Containerization and New South Wales Essay

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4426 APRIL 19, 2012 RICHARD G. HAMERMESH SUNRU YONG Meli Marine It was past midnight, but David Tian, CEO of Singapore-based Meli Marine, could not sleep. The next board meeting was just two weeks away in early February 2008. Edwin Chang, the founder of the company and chairman of the board, had called earlier to hear Tian’s assessment of a potential acquisition. “This could be the biggest turning point in Meli’s history,” Chang had said. “Are we ready to become a global player?” Tian had to admit that he had not yet reached a conclusion. The acquisition under consideration was of the vessel assets of an indirect competitor, Teeh-Sah Holdings. Tee-Sah operated a container carrier business in the trans-Pacific, Asia-to-North …show more content…

There are five key segments in the container-shipping value chain: container delivery, shipment origination, vessel operations, terminal operations, and inland delivery (see Figure A for an overview). Figure A Container Shipping Value Chain Container Delivery K ey Activities • Ownership of containers • Storage and maintenance Shipment Origination • Shipment routing • Capacity procurement Vessel Operations • Terminal control and operations • Control of trucks and railroads • Maintenance and sailing of vessel • Container handling and transshipments • Container handling and transshipments • Third-party terminal operators • Railroads • Customer service, billing, and tracking • Manufacturers • Freight forwarders • Container carriers • Leasing companies • Container carriers • Third-party charter companies • Container carriers Inland Delivery • Ownership of vessel • Repositioning Competitor types Terminal Operations • Captive terminal operators • Container carriers • TL and drayage truckers • Container carriers (limited) Industry players varied in their degree of integration across this value chain. For example, China International Marine Containers (CIMC) focused exclusively on

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