PRINT THIS PAGE First-class returns from transportation
03/09/2001. Source:McKinsey Quarterly. Bernard L. Bot, Pierre A. Girardin, and Moira F. Goulmy
Vertically integrated transportation companies are sailing into the wind. According to this article from McKinsey Quarterly one option for transportation companies is to undertake a kind of horizontal consolidation in which they find the one 'sliver' of the business that they are best at and then, within that sliver, to broaden out across the transportation sector and beyond. The global transportation sector — from passenger railroads to container-shipping companies — is synonymous with low returns. Even during the past decade of strong economic growth, the sector's total return on assets hovered at just around one percentage point above its cost of capital. What options remain to increase flagging returns?
Click here to view full article (Free registration required)
Extracted from The McKinsey Quarterly, 2001 Number 3
The McKinsey Quarterly, a journal in print and online from McKinsey & Company, featuring the latest thinking on business strategy, finance and management
Copyright © 1992-2001 McKinsey & Company, Inc.
|
