05 Déc 2020

Concession Agreement For Port

Non classé No Comments

Parties under a full concession agreement are usually made up of a port authority and a single sponsor or a consortium of sponsors (often referred to as a « special vehicle company » or « SPC »). The consortium may not necessarily be the same as the operator, but it may involve the operator as a member of the consortium. If the concessionaire obtains the right to build essential parts of the operating facilities as well as operational port infrastructure (mainly docks and focal operating work), a concession could be combined with a BOT agreement. In the case of legislation that qualifies part of the infrastructure as public, the concession may be considered a public licence. However, the part of the concession that constitutes a public licence is generally non-negotiable. As a general rule, the national authority granting the licence reserves the right to unilaterally change the terms of the licence. The main BOT agreements combine many variations in long-term leasing with investment commitments agreed in advance. In port reform, the most commonly used models are BOT, BOOT (build-own-operate-transfer), BTO (build-transfer-operate) and WBOT (wraparound BOT). These variations are described in more detail below and later in this module in BOTs and Construction. Typically, the operator acquires leasing rights and obligations when he takes control of an existing facility as part of a concession agreement.

As a general rule, the concession agreement limits the use of premises leased exclusively for port purposes and for the transfer of certain cargoes. Within these limits, an operator is free to develop the activity. Detailed restrictions on handling on the terminal should be avoided, with the exception of hazardous and polluting cargoes. Other port facilities cannot simply be frozen as individual positions. The main ones are assets such as breakwaters, piers, connection channels, intraportal routes and other common areas. However, these assets may be part of a master`s concession contract or an extensive privatization program. Concession territory: the port areas within the port of [name], known as [name], as described and delineated in more detail in the annex [point] of this agreement. The British experience has therefore yielded very mixed results and provides little argument for supporting significant privatization (sale of port land and transfer of all public functions to the private sector) when other less radical reforms can achieve the same objectives. Investments and capacity calculations are based primarily on traffic and throughput forecasts. In the case of a BOT agreement that requires significant dealer expenses, the port authority (or the national government) may commit not to license, promote or start another competing terminal (or terminal with more than one specified capacity) in a nearby port area. If new capabilities were created unexpectedly, the viability of a project could be compromised. There is often, especially in small ports, only room for one or two terminals that transform a particular commodity.

If the port authority is too concerned about intraportal competition, terminal operators may face fierce competition, which could lead to the bankruptcy of some of them at a time when governments want to encourage strong private sector participation in the port sector (see Box 28).

Comments are closed.