Exclusivivityy agreement for what?
Umm, for running services. What else could it mean?
From a report by the Competition and Markets Authority in 2016:
In the post-privatisation period, on-rail competition was limited by a policy
referred to as Moderation of Competition. Under this policy, each track access
agreement specified those routes on which Network Rail (and previously
Railtrack) was prohibited from granting access rights to potential competitors
of the franchised TOCs.107 The rationale behind this approach was to ensure
that OAOs could not undermine the viability of the franchise system by ‘cherry
picking’ profitable services. However, in 2004, ORR indicated that it would
only approve Moderation of Competition clauses in exceptional circumstances
(ie where investments would not otherwise occur). In November 2010, ORR
stated that such protection would no longer be approved.
Competition between franchised TOCs on overlapping and parallel
franchises appears to be most intense where the franchises are loosely
specified or where significant changes in franchises and/or access rights
were permitted.
London Midland increased its service frequency on services from
London to Birmingham and North West England through changes to
its access rights and enhancements to its rolling stock to allow
110mph running. The new rolling stock also offered tables and power
sockets throughout. Competition from Virgin Trains and Chiltern
Railways was one driver for the enhancements
As highlighted in paragraphs 3.47 and 4.34, competition from Virgin Trains on
the West Coast main line and from the parallel Chiltern Railways franchise
was one driver in London Midland investing in new capacity in order to grow
its revenue and to limit the opportunity for scarce paths to be consumed by
competitors (which would, in turn, limit its ability to expand in the future).303
The timing of London Midland’s proposal to increase capacity coincided with
the end of Virgin Trains’ moderation of competition clause in 2012 and was
only made possible by the lifting of the restrictions.