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Etihad Rail Company is planning to implement a mega infrastructure project in the United Arab Emirates (UAE). They have included freight rail system as part of the 2030 Abu Dhabi economic vision and the UAE national Charter 2021. The plan is to link the UAE’s main cities via the Gulf Cooperation Council (GCC) border. This ambitious project presents a formidable task for the Etihad Rail Company and the region as there is no previous railway history of this kind. The project requires coordination of rail standards from East of Ghwefatet and the Northern Emirates cities and will ultimately be combined with the Western Saudi Arabia borders. The transportation system in the region will be improved greatly with the introduction of a cargo and passenger railway system in addition to the current road system and other means of transportation. The Etihad railway network is the first infrastructure project in the UAE and it will bring economic, strategic, social and environmental changes to the country. This case aims to present an overview of the strategic management dimensions of the Etihad Rail and the processes involved. This case will analyze whether Etihad’s top management team should make a decision to focus only on freight rail or to include passenger transportation as well. Many questions will be addressed in this paper such as the following: What steps should Etihad take in order to start passenger rail? Will economical, strategic and environmental aspects affect it? And if so, how? The case will focus on the analysis of the different aspects of Etihad Rail by using strategic management tools as guidance for implementation and determining its success factors.

The freight transport market in the UK has been increasing at a rate of between 1 and 2% p.a. since the mid 1960 a s measured by total ton‐miles and it is worth some £1,500 million annually. The freight business of British Rail, which accounts for approximately 20% of the total market size is of particular importance to the financial viability of the railways as a whole, owing to the fact that freight traditionally has generated about 40% of the revenue of British Rail and difficulty has been experienced in operating it at a sufficiently profitable level to provide for essential re‐investment in the business. This lack of profitability caused consideration to be given to the possibility of withdrawing altogether from the market for freight traffic in less than train‐loads but this was rejected on the grounds that freigh traffic shares assets such as track, signalling, locomotives and manpower with other rail services. A withdrawal from the smaller “wagon load” traffic would reduce traffic by nearly 50% and lead to an under‐utilisation of assets thus weakening overall rail profitability.

The Swedish government is likely to implement longer and heavier road freight vehicles, so-called high-capacity vehicles (HCVs), in the near future. The purpose of this paper is to analysis the expected effects on the whole transport system regarding tonne-kilometres, vehicle-kilometres on road, CO₂ and socio-economics with three possible implementation strategies (HCVs on all roads, a designated road network and a designated road network with a kilometre-based truck charge) and two vehicle types (74 t/25.25 m and 74 t/34 m).

Calculations are based on two well-established scenarios for transport development in Sweden. Changes per tonne-kilometre are modelled for ten product groups with considerations taken to their transport networks. Socio-economic effects are analysed using the net present value rating method over a 40-year period.

The study shows the increase in demand for transport and the modal shift, from rail and sea to road, in terms of tonne-kilometres, vehicle-kilometres and CO₂ emissions for three implementation strategies of HCVs in two scenarios. All implementation strategies show a positive social net-benefit with the introduction of HCVs.

The results reveal potential benefits to the implementation of HCVs. The results are limited by possible over/under-estimations of effects considered in the calculations, due to uncertainties and assumptions.

The results highlight expected levels of modal shift and induced transport for different HCV implementation strategies and how they depend on transport and climate policies and the expected growth of tonne-kilometres.

The calculations consider socio-economic effects, particularly from increased CO₂ emissions due to modal shift and induced traffic, which is lacking in previous studies. To balance conflicting economic and environmental goals, the findings indicate that the implementation of HCVs could be accompanied by other policy measures. The findings are based on the Swedish context, but the model can be adapted to other countries or regions and to study other freight transport reforms.

