This project plan involves the location of Riordan Manufacturing’s China operations in Hangzhou. The major driving force for this decision is the fact that the company’s Chinese partners already have the necessary facilities in place. In addition, another reason for this is that the Hangzhou city is proximal to the Qiantang River. Consequently, Qiantang River is significant since the access to the river is responsible for Hangzhou Bay, which is big enough to handle the company’s shipping needs. The project is also justified by the fact that there has been an increase in the volume of production from the China plant and therefore, if container shipping companies for instance the China Shipping Container Lines are utilized. The ports in Shanghai and Hong Kong are utilized by container shipping companies. However, Shanghai port, which is 180 kilometers away from the current location, results in extra logistical steps. The products of the company are transported to a port located on Qiantang River before being loaded into containers for shipping. The shipping containers are then loaded onto barges and taken to Shanghai port. At Shanghai, the shipping containers are offloaded and transported to another place of port where final loading takes place before delivery to final destinations. The other option is to use the truck to transport the products to the Shanghai port. There, they will be loaded into shipping containers and onto the ships directly for delivery into their final destinations. However, trucking companies charge the same price as local shipping companies. Therefore, if the China operations are relocated to the city of Shanghai, there will be great cost savings. Besides, there will be more sufficient urban infrastructure, putting the company in a better market position and the company’s Chinese products can be shipped throughout Europe and Asia.
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