Port terminal in the northern region of Brazil: Decision about public port or private use terminal

Abstract

Brazil plays an important role in the world's trade of agricultural grains, notably soybeans. Recently, Brazilian production of soybeans has moved to the central-western and northern regions, thus creating a demand for new outflow routes for export. This paper discusses the decision factors for the implementation of specialized port terminals located in the northeast and north of the country, specifically in the area known as Arco Norte. As a methodology, the Analytic Hierarchy Process (AHP) decision tool is used. This involves applying a questionnaire to port experts and managers to identify and classify decision criteria for investments in the possible alternatives available in Brazil's regulatory legislation: leasing of structures in a public port terminal or implementing a private terminal. The results show Port Location (54%) as the most relevant criteria, followed by Economic and Financial (27.8%), Performance and Dimensioning (11.2%), and Contract and Legislation (6.9%) criteria. The study pointed to the investment priority the mode Private Use Terminals, which is confirmed by the country's recent investment in port terminals which has been effective.