Evaluating the Relative Efficiency of Railway Operations Using Data Envelopment Analysis

ABSTRACT

Data envelopment analysis (DEA) is a non-parametric mathematical programming technique used to measure the relative efficiency of the production organization's operations. This paper presents the theoretical measures of efficiency, along with Tofallis’ profile analysis. The DEA model is applied to evaluate the relative efficiency of railway operations of 23 UIC (Union Internationale des Chemins de fer) countries, based on data obtained from the International Union of Railways (UIC) publications. In this paper, the railway service process is considered as a production process using three inputs (capital, equipment, and labor) and generating two outputs (passenger services and freight services). The application problem is solved using SAS/IML software. The model results are analyzed and evaluated in terms of their relative operational performance efficiency. The model results facilitate an organization’s decision-making by providing valuable information.