Fairstar Heavy Transport (A) Case Solution

The Gorgon project was a big opportunity for heavy marine transport companies because it involved transport of heavy equipment and was worth a great deal of money and reputation. Fairstar was one of the frontrunners to secure the bids, but delays from Gorgon led to losses for the company because they did not submit bids for other projects.

Representatives of the Gorgon project suggested significant changes in the service contract, and were willing to use only one vessel of the company rather than the two vessels that Fairstar was expecting. The time and effort put in Gorgon project was too great to forego, and Fairstar should definitely accept the contract, but at the agreed price. Fairstar’s plan to expend their fleet could only be possible if their pricing remains the same as before. No other big name company remains in the business and the size of the vessels along with the emphasis on, environmental safety, sort of ensures Fairstar’s deal.