A Bus route-efficiency analysis using stochastic frontier model

Abstract

This research analyzes the efficiency of bus routes in Kandy, Sri Lanka, utilizing a Stochastic Frontier Model (SFM). The primary objective is to identify inefficiencies and provide recommendations for optimizing bus operations. The data collection was done through collecting relevant documents maintained at bus depots. These documents included records of revenue, number of buses, distance covered, fare structure, load factors, route length, and bus capacities. The analysis reveals that over 60% of routes cluster around a moderate efficiency range, indicating potential for improvement. Notably, a significant number of routes (potentially 24 or more) achieve efficiency scores exceeding 90%, serving as exemplars of efficiency. Conversely, some routes score as low as 10%, necessitating further investigation to address inefficiencies. The SFM results, with an R-squared value of 0.84, indicate the model explains approximately 84% of the variation in revenue per kilometer. Key recommendations include optimizing bus schedules to increase load factors, adjusting trip lengths to balance operational costs and passenger demand, and re-evaluating bus allocations to ensure resource efficiency. These findings provide actionable insights for enhancing the efficiency of bus routes in Kandy, contributing to improved public transportation services and resource allocation.