Rio Tinto Strengthens Supply Chain With Karratha-Based Iron Ore Rail Operations

Rio Tinto has launched an ambitious local manufacturing initiative in Western Australia, introducing newly constructed iron ore rail cars built through a A$150 million collaboration with Gemco Rail. This strategic partnership, established in 2023 alongside CRRC Qiqihar Rolling Stock Co. Ltd and backed by the Western Australian Government, represents a major commitment to regional industrial development.

The project encompasses the production of 100 rail cars designed to transport iron ore from Rio Tinto’s 18 Pilbara mining operations. While 40 units were already completed at Gemco Rail’s Perth facility, the remaining vehicles are being manufactured at a purpose-built workshop in Karratha, consolidating the company’s manufacturing footprint in the region. This expansion marks a significant shift toward localized production infrastructure for iron railing systems and cargo transport equipment.

Each rail car carries a capacity of up to 118 tonnes, optimizing logistics for Rio Tinto’s established port operations at Dampier and Cape Lambert. The newly constructed rail cars commenced their primary function this month, transporting iron ore through the Pilbara network and demonstrating the operational readiness of the initiative.

The Karratha facility represents a transformative investment in regional capacity. Specialized equipment for rail car assembly and bearing refurbishment has been relocated from Perth to support on-site manufacturing. The workshop is projected to create approximately 25 local employment opportunities, providing direct economic benefits to the Karratha community and supporting long-term workforce development in the region.

This manufacturing expansion strengthens Rio Tinto’s supply chain resilience while advancing its strategy of investing in local industry partnerships. The integration of advanced iron railing technology and localized production capabilities positions the company to enhance efficiency across its iron ore distribution network while maintaining stronger ties to Western Australian industrial development.