Canaan Group: Port Metro Vancouver Container Trans-Load Service

Description

In January 2016, the president and chief executive officer of Canaan Group in Richmond, British Columbia, was evaluating plans for a proposed trans-loading facility, which would be located inland from Port Metro Vancouver. The trans-loading facility had the potential to simultaneously offer a lower-cost transportation alternative for exporters and significantly reduce greenhouse gas emissions in the Lower Mainland. Despite the potential opportunities, three important hurdles needed to be overcome before successfully launching the new operation. First, co-operation was needed from exporters and their shipping companies to provide sufficient throughput of containers. Second, an agreement from Canadian Pacific Rail to provide service at a competitive rate was essential. Third, successful negotiations were required for a long-term lease for the proposed site to justify the necessary investment. The Canaan Group president reviewed the data from a completed pilot study and wondered what his next step should be. With which stakeholder should he start his negotiation? What were his bargaining strengths and weaknesses? Were there other stakeholders that should be engaged?

Learning Objective

This case can be used in an elective course in supply chain management, logistics, or transportation in either an undergraduate or MBA program. It is also suitable in a course or class on negotiation. After completion of the case, students should be able to: ·Examine issues in the transportation industry and the trade-offs between using rail and using truck. ·Evaluate operational issues related to port operations. ·Use role play to practise one-on-one negotiations. ·Describe the logistics and transportation aspects of a port operations proposal..

Keywords

Logistics Negotiation Supply chain management transportation