Transportation problems reducing income in an LBO target

We have identified an LBO target that is a Mining company producing Salt and Soda ash. However, the target has a market in a foreign country situated 861 km away. The target is doing good and has positive cashflow, however there is still room for growth as the demand is not being met. The only problem is they use a train to transport the goods and it takes very long.

Any suggestions on how we can deal with the operations to increase supply? I was thinking we can build a warehouse halfway and store the goods there.

1 Comments
 

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