RAIL TRANSPORT AS A GREEN LOGISTICS SOLUTION: A CASE OF PT KAI FREIGHT OPERATIONS

Abstract

The logistics sector is a major contributor to global carbon emissions, accounting for approximately 
24% of energy-related CO₂, with developing countries like Indonesia remaining heavily dependent on 
road-based freight transport. This study aims to analyze the role of rail transport as a green logistics 
solution by evaluating its impact on environmental, operational, and business performance. A mixed
method approach was employed, combining qualitative case study analysis (thematic analysis of 
operational documents and semi-structured interviews with three logistics managers) with descriptive 
quantitative data presentation. The research focuses on PT KAI freight operations from 2023 to 2025, 
using secondary data from operational reports, industry publications, and Scopus-indexed literature 
(2023–2026). Carbon emissions were calculated using the formula E = Q × D × EF, while operational 
and business performance were assessed through OTIF (On-Time In-Full), capacity utilization, and cost 
efficiency indicators. The findings reveal that rail freight produces 15–30 g CO₂/ton-km compared to 
60–150 g CO₂/ton-km for road transport, representing emission reductions of 70–80%. Rail logistics 
achieves OTIF rates up to 98%, significantly higher than road's 85–90%, and reduces total cost per ton
km by approximately 50%. All five hypotheses were supported, confirming that green logistics 
positively affects environmental, operational, and business performance simultaneously. This study 
contributes theoretically by proposing an integrated three-dimensional performance framework and 
practically by providing strategic insights for logistics companies and policymakers to accelerate modal 
shift toward sustainable, low-carbon freight systems in Indonesia.