Manufacturing News

Next Generation Tram Project boosts local manufacturing


The largest investment in locally made trams in Australian history has been made, as Bombardier Transportation Australia is awarded a $1.85 billion contract under the Victorian government’s Next Generation Trams Project to build 100 trams in the state. 

This will support up to 1,900 local jobs in manufacturing, supply chain, and the construction of a new purpose-built depot and maintenance facility. 

“We are delivering more comfortable, energy efficient and accessible transport services for Victorians to ensure they get to where they need to go safer and easier,” Victorian minister for Public Transport Ben Carroll said. 

“Victoria’s rolling stock industry is the envy of the nation, and this project will support up to 1,900 local jobs throughout the supply chain and play a significant part in delivering more accessible services on our network.” 

A local content quota of 65 per cent has been included as a requirement for the Next Generation Tram Project – the biggest for any train or tram project since rolling stock local content quotas were introduced. 

The Australian Industry Group (Ai Group) has also welcomed this investment, saying it should enable Victorian manufacturing to develop a strongly competitive approach to tram manufacturing and support thousands of jobs. 

“The local content figure is a significant one and should provide certainty to local manufacturers enabling capital investment, skilling of workers and competitive global pricing,” Victorian head of Ai Group Tim Piper said. 

“We look forward to this decision helping to create a strong heavy engineering sector in the state.” 

Following a competitive design and tender process, the proposed plans for the trams will be refined in consultation with key stakeholders including representatives from accessibility groups, passengers and tram drivers. 

The Next Generation Tram order will progressively replace some of Melbourne’s longest-serving high-floor trams, to ensure the public transport network is accessible to all Victorians. 

For more information on the Next Generation Tram Project, click here.  

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