AbstraksiIndonesia has planned to develop 24 main ports to support sea tollway concept. It has envisioned to balancing the trading activity between the eastern and western part of Indonesia. Nevertheless, trade problem in Indonesia also is caused by inefficient hinterland transportation to/from the port, thus increase transport cost. Bitung Port was the focus of this study by its international hub port role in the future. It also experiences the high transportation cost in the hinterland. This research focused on developing dry port in North Sulawesi Province, the hinterland of Bitung Port. Discrete cost simulation method was used to analyze the location and cost reduction after dry port applied. The cost reduction was assessed after implementing the more organized schedule and quantity shipment in the determined dry port. It was intended to overview the highest transport cost saving from each regional node when it was implemented to be dry port. There are 15 candidates, which represent the districts in North Sulawesi Province. The result indicated that Airmadidi was the most optimum location for a dry port. It can save IDR 320,000/ton from other regional nodes. Social Cost Benefit Analysis was used to assess the economic feasibility of the project. The cost component represented infrastructure, operation and maintenance, and equipment cost. On the other hand, the benefit component represented consumer’s surplus, socio cost of carbon saving, and traffic accident reduction saving. This project is considered as an economically feasible by result IRR of 9%, BCR of 2.3, and NPV of IDR 613 billion.