International Journal of Civil Engineering and Technology (IJCIET) Volume 10, Issue 11, November 2019, pp. 56-65, Article ID: IJCIET_10_11_007 Available online at http://iaeme.com/Home/issue/IJCIET?Volume=10&Issue=11 ISSN Print: 0976-6308 and ISSN Online: 0976-6316 © IAEME Publication

SHIPPING CONNECTIVITY IN SUPPORTING LOGISTIC TRANSPORT DISTRIBUTION IN SOUTHEAST SULAWESI

Adris Ade Putra, La Ode Muh Magribi, Ahmad Syarief Sukri, Rudi Balaka and La Welendo Transportation Engineering, Department of Civil Engineering, University of Haluoleo Kendari, Indonesia

Deniyatno Geophysical Engineering Department of Earth Science and Technology, University of Haluoleo Kendari, Indonesia

ABSTRACT The distribution of logistical transportation in supporting the movement of goods in coastal areas has very limited space, this limited space will determine the effectiveness and efficiency of the freight transportation itself. The more efficient and effective a transportation of goods the more pressing commodity prices. Distribution of goods from to and from the trading location, finally to consumers is not a simple thing, but is influenced by various chains of movement that affect the cost, time, security and safety. The results showed that sea transportation has reached all cities/regencies in the Southeast Sulawesi region, crossing vessels are sea transportation used by the community to cross inter-island within the province or inter-provincial crossings which play an important role in the smooth movement of people and goods. Port connectivity the role of driving development for remote/underdeveloped areas, to open isolated/remote areas, increase trade, population mobility and reduce regional disparity. The level of accessibility of the sea shipping network is quite adequate, because it can be seen that all regencies/cities have been connected to the crossing port, only the Wakatobi regencies whose inter- island transportation is still served by the people's shipping sea transportation. Keywords: Distribution, Commodity, Port, Logistics Transportation Cite this Article: Adris Ade Putra, La Ode Muh Magribi, Ahmad Syarief Sukri, Rudi Balaka, La Welendo and Deniyatno, Shipping Connectivity in Supporting Logistic Transport Distribution in Southeast Sulawesi. International Journal of Civil Engineering and Technology 10(11), 2019, pp. 56-65. http://iaeme.com/Home/issue/IJCIET?Volume=10&Issue=11

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1. INTRODUCTION The logistics system is in dire need of an integrated distribution system in order to be able to guarantee the availability of basic community goods in a fair and equitable manner. The current logistics system is not yet optimal, where the key commodity (key commodity factor) as a driver of logistics activities has not been effectively coordinated; transportation infrastructure is inadequate both in terms of quantity and quality. In general, the location of production activities is different from the place of consumers; the difference in these places must be overcome by transportation activities (Blueprint Sislognas, 2012) The role and function of transportation infrastructure is to facilitate the movement of goods flow effectively and efficiently, the availability of adequate transportation infrastructure networks is an important factor for realizing local connectivity. Infrastructure and local transportation networks are part of domestic connectivity that is expected to be able to connect rural, urban (city, district, and provincial) communities, centers of economic growth within one island or within an economic corridor, it is hoped that the transportation infrastructure network into the backbone must have been developed so that it will tightly interconnect between industrial, urban, and rural areas. Transportation and logistics can increase trade performance, which leads to higher incomes, job benefits, and lower poverty rates. Efficient transportation and logistics are the keys to achieving social development goals. The regulation of the transportation and logistics sector and the creation of good quality business environments can be important factors in the development and expansion of global value chains. With this condition the competitiveness of products increases, as well as the needs of basic and strategic commodities the community can be met with an appropriate amount and affordable prices. The transportation system of goods transportation in supporting the movement of goods in cities in urban areas to coastal areas has very limited space for certain road segments, especially for large trucks and container/container vehicles. The limited space will determine the effectiveness and efficiency of the transportation of goods itself. The more efficient and effective a transportation of goods the more pressing commodity prices. The journey of goods from to and from the trade location, finally to the consumer is not a simple thing, but is influenced by various chain of movements that affect the cost and time of distribution. Integration of Logistics infrastructure nodes, both logistics nodes (logistics nodes) and linkages between logistic nodes which serves to flow goods from the origin to the destination. The logistics node includes logistics and consumers, the transportation network connects rural, urban, economic growth centers, and between islands. The distribution of logistical transportation in supporting the movement of goods in coastal areas has very limited space for certain road segments, especially large trucks and container / container vehicles. The limited space will determine the effectiveness and efficiency of the transportation of the goods themselves. Distribution of goods to and from trade locations, ultimately to consumers is not a simple thing, but is influenced by various chains of movement that affect the cost, time, security and safety

