At European and national levels, discussions are ongoing on the development of financingsystems to support single wagon traffic. ERFA recognizes that financial support for singlewagon traffic can play an important role in achieving the modal shift targets set out in theEuropean Sustainable and Smart Mobility Strategy, but such aid must focus on last mileservices and not distort competition with other rail freight services.Firstly, if must be recognized that any financial support directly granted to rail freightundertakings has the potential to distort competition in the rail freight market. It is thereforeessential that where financial aid is granted to SWT (Single Wagon Traffic), these activities ofthe operator – which mostly will be the national incumbent - in receipt of financial aid mustbe separated organizationally and financially from other rail freight services such as block trainoperations. Competition in block train segments between incumbents and challengers couldotherwise be distorted.Secondly financial aid should be limited as much as possible and should be targeted wherethere is a sectoral benefit which incentivizes volume growth and potential for modal shift fromroad to rail. Thirdly any financial aid system should be stimulating efficiencies and, if needed,facilitate possible cooperation between Railway Undertakings to avoid redundancies. It shoulddefinitely not support a particular inefficient operational practices. Fourth, direct aid tospecific rail freight undertakings should be avoided and any aid mechanism should be nondiscriminatory, which means that definitions of relevant concepts (such as sidings, shuntingtracks) should not advantage a particular market participant. The focus of aid should be placedon financially supporting costs of the last mile services which should be offered nondiscriminatorily to all market players. (....)