Developing Inland Logistics Hub in North Sulawesi Province to Reduce Transport Cost to/from Bitung Port

Indonesia has planned to develop 24 main ports to support inter-island maritime highway concept. It has envisioned to balancing the trading activity between the eastern and western part of Indonesia. Nevertheless, trade problem in Indonesia also is caused by inefficient hinterland transportation to/from the port, thus increase transport cost. Bitung Port was the focus of this study by its international hub port role in the future. It also experiences the high transportation cost in the hinterland. This research focused on developing inland logistics hub in North Sulawesi Province, the hinterland of Bitung Port. Discrete cost simulation method was used to analyze the location and cost reduction after logistics hub applied. It was intended to overview the highest transport cost saving from each node when it was implemented to be logistics hub. There are 15 candidates, which represent the district in North Sulawesi Province. The result indicated that Airmadidi was the most optimum location for a logistics hub. It can save € 20/ton from other regional nodes. Social Cost Benefit Analysis was used to assess the economic feasibility of the project. This project is considered as an economically feasible by result IRR of 9%, BCR of 2.3, and NPV of € 38,230,669.

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Student theses

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