SYDNEY, July 3 — New South Wales Premier Chris Minns is expected to pledge $12 billion to revive train manufacturing in the state, earmarking two sites near Newcastle for a new factory. The announcement is slated for a speech at the NSW Labor Conference at Sydney’s Town Hall this morning. The premier is set to commit to establishing the manufacturing site at either Teralba or Broadmeadow, both located in the state’s Hunter region.
According to officials, the $12 billion would be spent over 15 years, though it remains unclear where the funding will come from. No money has been put aside for the project in this year’s budget.
“For generations, highly skilled Australian workers made our Tangaras, our red rattlers, our V Set, our S Set,” Mr Minns is anticipated to say in a speech to the party’s rank-and-file. “All until 2012, when the last train rolled off the line at Broadmeadow, after being outsourced to China, Spain and South Korea.” The account indicates a deliberate effort to restore a manufacturing capability that was lost more than a decade ago.
The Hunter region has a long industrial history tied to rail and heavy engineering, and the premier’s pledge appears aimed at re-establishing that base. The government had previously committed to start procuring the replacement of the aging Tangara fleet by early 2027, with a 50 per cent local content target.
State and international reports have noted that the Tangara trains, first introduced in the late 1980s, are nearing the end of their operational life. The government estimates the plan will create 780 jobs in the manufacturing stage, and 550 ongoing roles after that. Officials said the factory would be built at either Teralba or Broadmeadow, both of which have existing rail infrastructure and industrial land.
Broadmeadow was the site where the last train rolled off the line in 2012, before production was outsourced overseas. The choice of that location carries symbolic weight, according to observers familiar with the region’s industrial history. Teralba, a smaller suburb west of Newcastle, also has rail connections and available industrial land.
The government has not indicated which site is preferred, and no timeline for the decision has been released. The $12 billion figure is substantial by any measure, but the lack of allocated funding in this year’s budget raises questions about how the project will be financed.
Officials have not detailed whether the money will come from future budgets, borrowing, or public-private partnerships. What to watch next: The premier’s speech this morning will provide further detail on the timeline and site selection process. The government’s commitment to a 50 per cent local content target for the Tangara replacement procurement, due to begin by early 2027, will also be closely watched by industry and unions alike.
Whether the funding materialises in future budgets will determine if this pledge becomes a reality or remains an aspiration.
