Taxing times: municipalities must see things in perspective

Another issue facing ports today is addressing the changing dynamics of how municipalities tax their landholdings. Many regulatory bodies are discovering that their statutory valuation methods and ratings or property assessments have not been, in their opinion, generating sufficient tax revenue based on what they believe the port is worth. Ports need to take an active role in presenting and defending their case in order to strike a proper balance between the needs of the regulatory taxing body and their mandates, such as generating exports, jobs and maintaining a reliable and efficient point of distribution for exports and imports plus numerous other contributions to the community. All this is more easily accomplished when accurate property data is available.

These are but a few issues ports face today from a property standpoint. By meeting these challenges ports will open up numerous opportunities for themselves such as:

substantially increase the overall value of a port through maximising the value of its property assets increase a port?s competitive advantages to better retain and attract clients by developing facilities in demand by them be able to better integrate landholding to create a more efficient and compressed overall supply chain through being able to finance the development of its hinterlands develop additional revenue streams and effectively release equity from their land holdings.

A port today can no longer afford the luxury of looking at its property assets as just something “required to do business”. Yes it is indeed this, but it can be so much more. Today’s competitive marketplace is penalising every port which is not maximising the value and use of its land holdings more than their operators and owners realise. The time has arrived to manage port properties with the same professional disciplines as have been applied to the overall operation of the port for years.

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