$12 billion investment to rebuild Hunter train manufacturing
Saturday, 4 July 2026
The Hunter is set to once again become one of Australia’s largest train manufacturing hubs, with the Minns Labor Government investing $12 billion to establish a long-term pipeline of passenger train manufacturing in NSW.
The investment will deliver a new state-owned train manufacturing facility in the Hunter, operated by a private manufacturer, alongside a rolling stock pipeline over 15 years.
Rather than buying trains project by project from overseas, this will provide the long-term certainty needed for industry to invest locally, train apprentices, strengthen local supply chains and rebuild train manufacturing in NSW.
After an extensive search, two potential sites have been identified – a former coal mine at Teralba and the Broadmeadow Locomotive Depot near where the original Tangara fleet was manufactured between 1986 and 1998.
Site selection will be subject to due diligence and stakeholder consultation. In the case of Teralba, it will also be subject to further engagement with Glencore and partners over potential site acquisition.
The new facility is expected to anchor more than 30 years of train manufacturing in the Hunter. Following construction of the new Tangara fleet, the pipeline will continue with the replacement of the Millennium and OSCAR fleets in the 2040s, before the Waratah fleet in the 2050s.
This investment is part of the long-term plan to rebuild local train manufacturing after 12 years of offshoring transport manufacturing jobs by the former Liberal-National Government.
It also delivers on the Minns Labor Government’s election commitments to set a target of a minimum 50 per cent local content for rolling stock contracts, and to begin procurement of the new Tangara fleet by the end of the first term in office.
This landmark investment in stable, well-paid manufacturing jobs will address decades of industrial change in the Hunter following the closure of steelworks, changes in the mining industry and the loss of train and bus manufacturing.
The site is expected to employ up to 780 workers in construction and 550 ongoing jobs in the facility and supply chains.
To begin rebuilding the Hunter train manufacturing workforce, the Minns Labor Government has established two production lines of the $447 million Tangara Life Extension program at the Cardiff rail facility, which will employ 100 qualified workers and 20 apprentices.
In addition to rebuilding train manufacturing, the Minns Labor Government is also investing in local bus manufacturing with a 10-year $6.5 billion investment in last month’s NSW budget for a ten-year pipeline of new electric buses and electric depot infrastructure.
Next steps include finalising site selection and a formal Expression of Interest for the contracts to build the facility and manufacture the train fleets.
Transport have conducted supplier workshops to ensure businesses are ready to bid as part of that process.
Premier Chris Minns said:
“The Hunter knows how to build trains. Our job is to make sure it has the opportunity to build them again.
“But we’re not announcing a one-off order of trains. We’re building a long-term pipeline of work that gives industry the confidence to start investing in NSW, employing apprentices in NSW and grow local supply chains.
“When the Government spends billions of dollars on new trains, I want as much of that investment as possible staying here in New South Wales, creating jobs, supporting local businesses and strengthening regional communities.”
Minister for Transport John Graham said:
“The Liberals sent billions of dollars and thousands of jobs offshore, this is a big step forward in rebuilding our train manufacturing industry so that more wages and jobs go to the people of NSW.
“The investment in this facility combined with the commitment to local content will give the manufacturing industry the certainty they need to invest in NSW operations.
“Along with the jobs, this investment will make sure our future rail fleets are fit for purpose, unlike the former government’s procurement strategy where overseas trains didn’t fit our tunnels or tracks.”
Minister for the Hunter Yasmin Catley said:
“This is a proud day for the Hunter. Rail manufacturing is an important chapter in our history, and now under our government, it will be an important part of our future too.
“The people of the Hunter know how to build trains, and we look forward to bringing on the next generation of workers to deliver the future fleet.
“This is more than just good local procurement policy – it’s an assurance that the Minns Labor Government is committed to strengthening jobs and opportunities for NSW families.”
Minister for Regional Transport, Jenny Aitchison said:
“This is a generational investment from the Minns Labor Government, that will support local workers and businesses for decades to come.
“We’re bringing train manufacturing back home with this $12 billion investment, that will create jobs, boost local industry and see more trains built right here.
“The Hunter has a proud history of train building, and with today’s announcement, it is set to reclaim its place as one of Australia’s leading manufacturing hubs.”
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said:
“This investment shows just how bright the future is for the Hunter. We are rebuilding an industry that once powered this region and giving it a secure pipeline for decades to come.
“We are using the Government’s purchasing power to back local manufacturers, local workers and local supply chains. That means more jobs staying here in NSW, and more opportunities for businesses in the Hunter to grow.
“We know that manufacturing jobs don’t stand alone. For every job in the factory, a further three and a half are created in the supply chain, and we want those jobs in NSW.
“The Hunter has the skills, the history and now the pipeline to once again be a powerhouse of train building in Australia.”
Brad Pidgeon State Secretary of the Australian Manufacturing Workers Union NSW said:
“This marks an important moment in our campaign to bring train manufacturing jobs back to NSW, after the former government sent thousands of jobs offshore.
“A dedicated state-owned train building facility in the Hunter, and this steady long-term fleet pipeline, will translate to decades of secure highly skilled manufacturing jobs for local workers.”
