A CASTLEMAINE manufacturer will make more than 200 turnouts for the 1700-kilometre freight rail line being built between Melbourne and Brisbane.
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The Australian Rail Track Corporation has awarded an $80 million contract to Vossloh Cogifer Australia as part of the Inland Rail project.
Deputy Prime Minister and infrastructure, transport and regional development minister Michael McCormack said the work would be done primarily from the company's Castlemaine production site.
Mr McCormack said Vossloh would need 32 additional staff over five years to support the design and manufacture of the turnouts.
"The Australian Government's investment in Inland Rail is delivering a world-class freight backbone that will stimulate economic growth, build supply chain resilience and enhance market access," he said.
Liberal Senator for Victoria Sarah Henderson said the contract was a big boost for regional Victoria and wonderful news for Castlemaine and the Bendigo electorate.
"This $80 million turnout contract for the component that allows a train to diverge from one track to another guarantees jobs for Australians and provides stimulus for local manufacturers," Senator Henderson said.
Vossloh AG chief executive Oliver Schuster said the Inland Rail order was the biggest in the company's history in Australia.
"We are delighted that our long-standing customer ARTC has once again placed its trust in us and that we can contribute to the biggest rail infrastructure project for freight transport in Australia," Mr Schuster said.
"We have provided our products for some of the nation's largest infrastructure projects across Australia, and we're looking forward to getting started on Inland Rail."
Member for Bendigo Lisa Chesters congratulated the company on securing the contract.
She said central Victoria had been home to a proud train and track manufacturing industry for more than 100 years.
"This funding will help ensure that Vossloh Cogifer continues to be part of our nation's track manufacturing future," Ms Chesters said.
Bendigo Manufacturing Group chair Mark Brennan said the contract would stimulate local jobs and provide additional jobs in the Victorian supply chain. It would also give Vossloh Cogifer Australia an opportunity to expand.
Mr Brennan understood the company had been looking at land opportunities in the region and was finding it challenging.
He said getting the Bendigo industrial land strategy finalised would be a great advantage to help companies be able to expand and work in the region.
Mr Brennan also understood the new jobs that would come with Vossloh's $80m contract would be of a higher skill level.
"It's a great opportunity for people within the organisation to grow and bring new jobs to the region," he said.
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