Development of Maritime Logistic Network Model of Indonesia Coking Coal Industry.

Indonesia coking coal was actively started since 1990s while the production massively began since 2010. World steel demand is increasing in the recent years, contributing to the escalation of coking coal demand. This trend is an opportunity for Indonesia to increase coking coal production. The major challenge for the industry is the transportation, logistic, and distribution system. In the maritime aspect, mining owner has to ship the coal through 774 Km across Barito River in South Kalimantan, with limited barge capacity in 3.700 MT per barge. This created an un-optimal logistic cost due to the limitation of barge capacity, number of barges needed, limited sailable days and shallow river depth. This research attempts to formulate the optimal maritime logistic model to minimize the logistic cost and number of barges needed. A case study was conducted in PT. XYZ to formulate the model, which is one of the biggest coking coal company in Indonesia. This research found that the combination of two logistic model have to be used, hub and spoke and cross docking. By MILP calculation, cross docking model has biggest volume portion with 67% of annual shipment volume target, while the rest allocated to hub and spoke model. The location for hub and spoke facility is also been generated by factor rating based method, AHP.