Efficient urban, suburban and regional transport systems are critical elements of the sustainable development of urban areas, where some 80% of Europe’s citizens live. Urban public transport and especially rail systems have numerous advantages, which shall never be shared by private car transport in terms of e.g. speed, capacity, safety, environmental friendliness, energy savings and urban space consumption. At the same time, car ownership and car use is increasing every day due to a great variety of attractive technical innovations which are easy to standardise and to implement on private vehicles and on roads or streets in comparison to rail systems. Local public transport systems and especially (sub)urban rail systems are indeed far more complex technically than road systems and they involve for their management many more (public) stakeholders than private or commercial vehicles traffic management. In addition, local public transport services are operated under public transport contracts following public service requirements, which represent a heavy financial burden on local authorities for public transport services financing and public transport systems –and especially rail- funding as long as negative external costs of motorised road vehicle are not internalised. As a consequence public transport and (sub)urban rail will not be able to compete with private cars without an important improvement of public transport attractiveness, and a reduction in investment and operating costs. This implies an important investment in local rail and in urban mobility research, a strong support from public authorities, and an agreement between local/regional/national public authorities, public transport and especially rail operators, and railway manufacturers to coordinate across Europe for technical harmonisation of products and services where it allows to bring European added value. This is the major challenge of WP3. At the same time, focusing on rail, the European manufacturing industry is a world leader for urban rail systems (metro, tramway and light rail) and has achieved significant innovation for the benefit of the customer (e.g. low floor tram), but has to remain competitive for most promising markets in Europe and outside Europe, especially in China and other Asian markets.