ASSESSMENT OF THE EFFICIENCY OF FIXED ASSETS UTILIZATION IN RAILWAY ENTERPRISES: EVIDENCE FROM UZBEKISTAN

Abstract

This paper assesses the efficiency of fixed asset utilization in the railway transport sector of
Uzbekistan during 2014–2024, using the case of “Uzbekistan Railways” JSC. Based on the methodological
framework proposed by the International Transport Forum (ITF/OECD) for measuring railway efficiency, the
study combines financial indicators, including the operating ratio, gross profitability and depreciation intensity,
with physical asset utilization indicators, such as locomotive and wagon productivity, turnaround time, traffic
density and cost-structure analysis.
The results reveal a specific imbalance: while physical productivity indicators of rolling stock improved
steadily, with locomotive productivity increasing by 19.5 percent and wagon productivity by 31.0 percent during
2014–2023, the financial efficiency of freight operations showed a declining trend. The operating ratio has
persistently exceeded 100 percent since 2019, while the gross profitability of freight transport decreased from
about 53.0 percent in 2020 to nearly zero in 2022–2023.
This trend is explained by a cost structure in which energy and labour costs increased faster than revenue,
reflecting the ageing of the rolling stock fleet and growing maintenance requirements. The paper argues that
asset utilization efficiency in railways cannot be assessed using physical indicators alone. Therefore, it proposes
a combined financial and operational monitoring framework for railway enterprises in transition economies.