Dry port location based on hybrid MCDM and uncapacitated fixed charge location problem for Surabaya and Teluk Lamong container terminal

Freight transport from industrial locations to seaports is still dominated by trucks. The rising trend of loading and unloading activities at Surabaya and Teluk Lamong terminals and limited stacking fields will cause congestion in the port zone, increasing travel time and resulting in high logistics costs. The concept of a Dry port as a seaport's extension will improve the effectiveness and connectivity of freight transport to and from the seaport. Moreover, determining the facility's location is an essential aspect of strategic planning that affects the facility's sustainability. This study aims to obtain a dry port location with optimum cost. The method used in this research is AHP-TOPSIS hybrid Multiple Criteria Decision Making (MCDM), then combined with an Uncapacitated Fixed Charge Location Problem. AHP generates the criteria's weight, while the TOPSIS shows the ranking of dry port locations. It was followed by Uncapacitated Fixed Charge Location Problem to find the optimum location. AHP shows that three main criteria that affect the location selection are proximity to rail, proximity to industry, and proximity to a highway. Furthermore, TOPSIS shows that the first rank is Pasuruan, but the last result shows that Kandangan is the optimum location based on Uncapacitated Fixed Charge Location Problem.