In the EC, Combined Transport (CT) is generally regarded as the most promising market for external logistics suppliers. EC deregulation policy makes market entry a strategic option both for mega carriers and big shippers. Concentrates on access problems to this market. Shows that liberalization does not automatically mean lower access barriers. The semi‐deregulated CT industry presents strong entry barriers due to low profitability and a high level of control over upstream and downstream resources by established main actors. Therefore the set of CT main providers, the “railway‐league” and the “UIRR‐forwarder‐league”, remains stable. The situation will probably not change as long as (1) the low price level of trucking is accepted by environmental and transport policy makers and (2) access to relevant resources is nationally monopolized. Only a combination of measures designed to rectify both of these market imperfections, not a succession of isolated actions, will support further development of CT. The consequence of its fast liberalization, without higher returns on capital, could be a serious crisis for the whole industry.

The subject areas are strategic management, transportation management and business management.

This case is useful for undergraduate and postgraduate level students majoring in strategic management, transportation management and business management.

Etihad Rail Company is planning to implement a mega infrastructure project in the United Arab Emirates (UAE). They have included freight rail system as part of the 2030 Abu Dhabi economic vision and the UAE national Charter 2021. The plan is to link the UAE’s main cities via the Gulf Cooperation Council (GCC) border. This ambitious project presents a formidable task for the Etihad Rail Company and the region, as there is no previous railway history of this kind. The project requires coordination of rail standards from East of Ghwefatet and the Northern Emirates cities and will ultimately be combined with the Western Saudi Arabia borders. The transportation system in the region will be improved greatly with the introduction of a cargo and passenger railway system in addition to the current road system and other means of transportation. The Etihad railway network is the first infrastructure project in the UAE, and it will bring economic, strategic, social and environmental changes to the country. This case aims to present an overview of the strategic management dimensions of the Etihad Rail and the processes involved. This case will analyze whether Etihad’s top management team should make a decision to focus only on freight rail or to include passenger transportation as well. Many questions will be addressed in this paper such as the following: What steps should Etihad take to start passenger rail? Will economical, strategic and environmental aspects affect it? And if so, how? The case will focus on the analysis of the different aspects of Etihad Rail by using strategic management tools as guidance for implementation and determining its success factors.

In this case, the students can learn and understand the purpose of commencing cargo rail projects in the region; discuss the mechanisms which help in promoting sustainability and the business growth of Etihad Rail; and identify the challenges and issues freight rail may face in terms of legal, economic and environmental aspects and identify and alternative solutions.

Teaching notes are available upon request.

CSS 11: Strategy.

In this chapter, we will review the history, deregulation, policy reforms, and airline consolidations and mergers of the Chinese airline industry. The measurement of airline competition in China’s domestic market will also be discussed. Although air deregulation is still ongoing, the Chinese airline industry has become a market-driven business subject to some mild regulations. Then, we will review the impressive development of the high-speed rail (HSR) network in China and its effects on the domestic civil aviation market. In general, previous studies have found that the introduction of HSR services has a significant negative impact on airfare and air travel demand in China. The rapidly expanding network of HSR has important policy implications for Chinese airlines.

Congestion at Ghana’s main seaports is a problem that has received much attention recently. This is as a result of continuous increase in containerized cargo. To increase the capacity of Ghana’ seaport, the Ministry of Transport through the Ghana Shippers Council initiated the Boankra Inland Port Project. The aim of this paper is to assess the feasibility and economic effects of implementing the Boankra Inland Port as a solution to reduce congestion at the main seaports, as well as reduce transportation cost.

The location of the inland port was assessed using the gravitational model. Data for the gravitational model are distances from the main seaports in Ghana and Boankra Inland Port to major hinterland destinations and population of the destinations. Also, 210 respondents were selected and interviewed on contribution of the dry port concept to the economy and transportation management in Ghana.

The results of the gravitational model support the location of Boankra as an inland port. A further comparison between Tema and Takoradi shows that Tema has a better location as a distribution center than Takoradi.

Although Tema and Takoradi are the main seaports in Ghana, the implementation of the Boankra inland port will reduce the transportation cost for cargo with hinterland destinations, therefore making it a rational and cost-efficient location for transit transportation.

This paper is among the first significant attempts to evaluate the suitability of inland port implementation in Ghana.