Efficiency assessment of the Mongolian railway industry using data envelopment analysis: a comparative analysis with CAREC railwasy

This study aimed to assess the efficiency of the railway industry in Central Asia Regional Economic Cooperation (CAREC) 10 member countries. Using data from 2016o t2018, we set the ten CAREC countries as DMUs and applied the DEA (Data Envelopment Analysis) method to analyze the relative efficiency of each country's railway industry. Input factors considered were railway extension length, number of workers, freight cars, and expenses. Output factors included revenue and total cargo volume. The results revealed that the China Railway Corporation and the Afghanistan Railway Authority consistently demonstrated efficiency overthree years, with an efficiency value of 1(100%). Kazakhstan and Uzbekistan also achieved 100% efficiency for one year each. While the Mongolian railway industry showed a slightly higher efficiency index, it was less efficient thanChina, Afghanistan, Kazakhstan, and Uzbekistan. Findngs reveal that the Mongolian railway sector faces significant challenges due to outdated infrastructure, rolling stock, and equipment, which hinders profitability. According to the results of DEA's analysis, it is helpful for Mongolia tochoose optimal benchmarking targets to reduce operating costs, improve infrastructure and facilities, and optimize operations to enhance railway efficiency.