An increasing of the passenger travel demand in Addis Ababa city results to invest a hugernbudget for construction of the Addis Ababa railway infrastructure to balance the need forrnthe transportation demand. However, constructing the railway infrastructure only will notrnsatisfy the passenger demand rather it also needs a better management system for efficientrnutilization of railway capacity. But the railway capacity in Addis Ababa light rail transitrnhas utilization gaps like, the same numbers of trains are scheduled in the whole day timernwhere it varies in actual condition so called the peak and off-peak hour demand. Inrnaddition, there is train headway time irregularities from the OCC operational schedule ofrnthe shared corridor of railway network that can affect to the railway capacity utilization.rnTherefore, different literatures have been reviewed on solving of such problems and it isrndetermined that the UIC-cod 405R is an easy and effective way of calculating the capacityrnconsumption with the help of AnyLogic software in consideration of the railwayrnnetworking effects. It follows on from work that was carried out to forecast rail transportrndemand for AA LRT in 2047. The capacity utilization rate is stated as the ratio betweenrndemand for railway services and the available capacity of the infrastructure. The findingsrnon this thesis show that the capacity utilization rate varies according to the demand-basedrnschedules. Knowing the demand for the railway line is suitable to know the headway timernand capacity for the current operational systems too. Therefore, the schedules at the periodsrnof day should be varied such that a peak hour and off-peak hourâ€™s headway time andrncapacity schedules can have.rnThe quality of service of railway line varies according to the capacity utilization rate wherernthe maximum utilization rate of this line reaches at the year of 2036. At this period,rnmeasures like changing railway signaling operation and or changing the train unit to morernthan two unites can be a solution for theoretical and practical capacity extension from itsrncurrent maximum value.