Center Gravity Model and Network Design to Determine route of Liner Shipping: The Case of East-West Container Shipping Corridor in Indonesia
This thesis discuss about how the appropriate route can be determined in the east- west container shipping corridor in Indonesia. There are three methods are used, which are Port Aggregation, Ship Routing and Cargo Allocation. The port aggregation is formulated by using location problem to choose the domestic hub port in every region. Ship routing and cargo allocation are determined heuristically with main objective is to find the most profitable routes. The comparison is made to see the difference between this method and the route proposed by Indonesia Port Corporation. The result showed the five domestic hub ports made by Indonesia Port Corporation brought more benefit in the term of percentage of total demand that have been accommodated and lower cost per TEU. Another comparison is made to show the superiority of this east-west container shipping corridor with the existing shipping network, in term of economic of scale.