2. LITERATURE REVIEW 2.1. Connectivity System In the archipelago, strengthening the connectivity system is needed so that relationships within and between islands run smoothly in supporting the economic development of an area. Connectivity in sislognas has a vision of Local Integrated, Globally Connected and has 3 levels of integrated connectivity namely: Local Connectivity (Intra Island), National Connectivity (Inter Island) and Global Connectivity (International) as shown in the picture

http://iaeme.com/Home/journal/IJCIET 57 [email protected] Adris Ade Putra, La Ode Muh Magribi above. In the archipelago, connectivity scenarios are expected to open isolated areas so that they are connected with economic centers, aiming to reduce price and service disparities, increase competitiveness and accelerate poverty reduction, which in turn can increase accessibility social and economic community. The role of the port in the connectivity system is a modal switch between sea transportation and land/road transportation (Jinca, 2011) The port as the main element in the sea transportation system is a supporter of economic activity, provides services for movement of people and goods, and is a catalyst for economic growth. Ports can play a role in driving development for remote/underdeveloped areas, known as pioneering transportation to open isolated/remote areas, increase trade, population mobility and reduce regional disparities and realize regional stability. The connectivity or node chain has 4 functions as (composition, connection, interchange, decomposition) in intermodal transportation (Rodrigue and Comtois, 2013) as in the following figure:

Figure 1 Intermodal Transportation Chain

2.2. Logistics Transportation Distribution Logistics consider the wide set of activities dedicated to the transformation and circulation of goods, such as the material supply of production, the core distribution and transport function, wholesale and retail and also the provision of households with consumer goods as well as the related information flows (Handfield and Nichols, 1999). These activities composing logistics are included into two major functions which are physical distribution; the derived transport segment, and materials management; the induced transport segment. The vast majority of companies consider customer service to be an important aspect of their business. When pressed, however, there are many companies that find it difficult to describe exactly what they mean by customer service or provide a precise definition of customer service measures. Traditionally, service provisions have been based on very broad assumptions of what customers want, rather than taking into account the real requirements of customers or at least customers’ perceptions of what they require. For any company or organization it is vital, therefore, to have a clear definition of customer service and to have specific and recognized customer service measures. It is also important to understand that customer service and customer service requirements can and will differ not just between industries and companies but additionally between the market segments that a business might serve. Another relevant factor is the recognition of the complexity of customer service provision. Customer service is inextricably linked to the process of distribution and logistics. Within this process, there are many influences that may be relevant to customer service. These range from the ease of ordering to stock availability to delivery reliability. Finally, there is the need to

http://iaeme.com/Home/journal/IJCIET 58 [email protected] Shipping Connectivity in Supporting Logistic Transport Distribution in Southeast Sulawesi balance the level of service provided with the cost of that provision. The downfall of many a service offering is often the unrealistic and unrecognized high cost of providing a service that may, in the event, be greater than is required by the customer. He growing flows of freight have been a fundamental component of contemporary changes in economic systems at the global, regional and local scales. The consideration of these changes must be made within a perspective where they are not merely quantitative, but structural and operational. Structural changes mainly involve manufacturing systems with their geography of production, while operational changes mainly concern freight transportation with its geography of distribution. As such, the fundamental question does not necessarily reside in the nature, origins and destinations of freight movements, but how this freight is moving. New modes of production are concomitant with new modes of distribution, which brings forward the realm of logistics (Hesse and Rodrigue, 2004) The rapidly changing demands of the marketplace now force firms to organize their operations around real-time information about consumer needs and the availability of productive capacity. Traditionally logistics has been fed information on customer requirements from long-range forecasts that drove the production cycles of firms. Firms now require current and immediate information about the location of productive activities as well as information linking the locations with available transport opportunities. Thus the need for seamlessness is being driven in the first instance by the challenge of rapid and flexible customer response. One way of capturing the response to this need is through the extended enterprise, a group of strategically aligned companies that focus on specific market opportunities. In this way firms can exploit the collective resources of the entire extended network of suppliers, vendors, buyers and customers (Greis and Kasarda,1997). Obviously fitting logistics in an integrated manner to these networks by the selection of appropriate modes and services is crucial (McKinnon, 2001). The location determinants of the transport and logistics industry are closely bound up with the features of the services that it furnishes. First, logistics activities are intermediate inputs, so that the demand for logistics services derives from the demand for final goods or services. Moreover, customers’ preferences significantly affect the behavior of logistics providers. Second, logistics services are business services. They are typically non-traded or furnished at much higher costs from a distance (Daniels, 1985; Markusen et al., 2005). Consequently, the use of logistics services provided from another region implies distance related coordination costs. Third, business services are normally produced with internal economies of scale (Groot, 2001) due to high set-up costs. Finally, logistics services are largely customized because customers normally have particular requirements and need differentiated logistics services. It the increasing need to transport quickly and efficiently, transport and logistics play a key role in overcoming the constraints of time and distance in modern supply chains. This is even more true in a context where firms are facing competition that is ever more global. Firms are now concentrating more on specific consumers’ requests, on delivering goods with greater speed, seeking ways to reduce costs, and improving quality (Bonacich and Wilson 2008). Indeed, logistics is becoming increasingly popular as a competitive device for companies to reduce delivery times, increase reliability and flexibility in deliveries, heighten customer responsiveness, and facilitate the successful implementation of Just-In-Time (JIT) manufacturing and distribution systems (Lai and Cheng 2009; Brouwer et al., 2011). Since the 1950s, indeed

