Comparative Cost Analysis of Domestic Container Shipping Network: A Case Study of Indonesian Sea-Toll Concept
Main Article Content
Abstract
The Logistics Performance Index (LPI) of Indonesia shows minor improvement compared to neighbouring countries such as Singapore and Malaysia. The economic disparity between Indonesia’s eastern and western regions has reportedly become one of the fundamental problems in the country. Consequently, an ambitious project on shipping connectivity improvement, namely the ‘Sea-Toll’, has been proclaimed by the Indonesian government to overcome this chronic problem. One of the most influential parameters for measuring the success rate of this project is cost efficiency. Therefore, this paper proposes a comparative approach by constructing a generalised cost model. It develops a measurement for transport costs that combines actual freight cost with the value of time attached to delivery activities concerning cargo types. Overall results study depend on the shipping network is described in terms of a current and future condition. This condition is because the factor of economies of scale has a significant influence in the combination of actual empirical data and extractions of regression approach with the function of vessel size. Finally, all scenarios show that there is a positive relationship with a convincing impact on efforts to save costs for domestic shipping routes after the implementation of the sea-Toll program.
Downloads
Article Details
Section
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Jurnal Penelitian Transportasi Laut by Puslitbang Transportasi Laut, SDP is licensed under a CC BY-NC-SA
Based on a work at https://ojs.balitbanghub.dephub.go.id/index.php/jurnallaut/
References
Bappenas. (2015), “Implementation Of Sea-Toll Concept 2015-2019”, S.L.: Indonesian Ministry Of National Development Planning.
Cullinane, K. And Khanna, M. (1999), “Economies Of Scale In Large Container Ships”, Journal Of Transport Economics And Policy, Vol. 33, No. 2, Pp. 185–208. Doi: 10.1016/S0966-6923(00)00010-7.
Clarkson, (2016). “Clarkson Intelligence Data Of Containership Worldwide, S.L”.: Clarkson Database.
Coordinating Ministry For Economic Affairs. (2011), “Masterplan Acceleration And Expansion Of Indonesia Economic Development 2011-2025”. Edited By Coordinating Ministry For Economic Affairs, Republic Of Indonesia.
Drewry. (2012), “Business Review On Domestic Container Main Sea Corridor – Final Report V4”.
Fahmiasari, H. (2016), “Developing Inland Logistics Hub In North Sulawesi Province To Reduce Transport Cost To/From Bitung Port”. Delft University Of Technology.
Fahmiasari, H. And Parikesit, D. (2017), “Maritime Network Efficiency Comparison In Indonesia: Nusantara Pendulum And Sea-Toll”, The Asian Journal Of Shipping And Logistics, Vol. 33, No. 1, Pp. 1–6.
Fahmiasari, H. (2017), “International Shipping Line Through Indonesia” [Interview] (12 July 2017).
Hsu, C. I. And Hsieh, Y. P. (2007) ‘Routing, Ship Size, And Sailing Frequency Decision-Making For A Maritime Hub-And-Spoke Container Network’, Mathematical And Computer Modelling, 45(7–8), Pp. 899–916. Doi: 10.1016/J.Mcm.2006.08.012.
Javier, F., Tovar, B., Ramos, F. J. (2010) ‘Productivity Change And Economies Of Scale In Container Port Terminals : A Cost Function Approach Productivity Change And Economies Of Scale In Container Port Terminals A Cost Function Approach’, Journal Of Transport Economics And Policy, 44(May), Pp. 231–246.
Grey, A. (1978), “The Generalised Cost Dilemma”, Journal Of Transportation, Vol. 7, No.3, Pp. 261–280, Doi: 10.1007/Bf00165495.
Marine Traffic. (2017), Marine Traffic Intelligence Database: Indonesian Vessels, S.L.: Marinetraffic.Com.
Meratus. (2017), Meratus Line Website. [Online]. Available At: Http://Www.Meratusline.Com/Eng/Schedule-Tracking-Vessel-Schedule/ [Accessed 11 July 2017].
Notteboom, T. & Cariou, P., (2013). “Slow Steaming In Container Liner Shipping: Is There Any Impact On Fuel Surcharge Practices”. The International Journal Of Logistics Management, 24(1), Pp. 73-86.
Notteboom, T. E. & Rodrigue. J., (2005). Port Regionalization: Towards A New Phase In Port Development. Maritime Policy And Management, 32(3), Pp. 297-313.
Pelindo I, Ii, Iii, Iv. (2016), “Annual Report Of Pelindo I, Ii, Iii, Iv”.
Ray, D. (2008), “Indonesian Port Sector Reform And The 2008 Shipping Law”, Development.
Rodrigue, J.P. (2017), “The Geography Of Transport Systems”. 4th Ed. New York: Routledge.
Rose, N., Woods, S., Rose, B. & Susandarini. (2012), “Indonesian Cabotage Regime: Implications For Foreign Owners, Operators And Financiers”, [Online]. Available At: Https://Www.Marinemoneyoffshore.Com/Node/3610 [Accessed 22 July 2017].
Samudera Indonesia. (2017), “Annual Report Of Samudera Indonesia 2016”. Available At: Http://Www.Samudera.Com/Id/Annual-Report/ [Accessed 11 July 2017].
Shekhar, V. & Liow, J. C. (2014), “Indonesia As A Maritime Power: Jokowi’s Vision, Strategies, And Obstacles Ahead”, [Online] Available At: Https://Www.Brookings.Edu/Articles/Indonesia-As-A-Maritime-Power-Jokowis-Vision-Strategies-And-Obstacles-Ahead/ [Accessed 8 May 2017].
Susanty, F. (2017), “Indonesia Eyeing Slice Of Singapore’s Market” [Online] Available At: Www.Thejakartapost.Com/News/2017/01/25/Indonesia-Eyeing-Slice-Of-Singapores-Market.Html [Accessed 8 May 2017].
Spil. (2017), Spil Website, [Online]. Available At: Http://Www.Spil.Co.Id [Accessed 11 July 2017].
Stopford, M. (2009), “Maritime Economics”, 3rd Ed, Oxon: Routledge.
Tavasszy, L. A. (1996), “Modelling European Freight Transport Flows.”, Delft University Of Technology, Transportation Planning And Traffic Engineering. Delft: Delft University Of Technology.
Temas Line. (2017), Temas Line Website, [Online]. Available At: Http://Www.Temasline.Com/Temas-Vessel.Html [Accessed 11 July 2017].
The World Bank. (2016), “Logistic Performance Index (Lpi) Report Of 2010, 2012, 2014 And 2016”, S.L.: United Nations: World Bank.
The World Bank. (2017), “Port Infrastructure Quality Index”, S.L.: United Nations: World Bank.
Van Hassel, E., Meersman, H., Van De Voorde, E. & Vanelslander, T. (2016), “Impact Of Scale Increase Of Container Ships On The Generalised Chain Cost”, Maritime Policy & Management, Vol. 43, Pp. 192-208.
Veldman, S. (2011), “On The Ongoing Increase Of Containership Size”. Rotterdam.
Veldman, S., Liu, M. And Garcia-Alonso, L. (2016), “Testing Port Choice Models Using Physical And Monetary Data: A Comparative Case Study For The Spanish Container Trades”, Maritime Policy & Management, Vol. 43, No. 4, Pp. 495–508.
Zamparini, L. And Reggiani, A. (2007) ‘Freight Transport And The Value Of Travel Time Savings: A Meta‐Analysis Of Empirical Studies’, Transport Reviews, 27(5), Pp. 621–636. Doi: 10.1080/01441640701322834.