14 October 2022

€ 450 MILLION FRENCH FUNDING FOR SINGLE WAGONLOAD

The European Commission has authorised, under EU State aid rules, a French scheme amounting to €450 million to support Single wagonload services. The scheme, applicable until 31 December 2025, aims to promote the shift of freight transport from road to rail by encouraging single wagonload transport.

Single Wagonload transport allows the sending and receiving of small volumes of goods which would otherwise not be transported by rail but by road. The aid will take the form of direct grants to compensate rail freight companies for the cost difference between road and rail transport. The scheme will be open to railway undertakings active in the single wagonload sector.

The Commission has assessed the measure under EU state aid rules and concluded that the measure is necessary and proportionate to promote rail transport and will benefit both the environment and mobility. Moreover, the aid constitutes an effective incentive since, in the absence of public funding, the beneficiaries would not engage in wagonload activities. On this basis, the Commission concluded that the aid is in line with EU state aid rules. More information is available on the website of the Commission's Directorate-General for Competition in the State Aid Register under the reference SA.62529, once any confidentiality issues have been resolved.

Source: European Commission