Canaan Group: Port Metro Vancouver Container Trans-Load Service

Case Solution

P. Fraser Johnson
Ivey Publishing ()

In January 2016, the president and CEO of the Canaan Group in Richmond, British Columbia, evaluated plans for a proposed transshipment facility located inland from Port Metro Vancouver. The transshipment facility had the potential to simultaneously offer a more profitable transportation alternative for exporters and significantly reduce greenhouse gas emissions in the lower part of the continent. Despite the potential opportunities, three major hurdles had to be overcome before the new operation could be launched successfully. First, cooperation between exporters and their shipping companies was necessary to ensure proper container handling. Second, a Canadian Pacific Rail agreement was essential to provide services at a competitive price. Third, successful negotiations for a long-term lease of the proposed site were required to justify the investment required. The Canaan Group president reviewed the data from a full pilot study and wondered what his next step should be. With which stakeholders should you start negotiations? What were your strengths and weaknesses when negotiating? Were there other stakeholders who should be involved?

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