Decision Process Analysis for Ethanol Storage Expansion in the Santos Port: A Case Study

Abstract

This paper analyzes the investment decision to expand ethanol storage in a time of uncertainty about the product exports. The main purpose is to analyze the decision-making process in a recent storage expansion performed in a marine terminal in the port of Santos. We tried to identify the decisions and goals of the organization, the alternatives found, the uncertainties and the risks, the process of choosing the best alternative and which problem solving modeling tools the company used. Brazil is a major producer of high quality ethanol producers in the world, the Brazilian product is a strong competitor to serve the global market and the quality of port logistics infrastructure has a significant impact on exports, which makes the decision- making process to be very relevant. Thus, the article seeks to deepen the theoretical justification, associated with a research performed in a company related to this industry. The analytical model of the study is based on bibliographic research and case studies. The study is a critical analysis of the decision-making process used in this case, exploring assessed alternatives and possible reasons for such referral. In addition, it evaluates the tools that could have made the process more effective and comprehensive.