Port Concession Agreements

The concession agreement should define the state of the basic and operating infrastructure at the time of the transfer. Concessions can be positive when a concessionaire pays the government for concession fees or negatively if the government pays a concessionaire for the services it provides under the agreement. M The acronym BOT stands for “build, own and transfer” or “build, operate and transfer” (these terms are often used synonymously). “Ownership” is an essential element, since the main attraction of a state or port authority is that the concessionaire`s participation in the capital reinforces its commitment to the success of a project. Generally speaking, a typical concession contract will clearly define the conditions as regards: large terminal operators are increasingly trying to secure their strategic position by offering complementary terminal equipment, either on the periphery or in the hinterland. This practice is most evident when it comes to containerized loads…

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