Vol 6, No 3 (2015) > Industrial Engineering >

Seaport Dimensional Analysis towards Economic Growth in Archipelagic Regions

Marcus Tukan, Tri Achmadi, Sjarief Widjaja

 

Abstract:

The performance of a seaport is determined by the
coherence between the optimal dimensions of the seaport and the economic
potential of the area where the seaport is located. Otherwise, the economic potential
of the region can drive how big the port should be developed. To study the
behavior of seaport parameters on regional archipelagic economic zones,
dynamics models are used, where the econometric model is applied to the
completion of the Cobb-Douglas production equation. The results obtained by
this analysis showed that the increased volume of loading/unloading cargo is
correlated to local economic growth; and, the increase of loading/unloading of
cargo can promote the growth of the region’s Gross Domestic Product (GDP).
Increased volume of loading-unloading cargo is correlated to the growth of
vessel hold capacity/deadweight tonnage (DWT). GDP growth is correlated to the
demand load capacity of the vessel (DWT); and the increase of GDP requires definition
of a length of berth (Lb). Hence, it is concluded that there is a strong
influence between the development of port dimensions and the economic growth of
archipelagic regions.

Keywords: Archipelagic Region; Development; Dynamics models; Economy; Seaports

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