LONDON: The British government faced fresh humiliation over a botched competition to run the country’s west coast rail service on Monday, when it asked Virgin to continue operating the line on an interim basis, only weeks after choosing a rival company.
A 13-year franchise deal, due to commence in December, had originally been granted to FirstGroup ahead of the incumbent Virgin Trains, but the government was forced to pull the award earlier this month when it discovered serious flaws in the way it had run the process.
The Department of Transport is now asking Virgin to continue operating the service, which runs from London to Scotland, for a further nine to 13 months from December, while it runs a competition for an interim agreement, it said on Monday.
“The cancelation of the InterCity West Coast franchise is deeply regrettable and I apologize to the bidders involved and the taxpayer who have a right to expect better,” said Transport Secretary Patrick McLoughlin.
“My priority now is to fix the problem and the first step is to take urgent action to ensure that on the 9 December services continue to run to the same standard and passengers are not affected.”
FirstGroup, which had made a 5.5 billion pounds ($8.9 billion) bid to run the franchise, has seen its shares slide over 20 percent since the deal was scrapped.
Virgin Trains — a venture between billionaire businessman Richard Branson’s Virgin Group and Stagecoach — had offered 4.8 billion pounds to continue with the franchise, and had mounted a legal challenge when it lost, claiming the winning bid was “ridiculous.”
In the process of preparing for the legal challenge, the government uncovered mistakes related to the way it had calculated risk, leading to an embarrassing u-turn on the award of the franchise, the suspension of three employees, and the freezing of other ongoing franchise competitions.
Following the debacle, the government has ordered two independent reviews. One will look into what happened with the west coast competition and is expected to report by the end of this month, while the other will look at the wider issue of rail franchising and report in December.
Virgin welcomed the government move on Monday. A spokesman said: “Customers have made it clear that they want Virgin to continue. We are delighted to have the chance to continue delivering our excellent service.”
The affair is humiliating for the ruling Conservative Party, which began its program of rail privatizations in the 1990s, a project that has been dogged by fatal accidents, financial crises and political infighting.
In 2009, the government was forced to re-nationalize the east coast line after contracts with GNER and National Express collapsed.
“RMT will continue to fight for public ownership of the railways, a position supported by the vast majority of the British people,” transport union the RMT said on Monday.
“This short term political fix will not detract from the call for rail to be run as a public service free from the chaos and greed of privatization.”
Virgin to run rail line while UK fixes bidding fiasco
Virgin to run rail line while UK fixes bidding fiasco
Jordan’s industry fuels 39% of Q2 GDP growth
JEDDAH: Jordan’s industrial sector emerged as a major contributor to economic performance in 2025, accounting for 39 percent of gross domestic product growth in the second quarter and 92 percent of national exports.
Manufactured exports increased 8.9 percent year on year during the first nine months of 2025, reaching 6.4 billion Jordanian dinars ($9 billion), driven by stronger external demand. The expansion aligns with the country’s Economic Modernization Vision, which aims to position the country as a regional hub for high-value industrial exports, the Jordan News Agency, known as Petra, quoted the Jordan Chamber of Industry President Fathi Jaghbir as saying.
Export growth was broad-based, with eight of 10 industrial subsectors posting gains. Food manufacturing, construction materials, packaging, and engineering industries led performance, supported by expanded market access across Europe, Arab countries, and Africa.
In 2025, Jordanian industrial products reached more than 144 export destinations, including emerging Asian and African markets such as Ethiopia, Djibouti, Thailand, the Philippines, and Pakistan. Arab countries accounted for 42 percent of industrial exports, with Saudi Arabia remaining the largest market at 955 million dinars.
Exports to Syria rose sharply to nearly 174 million dinars, while shipments to Iraq and Lebanon totaled approximately 745 million dinars. Demand from advanced markets also strengthened, with exports to India reaching 859 million dinars and Italy about 141 million dinars.
Industrial output also showed steady improvement. The industrial production index rose 1.47 percent during the first nine months of 2025, led by construction industries at 2.7 percent, packaging at 2.3 percent, and food and livestock-related industries at 1.7 percent.
Employment gains accompanied the sector’s expansion, with more than 6,000 net new manufacturing jobs created during the period, lifting total industrial employment to approximately 270,000 workers. Nearly half of the new jobs were generated in food manufacturing, reflecting export-driven growth.
Jaghbir said industrial exports remain among the economy’s highest value-added activities, noting that every dinar invested generates an estimated 2.17 dinars through employment, logistics, finance, and supply-chain linkages. The sector also plays a critical role in narrowing the trade deficit and supporting macroeconomic stability.
Investment activity accelerated across several subsectors in 2025, including food processing, chemicals, pharmaceuticals, mining, textiles, and leather, as manufacturers expanded capacity and upgraded production lines to meet rising demand.
Jaghbir attributed part of the sector’s momentum to government measures aimed at strengthening competitiveness and improving the business environment. Key steps included freezing reductions in customs duties for selected industries, maintaining exemptions for production inputs, reinstating tariffs on goods with local alternatives, and imposing a 16 percent customs duty on postal parcels to support domestic producers.
Additional incentives in industrial cities and broader structural reforms were also cited as improving the investment climate, reducing operational burdens, and balancing consumer needs with protection of local industries.
