Integrated Transportation Strategy to Address Industrial Development Externalities

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As industries move to developing countries, many of these countries struggle with negative externalities. The negative externalities of industrial park development, such as severe traffic congestion and its derivative problems, such as increased air pollution and road safety risks, require serious attention. Addressing these externalities requires an integrated approach that combines several strategies. Current literature shows a fragmented approach to addressing the transportation problem with a limited understanding of how integrating various strategies simultaneously create a cumulative impact. In addition, the type of strategies and practical implementation of the integrated transportation strategy in the developing country remains unexplored. This research aims to develop an integrated transport strategy by combining four prominent strategies, including supply management, demand management, land use planning, and institutional aspects, and test it empirically in a developing country case. We simulated several scenarios using quantitative comparative analysis to evaluate the effectiveness of the proposed combined strategies in solving traffic congestion in Morowali Industrial Park, Indonesia, the world’s largest producer of materials for electric vehicle batteries, which is currently facing traffic congestion problems. Our finding demonstrates that an integrated transportation strategy that combines demand, supply, and land use management can solve traffic congestion more effectively than a partial strategy. The success of the integrated transportation strategy requires a clear division of responsibilities and stakeholders’ collaboration. This result carries important policy implications for the combined scenario as an integrated strategy to overcome transportation problems.