Superior Grain Elevator, Inc. Case Analysis

Superior Grain Elevator Inc.

Case Synopsis

Superior Grain a company located in Thunder Bay, Ontario is one of the top three active ports. The shipping company was especially active for its grain shipment from Manitoba and Saskatchewan’s wheat belt. Superior has wanted to expand for some time now and may have been presented with the perfect opportunity. It appears that the government has negotiated a deal that should increase grain shipment for Superior.

State the Assignment Question

If Superior were to expand to a third wharf what would be the expected time of return for their initial investment?

Case Analysis

Superior Grain Elevator, Inc. a shipping company located in Thunder Bay, Ontario where the operation of the shipment of grain took place at the Thunder Bay waterfront. Superior managed to maintain a prominent position at the waterfront because of its 14 giant grain elevators which established in 1949 Superior as a subsidiary of the Saskatchewan Cooperative. Saskatchewan and Manitoba are the ports for the production of wheat belt and given that Thunder Bay was located so close to Saskatchewan and Manitoba, Thunder Bay was one of the busiest ports for Canada transporting some 15 million tonnes of grain and oilseeds throughout the season to the eastern part of Canada and some parts of the United States. Since Superior Grain was one of the shipping vessels in operation at Thunder Bay, naturally they transported a substantial amount of the grains that passed through the port.

In 1974 Superior had a change of management when it was sold to investors in Thunder Bay; however this change did not slow the company’s growth. The company made a record breaking shipment when it transported over a million tonnes in one single season. However, since that major accomplishment the company has not surpassed that figure although they have managed to maintain that level of shipment. Nonetheless, this amount of shipment was not sufficient to...