Evaluating Productivity and Efficiency Contradictions of Metrorail 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 optimize production.