Full steam ahead for Hunter train manufacturing as NSW Govt gauges interest in new factory

Sep 2026
Steam ... a Sydney Tangara train at Circular Quay
A Tangara train in Sydney. The fleet’s life is currently being extended until the 2030s when it will be replaced. Photo: ANDREW KACIMAIWAI

It’s full steam ahead for commuter train manufacturing in the Hunter with prospective bidders asked to show the NSW Government what they can do.

Expression of interest are now open for manufacturing firms to design and build the next fleet of NSW suburban passenger trains.

The government has launched a $12 billion Future Fleet program to build a state train manufacturing factory to deliver on a 30-year pipeline of domestic train manufacturing.

The government says it is having to rebuild a capability that was sent offshore by the former (Coalition) government and which One Nation NSW wants to keep overseas.

It says the first of the new Tangara-replacement trains will start operations in the early 2030s followed by the replacement of the Millennium and OSCAR fleets into the 2040s, and the Waratah fleet in the 2050s.

The government says all manufacturers, local or international, will be required to support local manufacturing and jobs with a 50% local content for rolling stock contracts.

The government says it is still assessing potential sites for the new factory including a former coal mine at Teralba and the Broadmeadow Locomotive Depot; a decision is expected before Christmas.

The rebuilding program is expected to create 780 construction jobs and 550 production and manufacturing jobs.

Transport for NSW has been working with the rail industry in the lead-up to the EOI release to brief businesses on future work.

The government points out that work is under way on extending the life of the Tangara fleet at the Cardiff rail facility in Newcastle and Sydney, involving 100 newly qualified workers and 20 apprentices.

The EOI will remain open until November 10.

FULL STEAM AHEAD FOR HUNTER REVIVAL

NSW Premier Chris Minns says the EOI “is the next step in bringing back hundreds of skilled jobs, boosting our domestic manufacturing capability and keeping billions of dollars in the pockets of workers and businesses right here in NSW”

Transport Minister John Graham says: “The Liberals said we were no good at building trains in NSW. History proves they were wrong and so will the future.

“The Liberals offshored them in the first place and One Nation’s knocking the plan to bring them back.”

Minister for the Hunter Yasmin Catley says “releasing an Expression of Interest (is asking) manufacturers to show us what they can do”.

“We have the workers, we have the skills and we have the industrial capability …

“The Liberals said we were no good at building trains and sent the jobs overseas. We’re bringing jobs back to the Hunter and proving them wrong.”

Regional Transport Minister Jenny Aitchison says the EOI is “the next big step” in the $12 billion program to return train manufacturing to the Hunter.

“This is not a one-off investment. This is the next chapter of a long-term pipeline of train building in NSW, and giving the next generation of Hunter workers the same opportunity those before them had,” she says.

Minister for Domestic Manufacturing and Government Procurement Courtney Houssos says the program is all about rebuilding sovereign rail manufacturing capability.

“We are committed to leveraging our precious procurement dollars to support local content, local workers, and their communities.”

Transport Deputy Secretary Raquel Rubalcaba says “strong” feedback from industry reveals a real appetite to get involved in the program.

Sydney Trains Chief Executive Matt Longland says a locally designed, built and maintained fleet will deliver long-term benefits.

“It means we can draw on local expertise, respond more quickly to issues and ensure maintenance and parts support are readily available throughout the life of the fleet,” he says.

He says performance and reliability of train services will improve with a locally-based manufacturing facility.

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