Abstract:To keep competitive price of goods, the cost of logistics goods transport should be low. Shipment of goods in Java Island is dominated by trucks as high as 98% while the use of trains is only 2%. Truck-based goods transport poses problems from traffic congestion to high fuel inefficiency. Logistics centers integrated with freight railway have become one of the options to solve the the problem. Using qualitative approach, this study aims to investigate how freight railway integrated logistic center improve smooth flow of goods transport. Data collection was obtained through non structured, semi structured and depth interviews. In addition, focus group discussion was also conducted to collect data based on different perspectives from various stakeholders. The result is freight railway in logistics centers if managed properly is capable of lowering lead time, freight costs of goods, and reducing traffic density of highways.

Pusat Logistik Berikat (PLB) or The Bonded Logistics Center is part of the Government's Economic Policy Package issued in September 2015. This clarified by Regulation of the Minister of Finance No. 272 of 2015 on Bonded Logistics Center (PLB) plus the Regulation of the Director General of Customs and Excise No. 1 of 2016, Regulation of the Director General of Customs and Excise No. 2 of 2016 and Regulation of the Director General of Customs and Excise No. 3 of 2016.  The Implementation of Bonded Logistics Center (PLB) has managed to reduce the clearance time process from 4 days to 1.8 days.

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