The NSW government has announced a $12 billion investment over 15 years to construct a new manufacturing facility in the Hunter Valley for the next generation of Tangara trains.

Two potential sites—Glencore’s Teralba coal mine and the Broadmeadow Locomotive Depot—have been identified, with due diligence to determine the final location.The decision comes amid preparations for the 2026 state election and rising competition from One Nation in Hunter seats.The funding will cover train manufacturing, facility upgrades, and infrastructure works, creating 550 ongoing jobs and 780 construction roles.

Premier Chris Minns emphasized the importance of domestic manufacturing, contrasting it with the previous Coalition government’s reliance on overseas train purchases.The project will replace the aging Tangara fleet by 2036, with subsequent replacements for other fleets by 2040s and 2050s.The Spanish-built regional fleet ordered by the Coalition will now enter service in 2028, delayed from its original 2023 timeline.