Hub facility location in this study is related with driving the traffic from origin to destination of the cargo express by finding optimal hub facilities and allocating demand node to hubs. The objective of this research is to determine the locations of hubs to allocate non-hub nodes to hubs with minimizing total cost. Total cost includes transportation costs from origin to destination, fixed costs for new hub investments, and carbon emission costs resulting from transportation activities among facilities. An approach to the capacitated multiple allocation hub location problem is presented and an integer linear programming model is developed to find the solution of this problem. This study also calculated the carbon emission level to consider environmental effects as an integration method in sustainable supply chain management applied to facility location problem. Computational analysis is conducted in order to observe the resulting hub networks. The final results of this research are the optimal locations for cargo express transfer terminals attached in a hub-and-spoke network. The results obtained PWS stations selected as hub facilities with the total required cost of IDR 758,650,360.103. The delivery of goods by train is done through the station route PWS, KT, YA, KTA, KYA, PWT, CN, BKS, JNG, and PSE.
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