More than 1000 local jobs will be created after the Andrews government announced a $2 billion package to build 65 new high-capacity trains in Melbourne's west had been granted to an international consortium.
The decision has been welcomed by many due to a 60 per cent local content requirement, but the Australian Workers Union says it is "heart-breaking" that some jobs will be sent to a Chinese firm with a poor record.
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Melbourne gets new high-capacity trains
The Andrews government has announced a $2 billion package to build 65 trains in Melbourne's west. Video supplied by Victorian Government.
The consortium Evolution Rail is headed by Downer Rail and the Chinese-owned CRRC, with finance from the Plenary Group.
The Plenary Group is a big donor to Victorian Labor, giving $48,650 to the state branch last financial year.
![Premier Daniel Andrews on the factory floor at the Downer Rail workshops in Newport.](/web/20160914191142im_/http://www.theage.com.au/content/dam/images/g/r/e/3/q/t/image.related.articleLeadwide.620x349.gre0wj.png/1473667121690.jpg)
The AWU, which represents workers at rival bidder Bombardier, has previously warned that the subsidiary of CRRC, Changchun Railways Vehicles has a poor track record.
The trains will be 20 per cent longer than the existing fleet and help boost capacity across the network. They will be assembled in Newport at Downer Rail.
The decision by Labor follows a 12-month tender process.
Premier Daniel Andrews said the package would include 60 per cent local content, as well as a requirement for 15 per cent of the workplace to be apprentices and from disadvantaged backgrounds.
![The government's $2 billion package will see 65 new, high-capacity trains built in Melbourne's west.](/web/20160914191142im_/http://www.theage.com.au/content/dam/images/g/r/e/3/q/3/image.related.articleLeadwide.620x349.gre0wj.png/1473667121690.jpg)
Mr Andrews said the project would create 1100 jobs.
The $2 billion public-private partnership will last 35 years and includes maintenance. A new stabling and maintenance depot will be built in Pakenham East creating 100 jobs.
![The project will create 1100 extra jobs at the Newport factory.](/web/20160914191142im_/http://www.theage.com.au/content/dam/images/g/r/e/3/p/k/image.related.articleLeadwide.620x349.gre0wj.png/1473667121690.jpg)
The first of the 65 trains are due to be tested on the network in November 2018, the same month the next state election is due.
Mr Andrews also announced that another nine six-car trains had been ordered from Alstom in Ballarat.
Downer's Newport facility will also undergo a $16 million upgrade and CRRC will set up a new regional headquarters in Melbourne.
"The state's largest single order of new trains will be built in Victoria, for Victoria," Mr Andrews said.
"We have a consistent policy and it is one that says let's put people first, let's make sure Victorian taxpayers' dollars support Victorian jobs."
A special partnership has also been struck to help transition Toyota workers into the locomotive sector.
![X'Trapolis 961M at Flinders Street](http://web.archive.org./web/20160914191142im_/http://www.smh.com.au/content/dam/images/g/r/e/3/3/0/image.imgtype.articleLeadwide.620x349.png/1473640236748.png)
X'Trapolis 961M at Flinders Street Photo: HMT Melbourne's Public Transport Gallery
AWU state secretary Ben Davis said trains built by the Chinese company for Singapore in the past had serious structural problems and there were reports from South Africa that CRRC did not meet its promised local content.
He said Bombardier would have provided 70 per cent local content.
"The decision is plain wrong when $2 billion of Victorian taxpayers' money goes to a contractor with a track record of not delivering the goods, or the jobs," Mr Davis said.
"The contract should have gone to the bidder who would create the most local jobs. It is beyond disappointing when jobs go to China, but this is heart-breaking to see what should have been a manufacturing boost for the state turned into little more than an assembly project."
Mr Andrews used the announcement to attack the previous Coalition government's procurement record as well as attack the Turnbull government for its navy ship building strategy.
The announcement was immediately welcomed by the Australian Manufacturing Workers Union.
"This announcement not only provides security and certainty to hundreds of workers and their industry, it also commits to long-term jobs and training opportunities for a new generation of highly-skilled workers," said AMWU State Secretary Steve Dargavel.