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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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  "authorName": "L.E.K.",
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  "notes": "The slide outlines the regulatory and economic framework for rail freight operators in the UK.",
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      "text": "After a long period of decline, the amount of freight carried by the railway started to grow in the mid-1990s. Several factors have driven this growth, including increasing road congestion and growth in certain sectors such as larger distance movements of imported coal, which rail is particularly well placed to carry. Rail's quality of service has also improved, driven by competition and investment.",
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      "text": "Competition between road and rail has always been strong, and competition within the rail industry between different operators has intensified. The position is further complicated by the nature of the freight market, where service providers need flexibility to respond to customer demand, which can vary at short notice. This means that NR's timetable planning must allocate more space for freight than is actually used on a day-to-day basis. Rail is most competitive for high-volume flows over longer distances, and tends to become less attractive as volume and distance decline.",
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      "text": "There are currently four major FOCs: DB Schenker, Freightliner, GB Railfreight and Direct Rail Services. All FOCs are open access users of the network. FOCs pay variable access charges but not fixed charges. EU legislation requires access charges to be based on short run marginal cost plus a mark-up value where the market can bear it. In the case of freight, the mark-up only applies to the coal and nuclear markets and is applied to the variable access charge. FOCs also pay a coal spillage charge, a capacity charge and EC4T. FOCs receive flow specific freight grants from the Government (£21m in 2008/09).",
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      "kind": "source-note",
      "text": "Source: DfT, “Delivering a Sustainable Railway”; ORR, Periodic Review 2008; ORR, National Rail Trends 2009-10 Yearbook. ORR/ATOC/Network Rail. Rail industry cost and revenue sharing.",
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      "text": "Freight train operators are open access users of the network and pay only variable charges",
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