Rio Tinto Rolls Out First Pilbara-Made Iron Ore Rail Car, Strengthening Local Manufacturing and Regional Jobs
Rio Tinto has reached a major milestone in its commitment to Western Australian industry and local communities with the completion of its first Pilbara-made iron ore rail car at Karratha. This achievement is part of a A$150 million partnership with Australian rail supplier Gemco Rail, established to manufacture 100 iron ore rail cars in Western Australia and support domestic manufacturing capabilities.
The first rail car rolling off the Karratha production line marks the next stage in a program that began earlier this year with the completion of 40 rail cars at Gemco Rail’s Perth facility. The remaining units will be assembled in a new purpose-built Karratha facility, signaling a significant expansion of the region’s industrial footprint.
Local Manufacturing Takes Center Stage
To support operations in Karratha, machinery and equipment for rail car assembly and bearing refurbishment have been relocated from Perth. This new facility is designed to build rail cars to the highest standards while fostering local employment, with up to 25 new jobs created in the Karratha region. These roles will span skilled assembly, engineering, and operational support, further strengthening the industrial capabilities of Western Australia’s Pilbara region.
The Karratha-manufactured rail cars are set to enter service immediately, transporting iron ore from Rio Tinto’s 18 Pilbara mines to its key port facilities in Dampier and Cape Lambert. Each rail car can carry up to 118 tonnes of iron ore, helping to enhance the efficiency and capacity of Rio Tinto’s freight operations across the Pilbara.
A Strategic Partnership Supporting Local Communities
The Gemco Rail deal reflects Rio Tinto’s broader strategy of investing in local manufacturing and supply chains. The partnership, formed in 2023 by Rio Tinto, Gemco Rail, and CRRC Qiqihar Rolling Stock Co. Ltd, also received support from the Western Australian Government, underlining the importance of collaboration between industry and government in fostering regional economic growth.
Western Australian Premier Roger Cook praised the milestone, emphasizing the government’s commitment to diversifying the state’s economy:
Our government’s priority is diversifying Western Australia’s nation-leading economy by supporting initiatives that help our State become a place that makes more things here.
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. 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.
The partnership underscores Rio Tinto’s ongoing dedication to local supplier engagement, job creation, and regional economic development. In 2024, Rio Tinto invested a record A$10.3 billion with Western Australian suppliers, reflecting the company’s commitment to strengthening local businesses and community opportunities.
Rio Tinto Highlights Economic and Operational Impact
Matthew Holcz, Chief Executive of Rio Tinto Iron Ore, highlighted the strategic importance of local rail car manufacturing for the company’s operations and regional development:
We’re thrilled to be working with our partners to bring iron ore rail car manufacturing to the Pilbara for the first time.
Our WA operations haul more than 300 million tonnes of iron ore across almost 2,000km of rail tracks every year. Local manufacturing strengthens not only our business, it also empowers local communities, supports regional jobs, and creates new economic opportunities in the Pilbara.
By localizing rail car production, Rio Tinto not only ensures operational efficiency and supply chain resilience but also fosters skills development and industrial expertise in the Pilbara region. This initiative represents a long-term investment in both human capital and the industrial capabilities required to maintain Rio Tinto’s world-class iron ore operations.
Gemco Rail Expands Operations to Karratha
Engenco Limited, the parent company of Gemco Rail, is equally enthusiastic about the expansion. CEO Dean Draper emphasized the benefits of establishing a manufacturing presence in Karratha:
We are pleased to deliver on our commitment with the expansion of our operations into the Pilbara region of Western Australia.
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. The Gemco team remains focused on supporting our customers and building capability within our local workforce to deliver high-quality, sustainable rail solutions.
The move allows Gemco Rail to deepen its collaboration with Rio Tinto while strengthening its own industrial capabilities in one of Australia’s most strategic mining regions. By producing rail cars locally, Gemco can respond more efficiently to customer requirements and contribute to the long-term sustainability of Western Australia’s mining supply chain.
International Collaboration Enhances Local Capability
The partnership also benefits from the expertise of CRRC Qiqihar Rolling Stock Co. Ltd (QRRS), a long-standing supplier to Rio Tinto. QRRS has contributed technical knowledge and components to the project, ensuring that the rail cars meet world-class standards in both safety and durability.
QRRS representative Vincent Zhu commented:
We are 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. We will commit to promoting the partnership with Rio Tinto and supply excellent products and services continuously.
This collaboration demonstrates how global expertise, when combined with local manufacturing, can generate tangible economic benefits and strengthen industrial capability in resource-rich regions like the Pilbara.
Building for the Future of WA Mining
The Karratha facility represents more than just a production line—it symbolizes a strategic investment in Western Australia’s industrial future. By localizing rail car production, Rio Tinto and Gemco Rail are fostering a new generation of skilled workers, advancing regional manufacturing capabilities, and ensuring that the state remains at the forefront of mining technology and logistics innovation.
The rail cars will not only improve operational efficiency but also reinforce Rio Tinto’s commitment to sustainable development, regional employment, and economic diversification. As the project scales up, the new facility is expected to support ongoing maintenance, refurbishment, and potential future rail car production for additional mining projects, creating long-term benefits for the region.
The rollout of Rio Tinto’s first Pilbara-made iron ore rail car in Karratha represents a historic milestone for local manufacturing, regional development, and the mining supply chain. Through strategic partnerships with Gemco Rail and CRRC Qiqihar Rolling Stock Co. Ltd, Rio Tinto is demonstrating its commitment to creating economic opportunities, strengthening community ties, and investing in the industrial future of Western Australia.
By combining world-class operational expertise, global supplier collaboration, and local workforce development, Rio Tinto and its partners are ensuring that the Pilbara remains a hub of mining excellence and innovation. The first rail car off the Karratha line is more than a piece of equipment—it is a symbol of industrial progress, regional pride, and the enduring benefits of investing in local capabilities.
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