Assessing the objectives of dry ports: main issues, challenges and opportunities in Brazil

• Date: 19 November 2020
• Published date: 19 November 2020
• DOI: https://doi.org/10.1108/IJLM-10-2020-0386
• Pages: 237-261
• Subject Matter: Management science & operations,Logistics
• Author: Thiago de Almeida Rodrigues,Caroline Maria de Miranda Mota,Udechukwu Ojiako,Fikri Dweiri

Assessing the objectives of dry

ports: main issues, challenges and

opportunities in Brazil

Thiago de Almeida Rodrigues

Management Engineering Department, Federal University of Pernambuco,

Recife, Brazil and

Management Engineering Department, University of Sharjah,

Sharjah, United Arab Emirates

Caroline Maria de Miranda Mota

Management Engineering Department, Federal University of Pernambuco,

Recife, Brazil, and

Udechukwu Ojiako and Fikri Dweiri

Management Engineering Department, University of Sharjah,

Sharjah, United Arab Emirates

Abstract

Purpose –The purpose is to identify the main characteristics of dryports (DPs) in Brazil, discussing the role of

this logistic player, challenges and opportunities. Furthermore, this study provides a structured framework to

drive DP decision-makers, identifying and assessing a network of means–end objectives, which could be

replicable to other contexts.

Design/methodology/approach –This article approached initially a literature review and exploratory

research to discuss the main characteristics of DPs in Brazil. The second step was to conduct a qualitative

analysis following the value-focused thinking (VFT) approach in two case studies in Pernambuco state to

assess the achievement of the main objectives.

Findings –This article identified that the main characteristics of DPs in Brazil are offering additional services

with a cheaper storage cost, handling mainly import cargo and being connected to seaports through highways.

Moreover, this study resulted in a framework to assess the objectives of DPs, which could be replicable in other

contexts, improving the current operations of DPs.

Practical implications –The framework to assess DPs’objectives bridged the gap between the literature

and the practiceworking as a tool to drive decision-makers to improve the current performance of DPs in Brazil.

Additionally, the main issues, challenges and opportunities discussed provide managers, policymakers and

DPs operators with valuable insights into this theme.

Originality/value –This paper is the first study to present a framework to assess the objectives of DPs as a

valuable tool to drive decision-makers to improve DPs operations. From this study, lessons could be learned

and the process described could be replicable in other countries.

Keywords Decision-making, Maritime logistics, Performance measurement, Supply chain competences

Paper type Case study

1. Introduction

Developing a supply-chain infrastructure is one of the greatest challenges faced by

governments, trying to achieve an efficient logistic network, and organizations, which

worldwide strive to incorporate effective management into their existing competitive

strategies (Arora et al., 2016). As an option to improve the congestion in seaports, delays in the

Assessing the

objectives of

dry ports

237

The authors would like to thank the financial support from FACEPE (Fundaç~

ao de Amparo a Ci^

encia e

Tecnologia do Estado de Pernambuco) and CAPES (Coordenaç~

ao de Aperfeiçoamento de Pessoal de

N



ıvel Superior). They would also like to thank the two anonymous reviewers of the International Journal

of Logistics Management for their comments on earlier versions of this paper.

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0957-4093.htm

Received 30 January 2020

Revised 2 November 2020

Accepted 2 November 2020

The International Journal of

Logistics Management

Vol. 32 No. 1, 2021

pp. 237-261

© Emerald Publishing Limited

0957-4093

DOI 10.1108/IJLM-10-2020-0386

supply chain, reduction in transportation costs and environmental impact, dry ports (DPs)

have a key role to play in advancing port-hinterland connectivity, mitigating problems

caused by constraints related to land and others that limit seaports’growth, coordinating the

operation of the seaport supply chain and supporting regional economic development (Feng

et al., 2013;Roso and Lumsden, 2010).

DP was originally defined as an inland terminal to and from which shipping lines can issue

their bills of lading (UNCTAD, 1982), but the most widely used definition is that DP is an

inland intermodal terminal directly connected to seaport(s) with high-capacity transport

mean(s), where customers can leave/pick up their standardized units as if directly to a seaport

(Roso et al., 2009). However, as DPs exist in very different forms and arrangements under

different terms around the world, they differ in location, functionality, maturity level,

ownership and initiation processes (Khaslavskaya and Roso, 2020), making such definition a

complex issue. Consequently, more studies about the characteristics of DP operators around

the world will enrich the discussion on this subject.

The questfor logistics managementresearch is to evaluatecurrent and formerpractices and

provide guidance to practitioners and policymakers on what to do and how to act regarding

present and future challenges (Nilsson, 2019). While studies about DPs have become more

significantin the last ten years,the main research wasapplied in countries ofAsia, Europe and

NorthAmerica,coveringthemes asDP concept,networkperspective,economic,performanceand

environmental impact (Witte et al.,2019;Khaslavskaya an dRoso, 2 020).However, thisscenarioof

growthon DPresearch isnot the samein LatinAmerica,especiallyin Brazil,the largestcountry in

SouthAmerica with the seventh-largest nationaleconomy in the world.Only a few studies have

describedthe context ofDPs in Brazil over the pastyears, despitethe relevance of the countryto

the international trade market (Padilha and Ng, 2012;Ng et al.,2013;Rodrigues et al., 2020).

There are currently 56 DPs in Brazil (Economy Ministry, 2020), which have played a major

part in cargo operations. Morover, the trade balance has presented records in the past years,

and container handling has increased by almost 50% since 2010, positioning the country as

the most important container-handling economy in South America and the 20th largest in the

world (UNCTAD, 2019;ANTAQ, 2018). In the same direction, Pernambuco state, located in

Northeastern Brazil, outstands as the most relevant container hub in the region, with more

than 1,053 exporters and importers, handling more than 38% of the total volume in 2019

(ANTAQ, 2020;MDIC, 2020).

DPs have been implemented as an alternative solution to logistics challenges, resulting in

at least 37 benefits, as described by Khaslavskaya and Roso (2020). However, DP

implementation requires large investments and collaboration from many stakeholders as

investors, customers, government agencies, rail and road carriers, seaport operators and so

on, most of them with conflict of interests (Nguyen and Notteboom, 2016).

Despite the benefits that DPs could bring to the supply chain and the economic relevance

of Brazil to the international trade market, there is a lack of information on this subject in the

scientific literature as well in government regulatory reports in Brazil. To overcome these

issues, this study discusses the main characteristics, challenges and opportunities of DPs in

Brazil, providing relevant information and insights into it to improve logistics network.

Additionally, this article provides a structured framework to drive further DP decision-

making situations, identifying and assessing a network of means–end objectives through a

value-focused thinking (VFT) approach, applied in two case studies. In this way, this article

will answer three main research questions (RQ), as follows:

RQ1. What are the main characteristics of DPs in Brazil?

RQ2. What is the role of DPs in Brazil and how it could be assessed?

RQ3. What are the main issues, challenges and opportunities related to DPs in Brazil?

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