Concession Agreement Changes

Basic structures: all land, with the exception of land subject to the right of rental. Basic structures include all pieces of stone, foundation remains, pylons, pipes, cables, scaffolding, paving stones, demarcations and works on or on the site, created, installed or built by the port authority or former users prior to the start of the lease right. The duration of the agreement is a strategic issue. It depends mainly on the respective amounts of investments made or committed by the port authority and the concessionaire. In a rental port, standard leases, which involve limited investments in the dealer`s name, are usually 1015 years. BOT-type agreements are generally concluded for a period of 2535 years with extension options. Owners` investments in construction and equipment often far exceed those of a port authority; Whether or not, both parties have an interest in having a mutually beneficial long-term relationship. This is particularly the case for the conclusion of a full concession contract with a BOT agreement. Short-term agreements (10 years or less) are suitable for tool ports or management contracts, but generally do not provide much security or stability to the port authority, nor do they provide an incentive for the dealer to improve performance or launch innovative operations. Most of the time, the current legislation of the concession contract is the national law of the country in which the terminal is located. However, some foreign lenders require that the documentation be submitted to the United Kingdom [BCJ7] or U.S.

law. Legal issues, submission to jurisdiction and dispute resolution should be addressed at an early stage of negotiations between the Port Authority and the operator, particularly in the case of a concession on a bot agreement (see Box 38). In many ports (for example. B Antwerp, Rotterdam and Hamburg), the operator is best placed to work under a simple rental contract. In a concession, with or without a BOT agreement, the lease conditions are part of the overall concession. The reference clauses in box 35 and Box 36a,b can therefore be used in both types of contracts. Leasing contracts are a number of strategic issues to consider, the most important of which are the most important: finally, the consortium can enter into a management contract with a professional operating company. The financing terms and the management contract are part of the concession documents (see Box 26). As noted above, each concession contains clauses on severance pay, regardless of the reason. The port authority or operator may terminate the concession before expiry if the other party is in a significant condition. In addition, a concession may be terminated by mutual agreement following a force majeure event such as a tsunami or earthquake. In both cases, the port authority is required to pay termination compensation to the operator, since all fixed and mobile assets of the terminal are returned to the Authority.

However, the main question is how to assess the value of assets. 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.