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

Indonesia, as the world’s largest archipelagic country, should take into account the critical role of maritime transportation as a basic infrastructure for connecting inter-island economic activities. According to the National Logistics System, Indonesia should have its own international hub port in the future, thus this study is required to analyse the connectivity between main domestic ports and international hub ports in Indonesia. A heuristics approach is applied by combining the Feeder Network Design Problem and Multiple Commodity Network Flow Problem to create the optimum routes as well as to allocate the cargo by minimizing the total transportation costs. Two scenarios are conducted in the calculation, in the first scenario, we analyze all international containers of six main domestic ports (with Belawan), while the second scenario does not consider on the international containers in Belawan (without Belawan). The second case corresponds to directly delivering all international containers to Belawan, without considering these for the connectivity network. In conclusion, each route will have the fewer legs and shorter distances if the larger ship capacity used, consequently, the lower total shipping costs will be gained on these routes.