Tag Archives: rail cars

BHP collaborates with CIMIC’s UGL and QRRS on ‘flat pack’ rail cars for the Pilbara

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An industry-first initiative to construct 140 ‘flat pack’ iron ore cars over the next four years in Perth, Western Australia, will develop capability and boost the state’s manufacturing sector, through a collaboration between BHP, UGL, QRRS and supported by the State Government, BHP says.

In an initial trial, BHP has shipped ore car components from QRRS’s factory in China to UGL’s Bassendean facility as ‘flat packs’, where the UGL team has assembled, welded and commissioned the cars before delivering them to BHP’s Pilbara operations.

For over a decade, iron ore cars have traditionally been built offshore. On average, BHP orders several hundred each year.

To date, five iron ore cars have been completed and delivered to the Pilbara. A further 15 are due to be built and delivered by February 2023. At least 12 UGL jobs have been sustained through the project, according to BHP.

Following the trial’s early success, BHP has committed to constructing an additional 120 cars over the next four years in Western Australia.

BHP says it is continuing to build local content through manufacturing and maintenance opportunities to ensure the local ore car supply chain is sustainable and competitive.

BHP’s Asset President WA Iron Ore, Brandon Craig, said: “BHP makes a significant contribution to the WA economy, and we want to keep building and strengthening that contribution through more local manufacturing.

“We are taking the first important step by working together with the expert teams at UGL and QRRS to build ore cars right here in WA.

“Through this investment, we will support the WA manufacturing sector to strengthen its capability and create new opportunities for business growth and local employment.

“This is a terrific initiative that we’ve been able to develop with our partners and the West Australian Government, and we thank them for their support.”

Premier of Western Australia, Mark McGowan MLA, said: “This project is a testament to the work of our Iron Ore Railcar Wagons Manufacturing and Maintenance Action Group, which is committed to boosting local manufacturing and securing local jobs.”

Doug Moss, UGL Managing Director, said: “We are proud to be the only Australian manufacturer of freight locomotives and we’re pleased to extend this capability through the re-introduction of rail ore car assembly into Australia, and particularly in Western Australia.

“We look forward to continuing this program with BHP and creating a strong and sustainable ore car assembly capability in the state.”

UGL is CIMIC Group’s specialist end-to-end engineering and services provider.

Zhang Quanyong, QRRS Managing Director, said: “As a long-term supplier of BHP, QRRS will continue to support all projects that BHP is involved in. We are pleased to take this partnership further and supply more good products and service to BHP.”

Rio Tinto makes Western Australia Pilbara rail car pledge

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Rio Tinto says it is supporting iron ore rail car manufacturing in Western Australia with a commitment to use local suppliers to build ore rail cars for its Pilbara mining operations.

A tender will soon be released to the local market for an initial purchase of 50 ore rail cars, followed by an ongoing commitment of 10 ore cars a year for the next five years.

The tender will be released through the Rio Tinto Buy Local portal, a resource dedicated to making local suppliers aware of opportunities to partner with Rio Tinto and be part of our supply chain, the miner says.

“Western Australia has been an important part of Rio Tinto’s history for more than 50 years as the company built a world-class iron ore business,” it says. “In 2020, the company spent A$7.5 billion ($5.4 billion) with more than 2,000 local businesses based in Western Australia.”

Rio Tinto is also part of the Western Australia Government’s iron ore rail car action group, launched as part of the Western Australia Recovery Plan to develop a competitive iron ore rail car manufacturing industry in Western Australia.

Rio Tinto Iron Ore Chief Executive, Simon Trott, says: “Building Rio Tinto’s ore rail cars here in Western Australia will support local manufacturing and create jobs for West Australians. Rio Tinto is proud to lead the way in building iron ore rail cars in Western Australia, in line with the vision of state government’s iron ore rail car action group. I look forward to partnering with local businesses to support and grow the local manufacturing industry in Western Australia.

“Ore cars are a critical part of our mining operations and building capacity to manufacture ore cars locally in Western Australia will deliver significant benefits for Rio Tinto and the Western Australian economy.”

Western Australia Premier, Mark McGowan, says: “This is a pleasing outcome and I commend Rio Tinto for taking the first step and committing to our local steel manufacturing industry which will support more jobs for Western Australians. Rio Tinto’s commitment is a positive result off the back of the state government’s independent prefeasibility study, which identified initiatives for the manufacture, refurbishment and maintenance of iron ore railcar wagons.

“This was about securing an ongoing pipeline of work for the long-term manufacture of iron ore wagons and critical rail wagon parts, which will deliver jobs and economic benefit for the state into the future. Rio Tinto’s purchase of Western Australian made railcars that will be used right here in our state is something I encourage other iron ore companies operating in Western Australia to get on board with and increase local content and local jobs.”