2.3. Port Infrastructure Infrastructure development is an integral part of national development. Infrastructure is a driver of economic growth. The transportation sector is the backbone of the distribution

http://iaeme.com/Home/journal/IJCIET 59 [email protected] Adris Ade Putra, La Ode Muh Magribi pattern of goods and passengers. Other infrastructure such as electricity and telecommunications are related to efforts to modernize the nation and its provision is one of the most important aspects to increase the productivity of the production sector. The availability of housing and settlements, including drinking water and sanitation, widely and evenly, as well as sustainable management of water resources will determine the level of community welfare. In this context, in the future regional-based infrastructure development approaches are increasingly important to consider. Experience shows that transportation infrastructure plays a major role in opening up regional isolation, and the availability of irrigation is a prerequisite for successful development of agriculture and other sectors Various studies have been carried out and indeed prove the important role of infrastructure in economic growth, poverty reduction, job creation, and even specifically on the development of the agricultural sector. Then another study also shows that infrastructure investment has a significant effect on development, especially in the initial stages of development of a country World Bank, 2004). Seeing the magnitude of the positive impact arising from infrastructure development, the World Bank states that investment in infrastructure has a far greater role than investment in other forms of capital (Mujeri, 2002). Meanwhile, research conducted by Calderon and Serven (2004) shows the impact of infrastructure development on economic growth and income distribution. This study uses data samples from 121 countries in the period 1960-2000. The results concluded that: first, the development of appropriate infrastructure had a positive influence on long-term economic growth. Second, poor quality and quantity of infrastructure has a negative impact on income equality. Infrastructure has a basic meaning that is infrastructure or facilities or basic structures, ports to support the smooth operation of operations or port businesses. Port infrastructure has a very strong link with economic growth, community welfare and even social politics as indicated that regions that have better port infrastructure, have a level of welfare with good economic growth. Thus the construction of port infrastructure is one of the main factors of economic growth or the development of a region/region. Dekker et. al. (2003) emphasize that infrastructure development through capacity expansion will have a positive impact on national and regional economic development. Infrastructure development must be accepted by the community with various considerations such as environmental considerations, urban planning and socio-economic aspects even though development costs are more expensive (Dekker et al. (2003). Maloni and Jackson (2005) find different things in various large ports in North America. Port operators prefer to increase port productivity in anticipation of future container volume increases. This was done with consideration of investment costs in expanding capacity due to various constraints. This is reinforced by Dundovic and Hess's research (2005) which shows the results that the terminal capacity is very dependent on the ability of port equipment in loading and unloading, before then expanding. The implementation of transportation infrastructure is very vital in development because it serves as a means to facilitate and support community activities. Transportation has a function as a driving force, driving and supporting development and is a system consisting of infrastructure and facilities that are supported by governance and human resources that form the infrastructure network as well as the service network (Sistranas 2005) Infrastructure in a very broad context refers not only to the number of containers that are accommodated, cranes, tug areas and terminal areas but also the quality of the cranes, the quality and effectiveness of information systems, the ability to integrate intermodal transportation (roads and trains) and port management (Tongzon and Ganesalingan, 1994). If the volume handled exceeds the port cargo handling capacity, congestion at the port and the licensing will be ineffective and this can be detrimental to port users. Then the limited access

http://iaeme.com/Home/journal/IJCIET 60 [email protected] Shipping Connectivity in Supporting Logistic Transport Distribution in Southeast Sulawesi to information on the arrival of the ship will be related to the poor information system will slow down the documentation process and slow down the function of the port. Without the availability of intermodal links, ship users cannot easily move their cargo from the port which creates stagnation, delays and higher costs.

