Two levels model for the optimal integration of freight transportation between intra- and inter-islands in the Indonesian archipelago

Abstract

The Indonesian Archipelago has numerous commodities, which are transported between the islands by ship. The distribution of goods in Indonesia represents the movement of commodities intra-islands, and inter-islands, which indicates two levels of activity. Accordingly, we propose a model with two levels of freight transport. The first level shows the growth in commodities, which is used to forecast their intra-island flow. The second level is based on a generating-attracting model of the port-to-port system, which is implemented to show the inter-island flow of commodities. The model uses Tanjung Perak Port as the port of loading and unloading commodities in its hinterland area. The result indicates that the growth of commodities and containers around Indonesia will increase over the next ten years. Hence, this research suggests that the flow of the commodities between ports and from port-to-hinterland needs to be managed, based on the demands of each commodity.