Rio Tinto begins construction on iron ore rail cars in Australia

Rio Tinto’s (RIO) first locally made iron ore rail car has been built in Western Australia, as it steps up its use of domestic manufacturing across its iron ore business. The company is investing about A$150M to purchase 100 locally built rail cars, as well as continued investment in bearing refurbishment for its Pilbara operations. Its partnership with Gemco Rail and CRRC Qiqihar Rolling Stock Co. Ltd is also supported by the Western Australian government and establishes a new local supply chain that delivers jobs and boosts manufacturing in the state. The first 40 rail cars will be built at Gemco’s Forrestfield facility in Perth, as it sets up a manufacturing workshop in Karratha, where 60 more rail cars will be made, starting later this year.