Efficiency Comparison between Conventional and Modern Port Operation System for Small-Scale Dry Bulk Cargo

Abstract

Since the launching of Sea Toll Road Program in 2015, the improvement in ports' operation systems has become Indonesia's foremost necessity. This improvement commonly leads to equipment modernization, while realistically, modern equipment does not always amount to a productive performance, especially in the context of small-scale ports. Instead, it is prone to creating wasteful capital and maintenance cost as well as making the planning time ineffective. This study compares two options of port operation systems in a small port, which is conventional and technologically-advanced method for dry bulk cargo. It results in thin gaps between each option's financial assessment variables, which are Internal Rate of Return, Benefit/Cost Ratio and Payback Period, regardless of a stark difference between each option's equipment cost. This study concludes that with the right approach, the conventional operation system is still the most efficient option compared to its contemporary opposite.