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Evaluating Productivity and Efficiency Contradictions of Metrorail South Africa

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  • Jeremiah Kau Makokoane

    (The Southern Africa Institute of Management Scientists, Independent researcher, South Africa)

Abstract

This study focusses on the efficiencies of subunits of South Africa’s Metrorail services. Over the period 2015/16 to 2018/19 Metrorail implemented its corporate plan to improve operations efficiency. This study applies the Malmquist Productivity Index (MPI) to compare the performance efficiency of the three Metrorail subunits over the study period. The results indicate the variation of productivity levels amongst Metrorail subunits. Furthermore, output-oriented scale efficiency scores are used to measure the optimal scale situation of each Metrorail subunit. It is concluded that largely the KwaZulu-Natal subunit seems to be more efficient when compared to the other two subunits over the full period under analysis. Therefore, in the cognition of the relatively large size of the Gauteng and Western Cape subunits and their concomitant inefficiency levels, the findings suggest that Metrorail management should focus on correcting their inefficiencies while also considering alteration of their size to optimise production.

Suggested Citation

  • Jeremiah Kau Makokoane, 2020. "Evaluating Productivity and Efficiency Contradictions of Metrorail South Africa," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 6(3), pages 7-19, March.
    • Handle: RePEc:mgs:ijmsba:v:6:y:2020:i:3:p:7-19
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.63.1001
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    References listed on IDEAS

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    More about this item

    Keywords

    South Africa; Metrorail; Efficiency; Malmquist Productivity Index;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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