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The Efficiency of Railways Specialized in Transporting Iron Ore and Pellets

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  • Renata Guimarães de Oliveira Fontan
  • Rodrigo Alvarenga Rosa
  • Adonai José Lacruz

Abstract

Objective: the objective is to compare the relative efficiency of the railways specialized in transporting iron ore (MFe) and pellets (PLMFe), which are part of the assets of mining companies and pellet plants considering the 2016 scenario. Methods: the methods used were the data envelopment analysis (DEA) technique, with the application of the output-oriented constant returns scale (CRS) model; the initial combinatorial multicriteria method for choosing the input variables; and Tobit regression as a validation strategy for the DEA model. Results: of the twelve railways evaluated, three railways were identified as efficient: Estrada de Ferro Carajás, Fortescue, and Mount Newman. Conclusions: the applied model was considered a good method to evaluate the efficiency of railways specialized in transporting MFe and PLMFe, as it determined the efficiency of each railway, suggesting the necessary increase in the output variable or adjustments in the input variables so that the railways reach the efficiency frontier. With that, companies can use the results of this study to guide future improvements to make their railways more efficient or maintain them on the frontier of efficiency.

Suggested Citation

  • Renata Guimarães de Oliveira Fontan & Rodrigo Alvarenga Rosa & Adonai José Lacruz, 2022. "The Efficiency of Railways Specialized in Transporting Iron Ore and Pellets," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(1), pages 200284-2002.
  • Handle: RePEc:abg:anprac:v:26:y:2022:i:1:1493
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