Allowance allocation and adjustment of factors affecting railway logistics demand

Abstract

Because of the extra dimensions and weight carried on cargo trucks on Java’s North Coast Road (Pantura), the allowance policy was designed to give a discount on freight transportation services in exchange for government funding to pay the discount. It is relevant to supply and demand. The demand for services can be managed using this policy. The purpose of this research is to go further into the policy’s analysis. The endeavor to manage demand for logistics trucks and trains will be examined in greater depth by developing a regression model with two response variables, namely truck and train logistics transportation demand. Logistics train tariffs, the number of factories in one region, the distance between the industrial center and the nearest Indonesian Railway Logistics Company (KALOG), truck driver wages for one delivery, truck maintenance and operational costs, and the distance from the city of origin to the national capital are all expected to influence demand for logistics trucks and trains. While the Tangerang region has the highest tariff per kilometer and is also the longest distance from the industry center to KALOG, Jakarta has the highest truck operations and maintenance expenses. According to the findings of this study, logistics train prices, the distance between the industrial center and the nearest KALOG, and truck operational expenses all have a major influence on truck and train logistics transportation demand. These major elements have been shown to assist enhance KALOG’s profit while reducing overdimensioning and overloading on Pantura.