Container Shipping Network Efficiency Comparison in Indonesia: Nusantara Pendulum and Sea Tollway

Abstract

The disparity of the trading activities in Indonesia has triggered Indonesia Port Corporation to come up with the plan of Nusantara Pendulum, the future network of container shipping in Indonesia. The Sea Tollway plan is the modification of Nusantara Pendulum that is also envisioned by Indonesia President for Indonesia future backbone container plan. Both networks were designed to increase Indonesia container shipping flow from west to east and vice versa like a pendulum, thus results the reduced transport cost. This paper depicts the comparison of network efficiency analysis between these networks: Nusantara Pendulum, Sea Tollway, and the existing network. Two main methods that are used are Nagurney-Qiang and Jenelius-Peterson-Mattson. Mainly, these two methods use the efficiency calculation by considering parameters of demand (goods flow) between each region and maritime transportation cost. It is concluded afterward that: 1) Sea Tollway is 8% more efficient than Nusantara Pendulum; 2) Sea Tollway and Nusantara Pendulum are ten times more efficient than current network; 3) Eastern ports in Indonesia (Bitung and Sorong) urgently requisite a development.