WA is set for a rebirth of its manufacturing industry, according to Premier Mark McGowan, with the State Government announcing a $1.6 billion package for new locally built railcars.

The package of 246 railcars — or 41 six-car trains — that will go out to tender this week and are estimated to start rolling off the manufacturing line by 2021, will have a 50 per cent local content requirement.

In the first stage, 102 cars — or 17 six-car trains — will be ordered for planned expansions of the Transperth network, including the proposed Ellenbrook line, for which $340 million has been budgeted.

The remaining 144 cars — or 24 six-car trains — would be added to the tender to replace existing A-series models on the heritage Fremantle, Armadale and Midland lines and increase the State’s bargaining power with manufacturers.

A-series models on the heritage lines were bought in 1991, when electrified rail started in Perth, and are due to reach the end of their operating life in the coming years.

The last package of trains built for Transperth’s network ahead of the Forrestfield-Airport Link opening in 2020 were manufactured in Queensland or overseas.

But Mr McGowan said the decision by other States such as Queensland and NSW to move their train manufacturing overseas had led to disastrous results.

“We haven’t done this for some years, but historically there was some work in this area,” the Premier said.

“Other States do (build trains locally) and what we’ve seen with them is you get high-quality trains at a relatively affordable price.”

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Transport Minister Rita Saffioti said the latest forecasts showed without expanding the capacity of the network there would be almost 15,000 people unable to board trains in morning peak hour in 2031.

She said just 2 per cent of current train manufacturing work was done locally.

“We want to get value for money, so we combined the Metronet expansion together with the replacement of the A-series,” Ms Saffioti said.

She said the Government would continue talks with the local industry and would work to develop local train manufacturing skills.

Opposition Leader Mike Nahan said the Government needed to produce the business case for the program.

“We don’t know how much value for money we’re getting,” he said. “We need to know the additional cost of building those railcars.

“How much more costly are they and do they have value for money compared to those built in Queensland or Victoria.”