Under a concession, the long-term use and use of port land and assets is transferred to individuals through tenders. The process for best achieving this transfer must be both efficient and transparent. This requires a succession of steps that are logically linked and that lead to a concession of terminal activities in the best possible conditions for the government and the port authority. The steps are explained below. If the state wants to improve port services by introducing the expertise and financing of the private sector. There appears to be uncertainty as to which assets to transfer and whether those assets will be transferred or leased. As this port needed a wider hinterland than the host country, it had to be connected to the rehabilitation of the railways. It is essential that a port authority has access to up-to-date, relevant and direct information on all aspects of port operations, including the operation and handling of cargo. The port authority should be informed without delay of any incident occurring in the port area so that it can take appropriate action. The agreement provides for an obligation for the operator to provide such information (see Box 45).
In addition to granting concessions or transferring ownership of ports, governments can adopt a leasing strategy. Rental ports derive a significant part of their revenue from leases. Among potential hire-purchase agreements, there are many methods of determining fair value. For example, the basis of the carrying amount of assets, net of depreciation or replacement value, or the use of the continuation method to calculate the business` lost future cash flows. It is clear that fair value contractual clauses are an important issue for negotiations between the port authority and the potential operator when entering into a concession contract. The method of determining fair value should be agreed upon and included in the concession contract. The question must arise as to whether the Civil Code grants adequate protection to the concessionaire, given that there are a number of “agreements to be agreed”. Concession area: the port areas within the port of [name], known as [name], described in more detail and delimited in Annex [point] to this Agreement.
Some port authorities also try to attract customers to their port facilities by facilitating or co-financing terminal facilities located outside their port area. This broader view of the role of a port authority has the potential to influence traditional port management structures, particularly in ports structured according to the lessor model. . . .