Beyond River Port Logistics: Maximizing Land-Constrained Container Terminal Capacity with Agile and Lean Operation

Prabowo Budhy Santoso (), Haryo Dwito Armono, Raja Oloan Saut Gurning and Danang Cahyagi
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Prabowo Budhy Santoso: Interdisciplinary School of Management Technology, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia
Haryo Dwito Armono: Interdisciplinary School of Management Technology, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia
Raja Oloan Saut Gurning: Interdisciplinary School of Management Technology, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia
Danang Cahyagi: Interdisciplinary School of Management Technology, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia

Sustainability, 2025, vol. 17, issue 13, 1-25

Abstract: Indonesia’s high logistics costs—approximately 14.6% of its GDP—pose a significant challenge to national economic competitiveness. Key contributing factors include complex geography, fragmented multimodal transport systems and inefficient container terminal operations, particularly concerning the handling of empty containers. This study investigates operational optimization in a container terminal using Agile and Lean principles, without additional investment or infrastructure expansion. It compares throughput before and after optimization, focusing on equipment productivity and reduction in idle time, especially related to equipment and human resources. Field implementation began in 2015, followed by simulation-based validation using system dynamics modeling. The terminal demonstrated a sustained increase in capacity beginning in 2016, eventually exceeding its original design capacity while maintaining acceptable berth and Yard Occupancy Ratios (BOR and YOR). Agile practices improved empty container handling, while Lean methods enhanced berthing process efficiency. The findings confirm that significant reductions in port operational costs, shipping operational costs, voyage turnover time, and logistics costs can be achieved through strategic operational reforms and better resource utilization, rather than through capital-intensive expansion. The study provides a replicable model for improving terminal efficiency in ports facing similar constraints.

Keywords: river port; logistics; container terminal; terminal capacity; land-constrained; Lean operation; Agile operation; port optimization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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