Former coalmine site chosen for $12 billion NSW train manufacturing hub

Teralba facility to build next generation of passenger trains, creating hundreds of jobs in the Hunter region

By LineZotpaper

Published19 October 2026

Read Time3 min

Sources2 outlets

The NSW government has selected a former coalmine site at Teralba in Lake Macquarie as the preferred location for a state-owned train factory that will build the next generation of passenger trains under its $12 billion Future Fleet Program, promising to revive local rail manufacturing.

The site, owned by Macquarie Coal, was chosen over the Broadmeadow locomotive depot in Newcastle after a preliminary assessment found it offered a larger and more flexible space for manufacturing, assembly, commissioning and on-site dynamic testing, with room for future expansion. The government said the location also provides an opportunity to transform former mining land into a major manufacturing and employment hub.

The facility is part of Premier Chris Minns' $12 billion Future Fleet Program, announced in July, to rebuild train manufacturing capability in the Hunter. It is expected to support up to 780 jobs during construction and about 550 ongoing roles across the facility and its supply chains.

Business Hunter chief executive Bob Hawes welcomed the announcement as "fantastic" news for the region. "This is the sort of industry development that we want to see in this region," he said. "It digs into a deep vein of experience and opportunity that the region knows it can deliver on, with our skills and workforce here as well as the developed industries that already exist that can service and operate in this environment."

The Hunter has a long history of rail manufacturing, with Newcastle firm Goninan, founded in 1899, building the Tangara trains at Broadmeadow in the late 1980s and 1990s, and the Millennium fleet later built at Cardiff. The new facility will manufacture the Tangara replacement fleet first, followed by future replacement programs for the Millennium and OSCAR fleets in the 2040s and the Waratah fleet in the 2050s.

Premier Chris Minns said the project would build on the state's manufacturing capacity. "For more than a century, workers in the Hunter proudly built the trains that carried millions of people around Sydney," he said in a statement. "Then those jobs were sent overseas. We're bringing them back, because we believe NSW should build more of the things we need right here at home."

The government said it would progress detailed site investigations and due diligence with Glencore, which part-owns Macquarie Coal, to enable further site planning, design and procurement work. The timeline for the facility's completion has not been finalised. Broadmeadow remains an alternative option while investigations continue at Teralba.

Analysis

Why This Matters

The project aims to revive rail manufacturing in the Hunter region after decades of jobs being sent overseas, creating hundreds of skilled construction and ongoing roles.
It represents a major state government investment in domestic industrial capability, with implications for supply chains and training in advanced manufacturing.
The facility is planned to serve train replacement programs for decades, affecting commuter rail services across NSW.

Background

NSW once had a thriving rail manufacturing industry, with the Hunter region at its centre. Companies like Goninan built iconic train fleets such as the Tangara and Millennium trains. However, much of that manufacturing was outsourced overseas in the 2000s. In July, Premier Chris Minns pledged $12 billion under the Future Fleet Program to rebuild that capability. The government shortlisted two sites near Newcastle: the Broadmeadow locomotive depot and a former coalmine at Teralba owned by Macquarie Coal, part-owned by Glencore.

Key Perspectives

NSW Government: Sees the Teralba site as the optimal location due to its size and flexibility, enabling on-site testing and future expansion. The project is framed as bringing jobs back home and strengthening the state's manufacturing sector. Business Hunter: The local business lobby welcomed the decision as tapping into the region's existing skills and industrial base, describing it as a positive development for the Hunter economy. Critics/Skeptics: The timeline for the facility's completion remains unconfirmed, and detailed due diligence is still underway. Broadmeadow remains a potential fallback, meaning the Teralba choice is not yet final. Questions may arise about costs and the viability of onshoring manufacturing at scale.

What to Watch

Completion of site investigations and due diligence with Glencore, which will determine whether Teralba proceeds or Broadmeadow is activated.
Final timeline for the facility's construction and the start of Tangara replacement fleet manufacturing.
Potential political and community reactions, especially regarding land use change from mining to manufacturing.

Sources

Former coalmine site at centre of $12 billion plan to build trains · Just In
Former coalmine site at centre of $12 billion plan to build trains · Latest business news

Checked

12 claims in this story checked against 1 source: 12 supported.

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SupportedFormer coalmine site chosen for $12 billion NSW train manufacturing hubJust In: “A former coalmine site in Lake Macquarie is set to become a train factory where the next generation of NSW passenger trains will be built. NSW Premier Chris Minns pledged $12 billion to revive local train manufacturing capability in July”
SupportedTeralba facility to build next generation of passenger trains, creating hundreds of jobs in the Hunter regionJust In: “the next generation of NSW passenger trains will be built. ... expected to support up to 780 jobs during construction and about 550 ongoing jobs across the facility and supply chains.”
SupportedNSW government selected former coalmine site at Teralba as preferred location for state-owned train factoryJust In: “the government announced a former mine site at Teralba, owned by Macquarie Coal, as the preferred location”
SupportedSite chosen over Broadmeadow locomotive depot after preliminary assessment found larger and more flexible spaceJust In: “chosen over the Broadmeadow locomotive depot in Newcastle... Teralba was 'a larger and more flexible site that could accommodate train manufacturing, assembly, commissioning and on-site dynamic testing' with capacity for future expansion”
SupportedGovernment said location provides opportunity to transform former mining land into manufacturing and employment hubJust In: “opportunity to transform former mining land into a major 'manufacturing and employment hub'”
SupportedFacility is part of Premier Chris Minns' $12 billion Future Fleet Program, announced in JulyJust In: “part of the government's $12 billion Future Fleet Program to rebuild train manufacturing capability in the Hunter... Premier Minns pledged $12 billion to revive local train manufacturing capability in July”
SupportedIt is expected to support up to 780 jobs during construction and about 550 ongoing rolesJust In: “expected to support up to 780 jobs during construction and about 550 ongoing jobs across the facility and supply chains.”
SupportedBusiness Hunter chief executive Bob Hawes welcomed announcement as 'fantastic' newsJust In: “Business Hunter chief executive Bob Hawes said the announcement was 'fantastic' news for the region.”
SupportedHunter has long history of rail manufacturing; Goninan, founded in 1899, built Tangara at Broadmeadow, Milennium at CardiffJust In: “Newcastle firm Goninan, founded in 1899, building the Tangara trains at Broadmeadow in the late 1980s and 1990s, and the Millennium fleet later built at Cardiff.”
SupportedNew facility will manufacture Tangara replacement first, then replacements for Millenium, OSCAR in 2040s, Waratah in 2050sJust In: “starting with the new Tangara replacement fleet before future replacement programs for the Millennium and OSCAR fleets in the 2040s and the Waratah fleet in the 2050s.”
SupportedPremier Chris Minns said project would build on state's manufacturing capacity; quote about bringing jobs backJust In: “Mr Mins said: 'For more than a century, workers in the Hunter proudly built the trains that carried millions of people around Sydney. Then those jobs were sent overseas. We're bringing them back, because we believe NSW should build more of the things we need right here at home.'”
SupportedGovernment said it would progress detailed site investigations with Glencore; timeline not finalized; Broadmeadow alternativeJust In: “progress detailed site investigations and due diligence with Glencore... The timeline for the facility's completion has not been finalised. Broadmedow remained an alternative option at this stage”