Perth-based company Gemco Rail is the recipient of $6.9 million in funding under the Local Manufacturing Investment Fund (LMIF). This grant fund has enabled Gemco Rail to upgrade its Forrestfield facility and establish a new facility in Karratha.
As a result of the LMIF, they have been able to secure the tender to build 100 railcar wagons for mining giant Rio Tinto as well repair and refurbish key wagon componentry.
The new railcars will be manufactured, mantained and serviced at its Forrestfield facility as well as at its new facility in Karratha which is on track to be completed by the end of 2024. Gemco Rail will be supplying 50 wagons initially followed by 10 a year purchased over the next 5 years. The first locally-built railcar is expected to be completed by mid-2024.
Local manufacturing of iron ore railcar wagons supports the diversification of WA's economy and also helps lower risks associated with global supply chains. This agreement between Gemco Rail and Rio Tinto will help revitalise and future-proof local manufacturing in WA including the Pilbara region.
The $15 million LMIF fund supports local companies selected by project proponents to enhance their competitiveness in important market sectors.
