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Product cover image for China Railway in Gabon: Project-Based or Continuous Cooperation?

China Railway in Gabon: Project-Based or Continuous Cooperation?

Su Liu, Paul W. Beamish, Shifang Wei

Product #:W45712
Supplier:Ivey
Discipline:General Management, Strategy
Setting:Gabon, 2024
Details:Case (PDF) • 9 pages • 2025-07-17

Subjects:

Public-private partnershipsLeadership and managing peopleManagementStrategy

Industries:

Transportation and distribution

Geography:

GabonAfrica
Your Price:$10.54

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In July 2022, China Railway Rolling Stock Corporation Limited (CRRC) shipped 220 open train wagons to Gabon, a resource-rich country in Central Africa and long-term ally of CRRC. Shandong Locomotive & Rolling Stock Co. Ltd. (CRRC Shandong) was a subsidiary of CRRC that specialized in the production of railroad vehicles. Beginning with the delivery of 94 railroad wagons in 2015, by 2024 CRRC Shandong had supplied new vehicles to Gabon every year, via a project-driven cooperation model. How had CRRC Shandong realized sustainable development in Gabon? Based on the project experience in Gabon, what strategic initiatives should CRRC Shandong take in Gabon in the future? Could this model be applied to other African countries?

Learning Objectives

This case is suitable for undergraduate and graduate students majoring in international business, strategy, or marketing. It explores the localization strategy and international expansion of multinational companies, focusing on how firms enter foreign markets, adapt their strategies to local needs, and manage complex operational challenges. The case also highlights the importance of understanding market dynamics, cross-cultural management, and long-term business sustainability in emerging markets.

After working through the case and assignment questions, students will be able to do the following:
  • Understand the features of the Gabonese market and CRRC’s considerations when entering this market
  • Evaluate the strengths and weaknesses of using the CRRC Gabon office as a foundation for regional growth
  • Better understand the various models (including public–private partnerships) common in infrastructure development
  • Discuss the future trajectory of CRRC’s strategic growth in the African market
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Case Study: China Railway in Gabon: Project-Based or Continuous Cooperation? (English version) | Ivey Publishing