3. RESULTS AND DISCUSSION 3.1. Regional Overview Southeast Sulawesi Province is located in the Southeast peninsula of Sulawesi Island. Astronomically located in the southern part of the Equator, extending from North to South between 02 ° 45'06 ° 15 ', south latitude and stretching from west to east between 120 ° 45'- 124 ° 45' east longitude. The total area of Southeast Sulawesi is 38,067.7 km of land. Based on its geographical position, Southeast Sulawesi Province in the North is bordered by South Sulawesi Province and Central Sulawesi Province, South is bordered by NTT Province in the Flores Sea, East is bordered by Maluku Province in the Banda Sea and in the West it is bordered by South Sulawesi Province in Bone Bay Southeast Sulawesi Province, consisting of several islands, in addition to land transportation, ferry transportation also plays an important role in the mobilization of freight and services within the province and from or outside the province, in Southeast Sulawesi there are several trajectories that connect between regencies and inter-provincial routes, from some characteristics of traffic and transportation in Southeast Sulawesi, one and the other are connected to form a transportation network, for the sake of the smoothness and accessibility of the movement of goods and services.

Figure 2. Ferry Ship in Southeast Sulawesi The ferry ship is a sea transportation used by the community to cross between islands within a province or cross between provinces. In Southeast Sulawesi, crossing vessels are very important for the smooth flow of people and goods, serving inter-island passenger transport, both between regencies and between provinces, the condition of crossing vessels in Southeast Sulawesi province are also quite good. The following is a list of Ship Visits, Goods Flow and Passengers in the Southeast Sulawesi region, as shown in Table 1.

3.2. Port Connectivity System Inter-island connectivity is very important in facilitating human activities in the regions or provinces which must use sea transportation modes as their support, Sulawesi Tenggatra As a small island region that has a small number of transportation, sea transportation holds a very important role for regional development. These roles are very good for the development of regional and regional territories. The development of territories is aimed at developing

http://iaeme.com/Home/journal/IJCIET 61 [email protected] Adris Ade Putra, La Ode Muh Magribi interaction between regions externally with other regions in Indonesia. The sea transportation network should be able to promote the development of regional territories which is aimed more at increasing the ease of relations between islands and as an effort to spread development between regions and the backward.

Table 1. Vessel Visits, Goods Flow, and Passengers by District /City 2018 Number of Passenger(People) Cargo (Ton) Regency/Municipality Ship Calls Arrival Departure Unloaded Loaded (Unit) Regency 4 260 110 996 109 667 160 751 269 668 1. Buton 8 545 289 289 246 329 170 917 187 206 2. Muna - - - - - 3. Konawe 778 122 745 108 047 1 592 912 3 172 605 4. Kolaka 1 422 83 666 110 685 166 374 54 353 5. South Konawe 2 920 56 542 51 088 8 015 444 21 254 6.Bombana 2 724 72 771 61 147 65 487 9559 811 7. Wakatobi 765 93 393 97 213 81 439 175 249 8. North Kolaka 342 8 817 10 491 15 923 14 934 9. North Buton 321 - - 201 167 12 906774 10.North Konawe - - - - - 11.East Kolaka 1 371 60 949 65 706 39 490 5 618 12.Konawe Island - - - - - 13.West Muna - - - - - 14.Central Buton - - - - - 15.South Buton

Municipality 3 748 243 156 303 946 1 446 148 550 528 1. Kendari 9 252 410 293 475 736 1 640 658 1 574 986 2. Baubau 2017 36 448 1 552 617 1 640 055 13 596 979 40176688 2016 35 444 1 784 515 1 929 784 5 767 958 3423394 Source: Southeast Sulawesi Province in Figures 2018

3.3. Port Connectivity System Inter-island connectivity is very important in facilitating human activities in the regions or provinces which must use sea transportation modes as their support, Sulawesi Tenggatra As a small island region that has a small number of transportation, sea transportation holds a very important role for regional development. These roles are very good for the development of regional and regional territories. The development of territories is aimed at developing interaction between regions externally with other regions in Indonesia. The sea transportation network should be able to promote the development of regional territories which is aimed more at increasing the ease of relations between islands and as an effort to spread development between regions and the backward. The sea transportation network within the Southeast Sulawesi Province is stipulated in the Spatial Planning of the Southeast Sulawesi Province, which consists of Collecting Ports, Regional Feeding Ports and Local Feed Ports. In accordance with Ministerial Decree Number 901 of 2016 concerning the National Port Master Plan (RIPN) consists of: 5 (five) Collecting Ports namely: Murhum (Bau-Bau), Bungkutoko (Kendari), Kolaka, Raha, and Wanci, 5 (five) Feeding Ports namely: Pomalaa Port, Ereke, Lapuko, Banabungi (Wajo Market), Sikeli Port. 60 (Sixty) Local Ports and 35 (Thirty-Five) Crossing Ports.

