Analyzing the National Logistics System through Integrated and Efficient Logistics Networks: a Case Study of Container Shipping Connectivity in Indonesia

Indonesia, as a maritime country should be able to integrate inter-island into a coherent whole and sovereign country. In order to face Indonesia government’s plan with respect to the international hub ports issue, whereby Indonesia should have its own international hub port in the future, so that it no longer depends on neighbouring country ports. Hence, this study is required to analyse the connectivity between main domestic ports and international hub ports in Indonesia, according to the National Logistics System. We apply a heuristics approach by combining the Feeder Network Design Problem (FNDP) and Multiple Commodities Problem to create the optimum routes as well as to allocate the cargo by minimizing the total transportation costs. Two scenarios are applied in the calculation due to the closer distance between Kuala Tanjung as one of the proposed international hub ports and Belawan as one of the main domestic ports. The first scenario, we analyse all international containers of six main domestic ports (with Belawan), while the second scenario does not consider the international containers in Belawan (without Belawan). It means that the second scenario only considers to the five remaining main domestic ports, excluding Belawan, because it is possible to deliver Belawan’s international containers to Kuala Tanjung directly by using land transport or short-sea shipping. As the results, we obtain two optimum routes for each scenario that consist of direct and indirect loop. A direct loop connects between hub and main domestic port directly, whereas an indirect loop calls at multiple main domestic ports. The results of the first scenario “with Belawan”, one indirect loop (one integrated route) has the total shipping costs of USD 76.9 million by using the maximum ship capacity () within range 56,313 to 72,447 TEUs. Meanwhile, two indirect loops (west and east route) produce the lower total costs of USD 64.94 million by using the at least of 72,448 TEUs. On the other hand, the results of the second scenario “without Belawan” are combined routes and two indirect routes. The combined routes consist of one direct route and one indirect route. It produces the total costs of USD 51.6 million by using the is within range 56,313 – 80,446 TEUs. Meanwhile, two indirect routes gain the lower total costs of USD 50 million by using the value of at least 80,447 TEUs. Overall, if the larger ship capacity used on these routes, then each route will have the fewer legs and shorter distances. Consequently, it will have the lower total shipping costs due to the fewer number of ships required to serve this kind of routes.