Evolution Of Concession Agreement

The fixed share may represent the infrastructure costs (and, where applicable, construction costs) of the terminal, including financing costs. The structure and amount of the concession fee is an essential element of the analysis by project lenders. The variable fee is often a function of the port`s position in the market as a whole (i.e. what the market can bear) and other considerations, such as the creation of a fund for surplus dockers. An important issue is the indexation of the concession fee (TEU fee). These fees are usually expressed in US dollars, euros or another hard currency. Given that the duration of the concession may exceed 30 years, it is obvious that there is a serious risk of inflation. A concession agreement should therefore include a specific indexation clause. .

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