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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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      "text": "The sharing of cost and revenue outperformance and underperformance (against a baseline trajectory) between Network Rail and train operators at a local/route level is a potentially fundamental element of rail industry reform. It provides for better alignment of incentives and encourages closer working between Network Rail and train operators, which should improve efficiency, value for money for customer/passenger and taxpayer, and other industry outcomes. There is a broad acceptance of the conceptual benefits of 'sharing' but more work is required to examine the practical implementation and operational issues",
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      "text": "The sharing of cost and revenue outperformance and underperformance (against a baseline trajectory) between Network Rail and train operators at a local/route level is a potentially fundamental element of rail industry reform",
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      "text": "The need to improve alignment of incentives across the rail industry was further highlighted in the Secretary of State's statement to parliament on 7 December 2010",
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      "text": "ORR, ATOC and Network Rail (\"NR\") jointly commissioned L.E.K. Consulting LLP (\"L.E.K.\") to examine how a number of different options for cost and revenue sharing could work in practice",
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      "text": "L.E.K.'s work was carried out over a six week period from 12 November to 23 December 2010. This included extensive industry consultation and detailed examination of each of the options under consideration. L.E.K. submitted its draft final report on 23 December. This final version of L.E.K.'s report incorporates stakeholders' comments on the draft final report",
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      "text": "L.E.K. has carried out a separate, but related, study for the McNulty Rail VfM review. This separate study involved development and evaluation of alternative railway structures for cost reduction. Implementation of any cost and revenue sharing mechanisms would need to be coordinated with implementation of the alternative railway structures. L.E.K. submitted its draft final report for the alternative railway structures project on 28 January 2011. Readers should refer to that report for details of our work for the Rail VfM team",
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