Value of time and port choice: An approach regarding import companies in Brazil

Abstract

The cargo release time in Brazilian ports is a critical factor that impacts the competitiveness of companies. This paper analyzed the port choice process from companies in two states in the Southeast region of Brazil: Rio de Janeiro and Minas Gerais. We used Stated Preference data. Multinomial logit and mixed logit with error components models were estimated. We analyzed the following attributes: taxation, road transport tariff, ship calls, port tariff, sea freight tariff and cargo release time. The experimental designs were structured using an efficient design for Rio de Janeiro, and a Bayesian efficient design for Minas Gerais. A comparison of the port choice behavior was carried out between the states. For each state, the Value of Time (VOT) was calculated referring to the willingness of companies to pay for the reduction of one unit (day) of cargo release at ports. The estimated VOT for companies in RJ was R$/t.day 387.45 (77.49 U$S/t.day) and for companies in MG, it was R$/t.day 364.93 (72.98 U$S/t.day). The results indicate that the estimated values may vary according to characteristics, such as company size and product type.