Evaluating the Performance of Railway Transportation Companies Using Multi-Criteria Decision-Making Methods

Abstract

The purpose of performance evaluation is to generate measurable data on an organization's performance, with the goal of assisting managerial decision-making and enhancing overall performance. In this study, the key performance indicators (KPIs) for railway transportation companies are identified based on expert opinions and previous frameworks. The operational performance of various railway freight transport companies was evaluated using multi-criteria decision-making methods (MCDM). Among the MCDM approaches, the Evaluation Based on Distance from Average Solution (EDAS) method was applied as the main method. In addition to the EDAS method, alternative MCDM methods such as TOPSIS, PROMETHEE II, and COPRAS were used to highlight potential deviations when compared to the results obtained with the EDAS method. Based on the research findings, three out of the seven KPIs, namely safety, have the highest weight at 38%, followed by punctuality at 19%, and journey time at 12%. Subsequently, companies were ranked according to their performance based on all KPIs. Furthermore, a sensitivity analysis was conducted to demonstrate how changes in the relative weights of KPIs can affect the results.