Track: Supply Chain Management
Abstract
Railways logistics have been developed since the 19th century; however, until today, utilizing the characteristics of the railway to provide a sustainable supply of raw materials to the industrial regions from the logistics hub increases the efficiency of their supply chain. Supplying raw materials from the logistics hub to the industrial regions grants cost reduction, reliability of the manufacturer’s material supply, positively affecting production capacity, restocking interval time, and social and environmental responsibility. The objective of this study is to highlight the benefits of railway logistics to enhance the economy and improve operational capacity. This research used a mixed method to highlight critical elements of railway freight characteristics and compared them to truck freight characteristics to view the limitation of each approach to decide the optimal solution for the case via cost, environment, social economy, and future potential. The outcomes of this study will be valuable to both the industry manufacturers and the economy.