Chapter $11$

Case $11-2$

Roll Out the Hydrogen Buses

Maple Leaf Motors $($MLM$)$ is a Canada manufacturer of hydrogen fuel cell products. The company has a robust North American market for its proton exchange membrane fuel cell products used by the automotive industry. The MLM heavy$-$equipment factory in Medicine Hat, Alberta, produces transit buses with hydrogen fuel cell powertrain technologies. The buses are already used across Canada, and a few have been deployed to Scotland as a pilot test. Demand for alternative fuel buses is strong in Europe and India, where there is a firm commitment to renewable energy, but a shortage of hydrogen fuel cell expertise and production capacity to build buses.

During its annual executive retreat, exporting is a major topic of discussion. After a presentation by the business development team and a similar evaluation by an industry analyst, MLM$\text{'}$s CEO is visibly energized and explains why she is ready to move forward. She relays her recent conversation with municipal transit authority leaders from Bengaluru, India and Warsaw, Poland. "They want MLM buses as soon as possible and we have the factory capacity to build them," says the CEO. "The challenge is to deliver them quickly and without damage at a reasonable cost. Glenn, get your team on this one. I want shipping solutions on my desk in $48$ hours."

Glenn Richford, MLM$\text{'}$s vice president of transportation, knows this is a big opportunity for the company but it comes with tremendous challenges. Picking the right mode and carriers that will transport the buses safely is Richford's prime concern. Choosing appropriate routes to avoid delays and theft risks is essential. Plus, he needs to work with ports that can handle buses and facilitate a smooth entry process. Needless to say, Richford got little sleep that night after the CEO gave him a short deadline for the export project.

At his staff meeting the next morning, Richford reminded his team: "These buses are valued at $$1\mathrm{.}25$ million CAD each and are $12$ meters long and weigh $9\mathrm{.}75$ metric tons. We must first get them from the plant to the point of export. Then, we need a high$-$quality international carrier to get the buses to India and Poland. And don't forget the port challenges and final delivery to the municipal transit authorities."

Turning to you, Richford says: $"$We need a plan of action for the CEO by Friday. Don't mess this up$!$ Our company's fortunes are riding on this export program."

Case Questions

What are the major problems and pitfalls that MLM faces as it tries to go global with its alternative fuel buses?

What mode$($s$)$ of transportation would you recommend to Richford as most appropriate for moving the buses domestically and internationally?

How would you route shipments of buses from Medicine Hat to Bengaluru, India and to Warsaw, Poland? Why?

What role will ports play in the movement of buses from Canada to India and Poland?