The cost of
transportation has a great weight in the decision-making of business agents.
The correct choice may provide greater returns in the medium and long term. In
the research we tried to approach the Black & Scholes model with twin
security procedure (comparison of two models with similar methods). This method
absorbs the market oscillations in ex-nunc. Three companies were used: MRS
- Logistics S.A. and National Steel Company -
CSN for railroad, in relation to the pipeline the company was Anglo Ferrous
Brazil subsidiary of Anglo American. The real
options model was applied to distinguish the investment in ore pipeline or
railroad for the ore transportation in the Brazilian scenario, which was very
inflated by the central bank interest rate and on any hypothesis, rail
transportation was the best in the period analyzed (2008 to 2016).
JEL classification numbers: R42; M21; L92;
Keywords: Real options, Investment analysis, Ore transportation,
Railroad, ore Pipeline.