PERTH—Mining giant Rio Tinto has rolled out its first locally manufactured iron ore rail car, part of a sweeping effort to re-anchor critical supply chains in Western Australia and reduce reliance on international imports.
The company’s A$150 million ($93 million) commitment will see 100 iron ore rail cars produced domestically, with manufacturing split between Gemco Rail’s Forrestfield facility in Perth and a forthcoming plant in Karratha, a regional hub near Rio’s Pilbara operations.
The announcement marks a significant shift in how the miner sources equipment for its sprawling rail network—one of the largest privately owned freight rail systems in the world, moving ore from 17 Pilbara mines to export ports.
“We want to support local business and create new economic opportunities in the communities where we operate,” said Simon Trott, Chief Executive of Rio Tinto Iron Ore. “By partnering with Gemco Rail and CRRC Qiqihar Rolling Stock, we are creating a reliable and sustainable supply chain to support our operations and the regional economy for years to come.”
New Iron Ore Rail Car Program to Revive Regional Manufacturing
The first of the new iron ore rail cars will begin hauling ore in early 2025, according to Rio Tinto. Following production of 40 units in Perth, Gemco will shift operations to Karratha to complete the remaining 60 rail cars. The new site will also serve as a hub for refurbishing rail car bearings, reducing the need to transport components across long distances from Perth.
“The construction of Rio Tinto’s first locally built rail car marks a significant milestone in developing a sustainable local supply chain,” said Dean Draper, Managing Director and CEO of Engenco Ltd., the parent company of Gemco Rail.
Western Australia Pushes Domestic Manufacturing
The initiative has strong backing from the Western Australian government, which has pushed for greater industrial self-sufficiency and regional job creation.
“These rail cars are an excellent example of our vision in action,” said WA Premier Roger Cook. “We want to continue working closely with the resources industry to diversify our nation-leading economy and make more things here.”
The state’s ambition is not only economic but strategic. By re-shoring key industrial capabilities, WA aims to bolster its resilience to international supply chain disruptions—a lesson reinforced by COVID-era bottlenecks and rising geopolitical risk.
Advanced Manufacturing Meets Heavy Haul
Gemco Rail is employing robotic welding and advanced engineering to produce high-strength rail cars, each capable of carrying up to 118 tonnes of iron ore. The technology upgrade comes as Rio Tinto maintains a fleet of 13,500 iron ore rail cars, replacing about 10 units annually.
The joint venture also includes China’s CRRC Qiqihar Rolling Stock Co. Ltd, which brings decades of rolling stock expertise to the project.
“We are committed to supporting Rio Tinto’s globalisation strategy, low-carbon goals, and localisation projects with excellent products and services,” said Wang Liwen, Managing Director of CRRC Qiqihar Rolling Stock.
A New Model for Local Supply Chains
Rio Tinto’s pivot toward local content comes as miners across Australia reassess procurement strategies amid inflationary pressures and energy transition mandates. While the upfront costs of domestic manufacturing can be higher, companies are increasingly weighing those against long-term supply security, job creation, and reputational gains.
“Gemco Rail’s investment in Forrestfield and Karratha reflects our long-term commitment to strengthening regional industries,” Draper said.
Conclusion: Iron Ore Rail Cars Signal Economic Shift
As the first iron ore rail car rolls off the local assembly line, Rio Tinto is doing more than just replacing old rolling stock. It is signaling a return to industrial capability in a state long defined by resource extraction, not fabrication.
With strategic government support and strong industry buy-in, Western Australia is positioning itself not only as a source of raw materials—but also as a manufacturer of the infrastructure needed to move them.
