The railway industry in Iran is one of the country's oldest transport sectors. Over recent decades, efforts have been made to improve its infrastructure, such as connecting major freight hubs to the national rail network, shifting freight transport from road to rail. However, despite its key role in the national logistics system, limited progress has been achieved in modernizing the rolling stock and implementing precise and mechanized loading/unloading operations. This has resulted in resource inefficiencies, loss of freight, and declining confidence among cargo owners in the railway system. Additionally, from an environmental standpoint, inadequate waste and wastewater treatment systems have raised concerns about long-term ecological impacts.
Circular economy principles seek to balance economic growth with environmental sustainability by reintegrating recycled materials into production cycles and minimizing ecological degradation. In this study, a network Data Envelopment Analysis (NDEA) model incorporating a centralized structure and cooperative game theory is developed to assess the circular economy performance of railway maintenance companies. The proposed model comprises two interconnected subsystems: the production subsystem, which includes rolling stock washing and repair, and the treatment subsystem, responsible for processing the wastewater and industrial waste produced by the first subsystem. By applying a cooperative game approach, the model enables efficiency evaluation of both subsystems under a unified framework.
The proposed methodology is applied to the performance evaluation of Iranian railway maintenance companies during the period 2020–2024 (1399–1403 in the Iranian calendar). The results help identify efficient and inefficient units, offering strategic insights to enhance overall system performance toward best-practice benchmarks.