A Study of Feasibility for Operational Development of the Makassar - Parepare Line in the Implementation of PPP for Railway Management in South Sulawesi

Abstract

In order to operate the Makassar – Pare-Pare train that connects various cities in the South Sulawesi province, it is important to develop train operation plans and cultivate a new transportation culture using trains for the people of the region. This study aims to evaluate the economic feasibility of developing train operation plans for various commercial scenarios. It examines the passenger projections and the value of sustainable Makassar-Parepare train operations. The economic feasibility value will indicate the economic year, which can be used as an evaluation material for the operational organizers of the Makassar – Pare-Pare train. The study focuses on the Break Even Point (BEP) value indicator. The research results show that BEP will occur in the 27th year. This means that operators need 27 years to reach the BEP value. Therefore, a guarantee of certainty is required for the train operator to achieve this value. After analyzing the projected demand calculations per year, it was found that the revenue from ticket sales (passenger forecasting conditions) for up to 30 or even 60 years still cannot reach the BEP value considering the projected increase in demand is not very significant per year.s indicates that operators need 27 years to reach the BEP value so a guarantee of certainty is needed as a train operator to achieve this value. From the results of projected demand calculations per year after the direct assignment contract scenario to PT. KAI to achieve the BEP value, and taking into account the economic service life of 30 years, the next scenario uses the demand value (ticket sales) as income. The value of revenue from ticket sales (passenger forecasting conditions) for up to 30 or even 60 years still cannot reach the BEP value considering the projected increase in demand is not very significant per year..