The present deliverable presents a general overview of the European rail freight system in terms of:Demand:Where the general characteristics and trends on freight transportation market are analysed, obtaining among other conclusions that more transport of processed high-valued goods with low density and higher space requirement is happening in contrast to transport of bulk cargo and heavy goods.SupplyWhere the freight railway system and its performance are analysed, being intermodal transportation and unit trains the business segments with major interest. The current wagon fleet characteristics together with their performance are discussed to produce guidelines for VEL-Wagon concepts, among which the multipurpose applications. InfrastructureGeneral overview of railway infrastructure characteristics paying especial attention to loading gauges and axle loads.Finally it presents rough concept definitions of VEL-Wagon based on partners evaluation.