‘Flatpack’ buses to be built in NSW a broken promise by state government, union claims

Plans to build more than 100 “flatpack” buses from China in one Australian state has drawn the ire of a powerful transport union.

The powerful rail and transport union has claimed the NSW government has broken a pre-election promises to protect local manufacturing after announcing new “flatpack” buses would be imported from China.

Transport Minister Jo Haylen revealed last week the state government was procuring about 1200 new electric buses by 2028, including 126 battery-electric buses to be built at a new purpose-built facility in Nowra.

Ms Haylen said the “local content” of the buses would increase over time with a target of 50 per cent local content by 2027, which she said manufacturer Foton Mobility Distribution would get close to at the Nowra site.

“We will see over time the different components and elements of a bus be sourced by local manufacturers. It’s that ecosystem of the different parts and technologies and skills that will also benefit local businesses, Ms Haylen said.

Despite promising to rebuild local manufacturing, the Rail, Tram and Bus Union said outsourcing buses showed the Minns government had not learned from the past government’s failures.

Transport Minister Jo Haylen (beige jacket) announced last week 126 electric buses would be manufactured in Nowra. Picture: Supplied

“Not only is this contrary to the government’s pre-election commitment to build our transport here in Australia, it’s also simply poor and risky transport planning,” Tram and Bus Division secretary David Babineau said.

“How anyone can think that purchasing flatpack buses from overseas for our commuters to travel on is a good idea is beyond me.

“Our buses are already a mess as a result of the decision to privatise them.

“It is becoming increasingly clear that our buses are a vital link in the public transport chain that simply don’t matter to this government.”

Mr Babineau described outsourcing by the previous Liberal government as “disastrous”, which included Chinese-made Emerald Class ferries that suffered from steering failures, cracked fuel tanks, emergency doors that would not open, and engine failure.

“The NSW government’s pre-election commitment to ‘build them here’ is under serious jeopardy,” he said.

“It was a great policy that seems to be left wanting because this government can’t seem to come up with its own transport strategy or manage Transport for NSW.

The 6000 square metre manufacturing facility at Nowra is expected to get underway from late-2025

“Providing good quality public transport is a basic responsibility of a state government, but our government is failing dismally on that front at the moment.”

While the announcement may have drawn the ire of the union representing bus drivers, it was well received by the manufacturers union.

In Nowra last week for the announcement last week, Australian Manufacturing Workers Union NSW State Secretary Brad Pigeon said it was significant for members.

“What this means is a shift from hope to somewhat certainty,” he said.

“For a long time, we’ve been advocating to build things here in NSW.

“We’ve seen so many projects going offshore, whether it’s inner city fleet (or) acquisition of buses.

Mr Pigeon said AMWU members were concerned about the infrastructure they were working on.

“The buses are tired. They’re somewhat exhausted, and they need to be replaced,” he said.

“Announcements like this give certainty to local jobs, investment in communities, and also making sure that we build things here.”

The 6000 square metre manufacturing facility at Nowra is expected to get underway from late-2025, subject to council approval.

Foton was awarded a contract to deliver the buses to service Greater Sydney, with the site also producing electric-battery trucks and hydrogen fuel cell engines.

Under the Zero Emission Buses program, the state government will also convert 11 existing bus depots in Greater Sydney to battery-electric technology.

NSW Premier Chris Minns said the “state-of-the-art facility would create ongoing jobs in regional NSW, while also delivering emissions-free public transport.

“The offshoring of public transport by the former government was a complete disaster, which is why we’re building these buses here in NSW,” he said.

“Workers across NSW are great at building public transport like these buses, and under our government they’re building them here again.”

Originally published as ‘Flatpack’ buses to be built in NSW a broken promise by state government, union claims