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Two Hunter Valley based manufacturers have been shortlisted to tender for the supply of a new intercity train fleet for New South Wales.
Downer EDI Rail and UGL Rail Services are part of four consortia that are eligible to pitch for the multi-billion dollar contract.
It includes the supply and maintenance of about 520 new carriages that will service routes between Sydney and Newcastle, the South Coast and Blue Mountains.
Newcastle Trades Hall Council Secretary Daniel Wallace said it is good news.
"Both (the companies) have partnered up with Chinese rail manufacturers," he said.
"The big question is, in a partnership, what percentage of that work would be done here?
"One of the things we don't want is a token gesture of simply greasing the wheels once the trains arrive here in New South Wales."
The government will award the contract next year, with the new carriages expected to be finished by 2024.
The contract also includes the fit out and operation of a maintenance facility.
Mr Wallace said he remains unsure about how much benefit there would be for the local manufacturing industry.
"I haven't got a lot of confidence that if we were awarded one of the contracts that work would be done here locally in the Hunter," he said.
"It would mostly be done overseas and we would be doing the last minute fit outs."
This article first appeared on www.abc.net.au
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