A resources giant began assembling carriages domestically instead of overseas.
BHP is once again putting together, welding and commissioning train components in Australia. The company recently confirmed it would trial constructing 140 “flat pack” iron ore cars at UGL’s Bassendean facility, 10km northeast of the Perth CBD.
CRRC Qiqihar Railway Rolling Stock (QRRS) will keep manufacturing car components in mainland China before shipping them to Australia. The Chinese state-run entity has built the vehicles overseas for more than a decade.
Once iron ore cars are assembled and tested they will be deployed to different mine sites. Five iron ore cars have already been delivered to the Pilbara region. A further 15 are expected to be built and delivered no later than February 2023, creating dozens of local jobs.
BHP is continuing to build local content through manufacturing and maintenance opportunities to ensure the local ore car supply chain is sustainable and competitive.
“We are taking the first important step by working together with the expert teams at UGL and QRRS to build ore cars right here,” BHP WA iron ore asset president Brandon Craig said in a public statement.
“Through this investment we will support the WA manufacturing sector to strengthen its capability and create new opportunities for business growth and local employment.”
The State Government welcomed the proponent’s decision to bring jobs back to Australia.
“Making wagons locally is not only a job creator, it is about supporting our WA businesses and ensures we continue to keep a long-term pipeline of work. It will also reduce our reliance on overseas suppliers and lower risks associated with global supply chains,” State Premier Mark McGowan said.
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