Re-writing the concessioning small print
It has become increasingly clear in the last two or three years that there is a growing requirement to consider in greater detail the aspect of exit arrangements from a terminal concession or a similar contract that gives management and operating rights to a specific party for a given port facility. Indeed, PS highlighted this requirement some time back but today it has been thrown firmly under the spotlight by the actions of the Port Authority of New York and New Jersey (PANY& NJ). The Authority took the controversial step of stating that it required a transfer fee of $84m following the sale of DP Worlds Port Newark Container Terminal concession to the AIG Investment Group.
It has become increasingly clear in the last two or three years that there is a growing requirement to consider in greater detail the aspect of exit arrangements from a terminal concession or a similar contract that gives management and operating rights to a specific party for a given port facility. Indeed, PS highlighted this requirement some time back but today it has been thrown firmly under the spotlight by the actions of the Port Authority of New York and New Jersey (PANY& NJ). The Authority took the controversial step of stating that it required a transfer fee of $84m following the sale of DP Worlds Port Newark Container Terminal concession to the AIG Investment Group.