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$12 billion plan to revive train manufacturing in the Hunter

July 6, 2026 8:38 am in by
Image: Transport for NSW

The Hunter is set to become one of the country’s largest train manufacturing hubs after the State Government announced a $12 billion investment in a long-term rail manufacturing pipeline for the region.

The plan centres on a new state-owned train manufacturing facility, to be operated by a private manufacturer, backed by a 15-year rolling stock pipeline. Rather than commissioning trains project by project from overseas suppliers, the government says the long-term certainty will encourage local investment, apprenticeship training and stronger domestic supply chains.

Two potential sites have been identified following an extensive search – a former coal mine at Teralba and the Broadmeadow Locomotive Depot, located near where the original Tangara fleet was manufactured between 1986 and 1998. Site selection will depend on due diligence and stakeholder consultation, with the Teralba option also requiring further engagement with Glencore and its partners over potential land acquisition.

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The facility is expected to anchor more than 30 years of train manufacturing in the region, beginning with a new Tangara fleet before moving to replacement trains for the Millennium and OSCAR fleets in the 2040s, and the Waratah fleet in the 2050s. The government says the project could employ up to 780 workers during construction and 550 ongoing roles across the facility and supply chain.

Minister for the Hunter Yasmin Catley said it was a proud day for the Hunter, adding that rail manufacturing was an important chapter in the region’s history and would now be an important part of its future under the current government.

The government says the train manufacturing investment sits alongside a separate $6.5 billion, 10-year commitment to local electric bus manufacturing announced in the most recent state budget. Next steps include finalising the factory site and opening a formal Expression of Interest for construction and fleet manufacturing contracts.

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