The first wagon in a massive order for York's Thrall Europa was handed over today, marking the start of a £50m investment and the creation of 70 new jobs.

Deliveries of 845 state-of-the-art coal hoppers begin early in the New Year as part of a contract set to end in Spring 2003.

Although this is currently the only major contract the company are working on, negotiations are on-going with Railtrack to manufacture freight vehicles.

More than 1,400 wagons have already been delivered by the Holgate Business Park firm to English Welsh and Scottish (EWS) as part of a five-year, 2,500-vehicle deal.

And the latest order is seen as a "big vote of confidence for the railway industry" at the former site of ABB Carriageworks.

"We are confident that there is a future in rail freight," said vice-president of operations for the UK and Europe, Jim MacFadyen.

"These vehicles have a lifespan of up to 40 years, so this is a big investment in the industry.

"We have work here for the next few years, as well as in a number of small countries. If there is a future in the industry, then there is a future for our company."

The £60,000 wagons, of which ten will be delivered each week from January, are 18m long and weigh 102 tonnes when fully loaded.

The order is the largest for one specific type of railway wagon since 1976, and the vehicles can travel at 75mph with a 100 per cent greater carrying capacity than existing coal wagons.

"These hoppers show an enormous commitment to the future of coal in this country," said Andy Lickford, spokemsan for EWS.

"This is the future of coal transportation, the vehicles can carry more coal on the same length of train.

"We are very happy with the vehicles we have received so far from Thrall as part of the five-year contract."

A spokesman for Railtrack confirmed the company was in consultation with Thrall Europa over an order for freight wagons, but refused to give any further details of the proposed order.

dan.rutstein@ycp.co.uk