Kandangan dry port project: an option of solution for congestion: case of Lamong Bay Terminal (Surabaya, Indonesia)

The increasing number of the container throughput and traffic has affected the availability of container yard in Lamong Bay Terminal (TTL). This was due to the development of industries in the hinterland. If TTL cannot handle this, TTL cannot improve their productivity for throughput and this can cause congestion. This study observes political, economic, social, technological, environmental, legal and ethical (PESTELE) factors that need to be considered by Kandangan Dry Port to optimize its purpose as an option of the solution to handle TTL Congestion. By using the 7-point Likert scale analysis tool, the previous data are collected in advance of the respondents who are directly involved with port operations such as container depot, terminal operators, port operators, shipping line, logistic providers. Moreover, by using the Importance-Performance Analysis (IPA) to analyze the gap between “The importance of the factors” and “The existing condition of Kandangan Dry Port” is based on the equal factors to determine the factors that need to be considered by Kandangan Dry Port. The result of the questionnaires obtained three factors that can maximize its function and considered need to focus more on that. The three factors are (1) Value added services, (2) Government support, regulation and policy and (3) Implementation of Advanced Technologies. Based on research, the main important factors affecting the success of the implementation and the development Kandangan Dry Port are the active role and policies of the government. Finally, it was concluded that Kandangan Dry Port should pay attention to important key factors, namely the active part of the support, regulation, and policy of the government. It is advisable to conduct further in-depth research on how to support, regulate and make policy of the government in the port and shipping industry to improve Kandangan dry port performance for further studies