BHP will lead an industry-first initiative to construct 140 “flat-pack” iron ore cars over the next four years in Perth, in partnership with UGL, QRRS and supported by the State Government.
The initiative, which is set to boost Western Australia’s manufacturing sector, will go forward following a successful initial trial, where BHP 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 predominantly been built offshore, with BHP ordering 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, and at least 12 UGL jobs have been sustained through the project.
Following the trial’s early success, BHP has committed to constructing an additional 120 cars over the next four years in WA, with the potential to create and sustain dozens more local jobs.
BHP is continuing to build local content through manufacturing and maintenance opportunities to ensure the local ore car supply chain is sustainable and competitive.
BHP Asset President Western Australian Iron Ore, Brandon Craig, said, “BHP makes a significant contribution to the Western Australian 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 Western Australia.
“Through this investment, we will support the Western Australian 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 Western Australian Government, and we thank them for their support.”
Premier of Western Australia, Mark McGowan, 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.
“I’m pleased to see BHP, QRRS and UGL collaborate on this industry-first initiative and look forward to seeing its capability build into a sustainable and long-term project.”
UGL Managing Director, Doug Moss, 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.”
QRRS Managing Director, Zhang Quanyong, 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.”
