Concession Agreement
Gridlync land and infrastructure glossary.
A concession agreement grants a private party the right to operate a facility or service on land owned by another, often a government or port authority, usually with rent plus a share of revenue. Terms can run for many years. The concessionaire typically invests in and operates the facility, paying a base rent plus a percentage of revenue, and assumes operating risk over a term that can span decades. They are common for ports, airports, toll roads, and other public assets.
Ports and public-asset operators manage many concessions with revenue terms. Gridlync keeps each concession’s rent, revenue share, and renewals organized.
Example
The Port of Marlow grants Blue Harbor Terminals a 25-year concession to run a container berth, with Blue Harbor paying $2 million annual base rent plus 6 percent of throughput revenue and funding new crane equipment itself.