Efficiency of the Brazilian rail transport system: an application of Data Envelopment Analysis
DOI:
https://doi.org/10.21680/2176-9036.2022v14n1ID24643Keywords:
efficiency, urban rail transport, DEA.Abstract
Purpose: To analyze the technical efficiency of Brazilian railway companies.
Methodology: The technical efficiency of Brazilian railway companies was analyzed through Data Envelopment Analysis (DEA), using the window analysis approach, and considering the Variable Returns of Scale model. The study examined eight companies during a five-year period, which totalizes 90% of the railway passengers in that timespan. The main inputs and outputs of railway systems referred in the international literature were used as variables.
Results: Only railway companies classified as large can be considered technically efficient. Among them, São Paulo’s metro system was the only one that remained efficient throughout the years analyzed. Medium-sized companies were inefficient in all years of the sample, showing the necessity to reduce their inputs by an average of 19% in order to become technically efficient. The inclusion of financial variable as an input did not significantly change the efficiency indexes assessed. The study reveals the prevalence of increasing returns to scale in the Brazilian railway system.
Contributions of the Study: This study identifies potential improvements for the companies considered inefficient and reveals they are medium-sized and state-owned, with high-cost financing from government resources. It is also a benchmark for further research on the topic, given the importance of identifying the effect of funding transport operations with government resources on companies’ efficiency. In this context, considering this study identifies the prevalence of increasing returns to scale in the Brazilian railway system, it contributes to the analysis of public policies associated with population access to this means of transportation, as constant returns to scale suggests that production increase, which has the number of carried passengers as the main variable, can generate benefits for the companies in terms of efficiency.
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