and Assembly Facility in WA started undergoing testing in March, representing a return of rail manufacturing to the state. The facility will deliver 246 new C-Series railcars as part of the METRONET project, and six new Australind railcars over the next decade. In NSW, the State Government has confirmed Parramatta Light Rail Stage 2 will include a local manufacturing requirement as part of its business case. The range of commitments to develop rolling stock here in Australia highlights a significant
opportunity for industry and government to build on the nation’s existing capability and create long term opportunities for the people who work within the rail manufacturing and supply sector. AUSTRALIA’S MANUFACTURING CAPABILITY Australia’s rail manufacturing capability is already significant. Our rail manufacturing and supply industry generates $2.4 billion a year and employs more than 4000 people across the country. Rail manufacturing businesses are located across the country, with higher representation in Victorian and New South Wales. Importantly, it is a strong supporter of small and medium enterprises, with about a third of the rail supply chain consisting of businesses with 20 employees or less. The sector has also been a key driver for regional jobs, particularly in locations such as Newcastle, Dandenong, Maryborough and Lake
