An Analysis of the Effects on Rail Operational Efficiency Due to a Merger between Brazilian Rail Companies: The Case of RUMO-ALL

Abstract

Mergers between companies are motivated by synergy effects that can improve profitability. On February 11, 2015, the Administrative Council for Economic Defense (Cade) approved, the merger between America Latina Logística (ALL), the largest railroad transport company in Brazil and Rumo Logistics (RUMO), an operator with national impact with restrictions, and formed a new entity RUMO-ALL. The approval of this merger suggested that there could be an increase in operational efficiency without compromising the competition. In this work, the operational efficiency of RUMO-ALL is evaluated using Data Envelopment Analysis (DEA) models for the return of adequate scale. Statistical tests of structural break are performed in order to understand if there are an ex-post merger effects on the operational efficiency after the expansion of the service. The results indicate that the rail service after the merger is efficient, but with marginal reduction of production with an increase of input, which is expected according to neoclassical economic theory for monopolies.

Publication DOI: https://doi.org/10.3390/su12124827
Divisions: College of Engineering & Physical Sciences > School of Infrastructure and Sustainable Engineering > Engineering Systems and Supply Chain Management
College of Engineering & Physical Sciences
Additional Information: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
Uncontrolled Keywords: Brazil,DEA,Mergers,Operational efficiency,Rail,Geography, Planning and Development,Renewable Energy, Sustainability and the Environment,Management, Monitoring, Policy and Law
Publication ISSN: 2071-1050
Last Modified: 18 Mar 2024 18:50
Date Deposited: 15 Jun 2020 07:59
Full Text Link:
Related URLs: https://www.mdp ... 1050/12/12/4827 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2020-06-12
Accepted Date: 2020-06-07
Authors: Ferreira da Silva, Francisco Gildemir
Magalhães de Oliveira, Renata Lúcia
Marinov, Marin (ORCID Profile 0000-0003-1449-7436)

Download

[img]

Version: Published Version

License: Creative Commons Attribution

| Preview

Export / Share Citation


Statistics

Additional statistics for this record