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Figure 3. Southeast Sulawesi Connectivity Inter-island connectivity is very important in facilitating human activities in regions or provinces which must use sea transportation modes as their support. Previously, the mode of transportation only used small motorboats where the level of safety was inadequate and the price was quite high. The activities of small traders have become easier with the presence of pioneer ships that have been operating. Besides being faster in crossings, ticket prices are also cheaper, so traders can further increase sales profits from this impact The ports that already exist in Southeast Sulawesi; have adequate facilities including being equipped with a fairly large collection place. The fishermen can further increase sea products, because they have a shelter for their catch. In addition, the port area is also adequate, making business people enthusiastic about using these ports in the loading and unloading activities of goods. Adequate infrastructure development will make people in the regions more interested in building businesses so that they can absorb a lot of regional workforce. The products of production will not only be commodities between regions in Indonesia, it is also expected to become export commodities The crossing ports in Southeast Sulawesi which are still actively operating up to now number 14 ports with 9 lines, all of which are interconnected to form an integrated transportation network, as follows:  The Torobulu Ferry Port is located in South Konawe District, connecting Kendari Land with Muna Island, Muna Regency with the Port Length, width and depth of the channel Tampo Ferry Port is located on Muna Island Connecting the muna island with the Mainland of Kendari with the length, width and depth of the channel  Tondasi Crossing Port Located in Muna Regency Linking Muna Regency with Sinjai City, South Sulawesi Province.  Waraa Crossing Port Located in Buton Regency, Mainland Land, Regency of Muna Connects the Land of Muna, Buton District with Bau-bau City.  Bau-Bau Ferry Port Located in Bau-Bau City connecting Bau-Bau City and Buton Regency on the mainland of Muna Regency  Kamaru Crossing Port Located in Buton District Connects Between Buton Island and Wanci Island located in Wakatobi Regency  Wanci Ferry Port Is Located on Wanci Island Wakatobi Regency Connects Between Wanci Island and Buton Island Buton Regency  Kendari Ferry Port Is Located In Kendari City Connects Kendari City with Wawonii Island, South Konawe Regency

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 Wawonii Ferry Port Is Located On Wawonii Island Konawe Regency South Connecting between Wawonii Island and Kendari City  Dongkala Ferry Port Located in Bombana District Connects Bombana District with Buton District with Mawasangka Mainland Muna Buton District  Mawasangka Crossing Port Located on Muna Island, Buton Regency, Connecting Muna Island with Buton Regency  Tobaku Ferry Port is located in North Kolaka Regency, Connecting Southeast Sulawesi and South Sulawesi (Siwa).  Kolaka Crossing Port Located in the District of Kolaka Connecting Southeast Sulawesi and South Sulawesi (Bone). This sea transportation network is a network node that connects districts / cities through ports in a system of inter-regional linkages, a description of connectivity patterns between ports in the Southeast Sulawesi sea transportation network can be seen in the following figure:

Figure 4. Map of Crossings of Crossing Transport Services in Southeast Sulawesi Province Figure 4 shows that the connection between the ports in the sea transportation network system in the Southeast Sulawesi Province, the collecting port is a public port that functions to serve the surrounding area to then be transported to the regional collecting ports which are in the Regency City, then from the regional feeder ports to the collecting ports in the Province and then to the national and international ports.

4. CONCLUSION From the results of the analysis and discussion, the following conclusions can be drawn:  Sea transportation has reached all cities / regencies in the Southeast Sulawesi region, crossing vessels are sea transportation used by the community to cross inter-island within the province or inter-province which plays an important role in the smooth movement of people and goods.  Port connectivity plays a role in driving development for remote / backward areas, to open isolated / remote areas, increasing trade, population mobility and reducing disparities between regions

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 The accessibility level of the sea shipping shipping network is quite adequate, because it can be seen that all regencies/cities have been connected to the harbor crossing, only the Wakatobi regency whose inter-island transportation is still served by public shipping sea transportation.

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