Indonesia is the largest archipelagic state and also being maritime country. It is supported by the fact of Indonesia has 13,466 islands which have large potentials in fishery and can be utilized for logistic and shipping operations. Many business entities operate in fishing industry, wants to utilize its fish vessel into cargo ship and passenger (commercial) ship. This research discusses what kind of costs that will arise by operating its passenger cargo ship and what kind of income from its cargo ship and passenger ship after they are operated. Thus, the research focuses on those two major problems. The analysis was done by using Cargo Allocation Model (CAM) Method for determining the cargo placement to optimize the operation. Yielding variables can consist of special integers (variable numbers). In addition, constraints, decision variables, and parameters for the allocation of these vessels are clear enough The result shows that it could increase its cargo freight until 80%. In other hands, it needs to decrease the fuel cost and increase the cargo fare in terms of decreasing the operational cost of cargo ship into IDR 473,345,834 per month.
