A Study on Main Factor for Improving the Mongolian Railway Industry: Using the Analytic Hierarchy Process(AHP)

A Study on Main Factor for Improving the Mongolian Railway Industry: Using the Analytic Hierarchy Process(AHP)

This study evaluated the operation of Mongolia"s railway sector, and the factors necessary for further improvement were studied. The research methodology used AHP (Analytic Hierarchy Process) and analyzed the factors affecting railway operation based on previous research. Four major factors were reviewed as major variables: logistics, infrastructure, operation, and cost, and 12 sub-factors related to these were selected. As a result of the research, effective cost management is an essential factor for the railway industry of Mongolia, and it is necessary to create competitiveness because it reduces costs and improves pricing policy. The cost criterion emphasizes ‘Operation cost’ as paramount(global weight 0.129, rank 1), while ‘Transportation cost’ and ‘Maintenance cost’ follow, holding ranks 5 and 4, respectively. The infrastructure category highlights ‘Transshipment and handling facilities’ as critical factors (global weight 0.120, rank 2). Followed closely by ‘Railway Infrastructure’ is showed (global weight 0.092, rank 3). Improvement of the railway infrastructure was found to be the following sub-important thing, and it was proved that the railway infrastructure"s age and Mongolia"s rolling stock affect the operation"s profitability. For development, it is necessary to upgrade and modernize the infrastructure of the railways so that trains can be safe, fast, and reliable. Within the logistical criterion, ‘Multi-modal transportation connectivity’ and ‘Possibility of creating and developing rail’ are significant, with global weights of 0.064 and 0.075, respectively, and ranked 10th and 8th. Integrating transport links into a single rail, road, air, and sea transport network will allow the integrated cargo logistics to move smoothly and reduce transit time. Finally, operational efficiencies through streamlined processes such as customs clearance and shipping improve service availability and customer satisfaction and reduce delays and errors.

This study evaluated the operation of Mongolia"s railway sector, and the factors necessary for further improvement were studied. The research methodology used AHP (Analytic Hierarchy Process) and analyzed the factors affecting railway operation based on previous research. Four major factors were reviewed as major variables: logistics, infrastructure, operation, and cost, and 12 sub-factors related to these were selected. As a result of the research, effective cost management is an essential factor for the railway industry of Mongolia, and it is necessary to create competitiveness because it reduces costs and improves pricing policy. The cost criterion emphasizes ‘Operation cost’ as paramount(global weight 0.129, rank 1), while ‘Transportation cost’ and ‘Maintenance cost’ follow, holding ranks 5 and 4, respectively. The infrastructure category highlights ‘Transshipment and handling facilities’ as critical factors (global weight 0.120, rank 2). Followed closely by ‘Railway Infrastructure’ is showed (global weight 0.092, rank 3). Improvement of the railway infrastructure was found to be the following sub-important thing, and it was proved that the railway infrastructure"s age and Mongolia"s rolling stock affect the operation"s profitability. For development, it is necessary to upgrade and modernize the infrastructure of the railways so that trains can be safe, fast, and reliable. Within the logistical criterion, ‘Multi-modal transportation connectivity’ and ‘Possibility of creating and developing rail’ are significant, with global weights of 0.064 and 0.075, respectively, and ranked 10th and 8th. Integrating transport links into a single rail, road, air, and sea transport network will allow the integrated cargo logistics to move smoothly and reduce transit time. Finally, operational efficiencies through streamlined processes such as customs clearance and shipping improve service availability and customer satisfaction and reduce delays and errors.