Surface Transport & Logistics

L.E.K. combines rigorous analysis and deep industry understanding to help senior executives develop and implement innovative, growth-oriented business strategies. Our diverse services cover core services in Strategy, Mergers & Acquisitions (M&A), Shareholder Value Management, Operations & Organization, and Marketing & Sales, and include a number of sector-oriented solutions:

Service	Sample Service Components
Market and Competitive Review	Analysis of major market drivers Assessment of market size, growth rate and attractiveness Competitive positioning review Competitor performance benchmarking New revenue opportunity identification
Pricing and Commercial Strategy	Customer trade-off research, willingness to pay and price elasticity analysis Yield management Analysis of competitor price structure, price development and apparent pricing strategy Fares policy advice Growth opportunity assessment
Commercial Due Diligence	Evaluation of end market dynamics Competitive position assessment Operational performance review Integration synergies projection Detailed investment thesis development
Concession Bid Development	Historical revenue development analysis to derive franchise-specific forecasting parameters Customer research, including focus groups and stated preference games Analysis of inter-modal competition and the impact of open access operators Financial model development Passenger revenue model development and record of assumptions Crowding diagnostics and modeling of the impact on demand Pricing strategy Risk analysis Profit margin recommendations
Business Plan Development	Market dynamics review Assessment of market demand Revenue potential forecast Business model development
Dispute Resolution	Short- and long-term revenue loss assessment Claim quantification Submission materials preparation Expert witness and challenge
Cost Benchmarking	Quantitative and qualitative analysis of raw unit costs Definition of structural factors influencing cost differentials Production of normalized unit cost and like-for-like comparison analysis Recommendations for cost reduction
Privatization/ Commercialization Support	Alignment of business structure with government objectives Development of a contractual structure that optimizes risk allocation Creation of an incentive structure that enables effective and profitable operation for all parties
Regulatory Submissions	Assessment of commercial implications of new regulation Preparation of competition investigation submissions Commercial market analysis underpinning pricing and cost control period reviews
Policy Development	Assessment of value for money delivered by policy objectives Advice on new policies and/or policy revisions required to meet objectives Analyzing business and end-user implications of policy changes
Performance Improvement	Identifying initiatives required to enable profit and cash improvement through: Incremental revenue growth Cost reduction Investment scale and timing Day-to-day support for businesses to drive performance improvement actions
Major Project Support	Scoping and options assessment Business case development and management of approvals process Procurement method Financial modeling RFT preparation, bid evaluation and negotiation support