Port Maritime Connectivity in South-East Indonesia: A New Strategic Positioning for Transhipment Port of Tenau Kupang

• Main Authors: Rumaji, Ana Adiliya
• Format: Article
• Language: English
• Published: Elsevier 2019-12-01
• Series: Asian Journal of Shipping and Logistics
• Online Access: http://www.sciencedirect.com/science/article/pii/S2092521219300720

Indonesia faces a number of crucial issues regarding cargo distribution in terms of the availability of infrastructure, shipping patterns, supply and demand of maritime transport including port connectivity. The aim of the present article is to examine and explore the scenarios for maritime access through the Eastern-Indonesia. In this study, we address the issue of high logistics costs and price disparity between the Western and Eastern regions of Indonesia. There are three scenarios has been constructed, in which Scenarios I and II apply a multi-port-calling networks based on the implementation of the Sea Toll Programme in Indonesia, while scenario III uses a hub-and-spoke network by involving the port of Tenau Kupang-East Timor Province as a transhipment port of container distribution from the port of Tanjung Perak to the South-East of Indonesia. As the result, scenario III generates the lowest total shipping costs. In other words, involving the port of Tenau Kupang as a transhipment port can help to reduce total shipping costs. Finally, the selected scenario become a recommendation for shipping practices to find the best solutions to improve the eastern connectivity in Indonesia. Moreover, the result also will encourage the government and port authority to take a consideration in re-configure Tenau-Kupang port infrastructure to become transhipment port thus can attract the cargo volume. Keywords: Strategic Position, Tenau Kupang, Multi-port-calling Networks, Hub-and-Spoke Network, Indonesia