Advancing port sustainability: Essentials for a model concession agreement framework

Abstract

Concession agreements (CAs) in the port sector are designed to establish mutually beneficial arrangements for involved parties. They serve as catalysts, enabling ports to attract adept private investors and secure requisite funding to enhance port infrastructure, superstructure, and service quality. Concurrently, the imperative to mitigate negative externalities and promote sustainable practices in port organization and development remains paramount. In this context, the paper explores the nuanced landscape of CAs, specifically focusing on the urgent need for an innovative framework that integrates sustainability within port organization, operations and development. Drawing from existing academic discourse and field evidence, it systematically identifies, examines, and analyzes fundamental requirements and key factors that should be considered in CAs, in line with sustainable development and proposes a reference framework for an ideal Concession Agreement model. Despite evident strengthening of sustainability implications in port concessions, significant room for improvement persists. Nevertheless, dynamics in the field create a certain optimism for the future.