Local support is building for Hillside Engineering, in Dunedin, to bid to build a new fleet of trains for its owner KiwiRail.
The Government in November announced a $500 million loan to KiwiRail to invest in Auckland's metro rail system to buy electric trains.
Since that announcement, the Otago Chamber of Commerce had co-ordinated meetings, following the initiative of Dunedin South MP Clare Curran.
Chamber chief executive John Christie said the meetings had involved all local members of Parliament, union delegates and regional council and business representatives.
Mr Christie, also a spokesman for the group, said that to have interested parties uniting around the table supporting local companies was full of exciting possibilities.
"The opportunity for local company Hillside Engineering to tender for this work is supported by local interested parties due to the significant boost it would provide the local economy, along with the opportunity to retain and grow our local skill base."
Details of the tender process and underlying expressions of interest were expected this month with the successful tender and contract awarded in October.
In early March last year, Hillside won its second major contract in less than a year when it was awarded a $39.9 million Government contract to build 17 passenger carriages for TranzScenic rail routes.
Those carriages were expected to be completed by early this month.
The Hillside contract was part of a $115 million spending package announced by Infrastructure Minister Bill English.
The remaining $75 million was to be spent buying 20 locomotives from China to be used on key freight routes and to free-up other stock for Auckland commuter trains.
At the time, it was said there was no company with the expertise or experience to manufacture locomotives in New Zealand.
Yesterday, the rail and Maritime Transport Union used an open day at Hutt Rail Workshops to urge KiwiRail to back the New Zealand workforce and "buy kiwi made" in its locomotive and wage procurement programme.
Secretary Wayne Butson said rail workers in New Zealand wanted KiwiRail to commit to building new locomotives and wagons in this country rather than upgrading older stock from overseas.
