Concession agreement

A concession agreement is the long-term contract under which a landlord port authority grants a private operator the right to develop and run a terminal, in exchange for rent, royalties or throughput fees, and committed investment. Terms commonly run 25 to 50 years to amortize the operator’s cranes and yard equipment, and include performance guarantees, minimum volumes, tariff rules, and hand-back conditions. The concession model spread container terminal operations worldwide to global operators while keeping the underlying land in public ownership.