Monolith
12Dec/20Off

Long Term Concession Agreements

The contractual form of a concession contract can also be used to grant transport rights for a longer period of time. An example is the Model Concession Agreement (MCA) for PPP in container Train Operation Concession are sometimes used to take advantage of the benefits of other nations. For example, foreign countries and companies forced China to make various concessions in the 19th and early 20th centuries. These concessions have given foreign companies the right to develop and operate railways and ports within China. In addition, citizens of other countries have often appreciated extraterritoriality as part of their concessions. Extraterritoriality meant that foreign laws and tribunals settled disputes between Chinese and foreigners in concessions. Of course, the decisions of these courts have tended to oppose Chinese businesses and consumers. A concession or concession contract is the granting of rights, land or property by a government, a local authority, an entity, a natural person or any other legal person. [1] The duration of the agreement is a strategic issue. It depends mainly on the respective amounts of investments made or committed by the port authority and the concessionaire. In a rental port, standard leases, which involve limited investments in the dealer`s name, are usually 1015 years. BOT-type agreements are generally concluded for a period of 2535 years with extension options.

Owners` investments in construction and equipment often far exceed those of a port authority; Whether or not, both parties have an interest in having a mutually beneficial long-term relationship. This is particularly the case for the conclusion of a full concession contract with a BOT agreement. Short-term agreements (10 years or less) are suitable for tool ports or management contracts, but generally do not provide much security or stability to the port authority, nor do they provide an incentive for the dealer to improve performance or launch innovative operations. Example 4: Argentina - Contrato de Concesién Ferroviaria (430/94) and Addenda (167/01), Grupo de Servicio 6, Lenea Belgrano Norte (Spanish) - Concession contract between the Argentine state and a private entity (Ferrovias Sociedad Anonimas Concessionarios) on the Belgrano Norte railway line (from Villa Rosa to Retira - Buenos Aires Metropolian Area) with surcharge. The concession concerns a railway line for the public transport of passengers (concesién de servicio péblico).

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