Concession irregularities not confined to bidders

In a concession context, we would also draw your attention to the opening editorial commentary in Q4 2026 issue – the Viewpoint. Here the point is highlighted that not all concession processes are offered in a structurally sound way or without being subject to corruption from the issuer end of the business. It is not always parties on the outside attempting to manipulate the process to gain a particular result it can be the issuing authority that structures a process to gain a particular result or which puts together a process which is flawed and open to manipulation. Clearly, there are still big lessons to learn in this area.

AFRICA

Port Autonome d’ Abidjan Reviews Concession Merger

The Port Autonome d’ Abidjan is reported to be reviewing the feasibility of merging the two container facilities Abidjan Terminal and Cote d’Ivoire. Following acquisition activity, both terminals are now operated under concession by Africa Global Logistics (AGL), a subsidiary of Mediterranean Shipping Company. As well as aiming to secure greater efficiency overall, it is anticipated any merger would see alignment on concession duration periods. The port authority is also expected to benefit in terms of greater concession fees.

Kenya Announces US$1.7 Billion Port Concession Programme

Kenya is once again seeking to offer to the private sector port assets in Mombasa and Lamu. Such initiatives have previously faced strong opposition from unions and other parties to the extent that they have become a hot political issue – as was, for instance, the case prior to the 2022 general election.

The current initiative is wide-ranging and envisions two batches of concessions being offered with the first phase covering four assets at Mombasa and Lamu ports – Mombasa berths 11 – 14, Mombasa Container Terminal 1, Lamu Container Terminal berths 1 – 3 and the Lamu Special Economic Zone. The second phase will cover Mombasa Container Terminal II, berths 23 and 24, Mbarakai Wharf, cargo berths 1 – 5 and 7 – 10 plus the inland container depots in Embaksai and Naivasha.

Underpinning the sale of both batches of assets is the idea of selling them as a portfolio of assets and not allowing negotiations for individual terminal assets. It remains to be seen what the take-up is on this proposition which has been floated before in a more limited way and not enjoyed great popularity.

The two phases are expected to generate US1.17 billion in inward investment excluding a US$60m contribution from the Kenya Ports Authority under phase one.

Luanda Concession Extension

DP World has extended its concession in Luanda, Angola by 10-years to 2051. Allied to this it has announced an expansion of the terminal’s operating area from 27 to 37 hectares, a quay extension to 830m from the 610m and an overall US$90m investment programme. Equipment purchases are also planned.

Transnet Corporatisation Announced

South Africa is to corporatise the Transnet National Port Authority (TNPA), the landlord for eight South African ports. Practically speaking, TNPA will become a standalone state-owned corporation independent of Transnet SOC Ltd.

AMERICAS

Brazil Concession Programme Slippage…

2026 was originally meant to see 18 port tenders and five concessions launched for inland waterways in Brazil. Today’s reality, however, is that out of this programme the only port auctions completed so far are for POA26 at Port Alegre, MCP01 at Santana and NAT01 at Natal. The port concessions that remain to be offered are for some of Brazil’s major port assets including Tecon Santos 10.

Waterway-based projects address moving access channels onto a concession basis covering dredging, navigation aids and vessel traffic management. These projects span both local and federal-based projects.

…but Green Light for Fortaleza Box Terminal Auction

The auction for the designated container terminal site at the Port of Fortaleza is scheduled for 9 of December. The site is said to possess a container storage capacity of 9080TEU with this being offered on the basis of a fixed monthly payment to the port administration together with a variable payment for per tonne of cargo handled. The highest bid across these criteria will be the winner.

DPW in talks for Callao Extension

Terminal operator DP World is engaging with Peru’s Ministry of Transport & Communications to secure a 30-year extension to its Callao container terminal concession, up to 2066. As part of the negotiation DPW is offering a US$1.47 billion investment programme covering terminal and offtake infrastructure as well as equipment and IT systems purchases.

Colombia Concession Overhaul

President Abelardo De La Espriella has announced an overhaul of Colombia’s port concession arrangements. Target areas for upgrade include: proposals aimed at validating investments in the last five years of a concession; a broadening of the focus on infrastructure that can be included in a concession – for example, interfacing road, rail and waterway infrastructure and creating a National Register of port concessions.

EUROPE & UK

Associated British Ports Sale

The two funds which together hold a controlling stake in Associated British Ports (ABP), CPP investments and OMERS, have agreed terms to sell their respective 33.9% and 30% stakes in ABP to a fund managed by IFM Investors. ABP operates 19 port facilities round the UK and is estimated to handle approximately 25% of annual UK Seaborne trade. Completion of the transaction is expected in the first half of 2027.

Brindisi Offers Multipurpose Terminal

What is termed “a preliminary market consultation” is being implemented by the Italian port of Brindisi, to identify potential operators and investors for a new multipurpose terminal located at the Costa Morena breakwater. The market consultation is seen as a first step towards a concession process designed to expand commercial activities at the port.

CMA-CGM and Stonepeak Deal Finalised

Liner-Logistics Group CMA-CGM and so-called alternative infrastructure investment group Stonepeak have reported the successful conclusion of the formation of their previously announced Joint venture which has been branded United Ports. Stonepeak has invested US$2.4 billion to acquire a 25% stake in United Ports – which holds existing CMA CGM port assets – with CMA CGM retaining a 75% ownership stake and full operational control of the joint venture.

Dunkirk Selects TIL for New Terminal

Grand Port Maritime de Dunkerque has awarded a concession for a new container terminal to Terminal Investment Limited (TIL), a subsidiary of liner operator MSC. The new terminal will be located adjacent to the existing facility, operated by Terminal Link (CMA-CGM), and will possess a 1000m quay and 68ha terminal area. Construction of the quay has been underway since May this year and the terminal is expected to open for business in 2029.

Rotterdam Omega Talks on Again

The Port Authority of Rotterdam has announced that it is again entering negotiations with Hutchison Ports and TIL, the ports arm of liner operator MSC concerning Omega, the new 6 – 7m TEU/yr Maasvlakte terminal. The port authority is seeking clarity regarding the status of plans by Hutchison Ports and TIL to jointly establish the Omega mega-terminal, which as proposed would incorporate existing terminal capacity including the northern part of Hutchison’s ECT Delta Terminal and land from its Delta II facility. Essentially, the port authority wants to ascertain if the project is still live with Hutchison and TIL and if it isn’t to offer it again to the market early in 2027. The potential purchase by TIL and partners of the Hutchison Port’s portfolio is an allied relevant issue of concern to the port authority and port unions.