Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare

Railways play a significant role in daily life, offering speed, safety and massive capacity for delivering people from one place to another. However, developing countries such as Indonesia are currently encountering problems related to Operation and Maintenance (OM) contracts. Railway operators are...

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Main Authors: Herawati Zetha Rahman, Mohammed Ali Berawi, Bambang Susantono, Perdana Miraj, Jade Sjafrecia Petroceany, Rosemarie Maya
Format: Article
Language:English
Published: Universitas Indonesia 2018-04-01
Series:International Journal of Technology
Subjects:
Online Access:http://ijtech.eng.ui.ac.id/article/view/813
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author Herawati Zetha Rahman
Mohammed Ali Berawi
Bambang Susantono
Perdana Miraj
Jade Sjafrecia Petroceany
Rosemarie Maya
author_facet Herawati Zetha Rahman
Mohammed Ali Berawi
Bambang Susantono
Perdana Miraj
Jade Sjafrecia Petroceany
Rosemarie Maya
author_sort Herawati Zetha Rahman
collection DOAJ
description Railways play a significant role in daily life, offering speed, safety and massive capacity for delivering people from one place to another. However, developing countries such as Indonesia are currently encountering problems related to Operation and Maintenance (OM) contracts. Railway operators are mostly experiencing a negative rate of return when operations depend only on farebox revenue. Thus, an alternative approach that includes government involvement should be instigated to improve project performance. This research aims to evaluate the contract agreement between the state, in the form of the Ministry of Transportation, and business entities in the operation and maintenance phase. The Makassar–Parepare railway section on Sulawesi Island is used as a case study. The study uses a combination of qualitative and quantitative approaches that follow three stages: assessing the initial design; generating an alternative OM scheme; and propose a suitable OM scheme. The results indicate five components that should be considered when developing an OM contract, namely the tariff, risk, feasibility, subsidy and period of the contract. The study recommends a five-year contract for operation and maintenance, and the government should assign a business entity to manage available assets in the project.
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spelling doaj.art-6ed67127e8b64c9ab920c5cfe016c1542023-01-02T03:02:21ZengUniversitas IndonesiaInternational Journal of Technology2086-96142087-21002018-04-019354955710.14716/ijtech.v9i3.813813Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-ParepareHerawati Zetha Rahman0Mohammed Ali Berawi1Bambang Susantono2Perdana Miraj3Jade Sjafrecia Petroceany4Rosemarie Maya5Universitas PancasilaUniversitas IndonesiaCenter for Sustainable Infrastructure Development, Universitas Indonesia, Kampus UI Depok, Depok 16424, IndonesiaUniversitas Pancasila, Center for Sustainable Infrastructure Development Universitas IndonesiaUniversitas PancasilaUniversitas IndonesiaRailways play a significant role in daily life, offering speed, safety and massive capacity for delivering people from one place to another. However, developing countries such as Indonesia are currently encountering problems related to Operation and Maintenance (OM) contracts. Railway operators are mostly experiencing a negative rate of return when operations depend only on farebox revenue. Thus, an alternative approach that includes government involvement should be instigated to improve project performance. This research aims to evaluate the contract agreement between the state, in the form of the Ministry of Transportation, and business entities in the operation and maintenance phase. The Makassar–Parepare railway section on Sulawesi Island is used as a case study. The study uses a combination of qualitative and quantitative approaches that follow three stages: assessing the initial design; generating an alternative OM scheme; and propose a suitable OM scheme. The results indicate five components that should be considered when developing an OM contract, namely the tariff, risk, feasibility, subsidy and period of the contract. The study recommends a five-year contract for operation and maintenance, and the government should assign a business entity to manage available assets in the project.http://ijtech.eng.ui.ac.id/article/view/813ContractMaintenanceMulti-criteriaOperationRailway
spellingShingle Herawati Zetha Rahman
Mohammed Ali Berawi
Bambang Susantono
Perdana Miraj
Jade Sjafrecia Petroceany
Rosemarie Maya
Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare
International Journal of Technology
Contract
Maintenance
Multi-criteria
Operation
Railway
title Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare
title_full Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare
title_fullStr Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare
title_full_unstemmed Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare
title_short Investigation of an Operation And Maintenance Framework in the Railway Industry: A Case Study of the Makassar-Parepare
title_sort investigation of an operation and maintenance framework in the railway industry a case study of the makassar parepare
topic Contract
Maintenance
Multi-criteria
Operation
Railway
url http://ijtech.eng.ui.ac.id/article/view/813
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