AT a time when Britain's railways are in a state of chaos, the Thrall Europa order is a much-needed vote of confidence in the industry's future.

Today the first of 845 coal wagons rolled off the York production line. The deal is a major boost to the Holgate Road workforce.

The economic benefits to the wider city are undeniable. Seventy new jobs have been created. Just as importantly these are skilled manufacturing jobs.

While York's service and tourism sectors have boomed in recent years, manufacturing has shrunk. This is a cause for concern. The city must create a wide range of employment opportunities if it is to withstand volatile global market forces.

Thrall Europa's success is essential to York for more than bald economic reasons, of course. It now carries the standard that proclaims this to be a railway city.

Thrall's arrival was crucial to the turnaround in the fortunes of York. After the bitter loss of ABB, Thrall rescued our railway heritage and put a spring back in the city's step. Prosperity soon returned.

In this sense, the carriage builder's hopes are welded to those of York itself. And we must be realistic. One order, however impressive, does not guarantee prosperity - ABB taught us that painful lesson.

City leaders will be as anxious as Thrall's workers for news of the next order. That wait is made worse by the knowledge that Britain's rail industry is in a state of limbo until new franchises are awarded to the train operators. This is a disturbing echo of ABB's problems: its orders dried up amid the uncertainty of rail privatisation.

Fortunately, Thrall has high hopes of landing a deal with Railtrack. It will also be competing hard to land orders from Europe.

And when the current uncertainty ends, the British market will open up again. That will be good for Thrall Europa - and for York's peace of mind.