GlossaryEN1 min readUpdated: Jul 18, 2026
Concession (transport and port sector)
A concession is the time-limited, contractually regulated transfer of an operating or usage right from the public sector to a private company—in the transport sector typically for operating a port terminal, a rail line, an airport, or a toll road.
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Source: https://en.wikipedia.org/wiki/Concession_(contract)
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A concession is the time-limited, contractually regulated transfer of an operating or usage right from the public sector to a private company—in the transport sector typically for operating a port terminal, a rail line, an airport, or a toll road. The concessionaire invests in expansion and operation, bears the economic risk, and recovers its costs through usage charges, while the facility remains state-owned. Concessions are a core element of public-private partnership models with which governments accelerate the expansion of port infrastructure and hinterland connections without having to bear the investment alone. For freight forwarders and shipping lines it matters who operates a terminal, since the concessionaire, handling tariffs, and service quality influence the choice of entry and exit port. Terms of 20 to 40 years are common. Not to be confused with a licence, which merely permits an activity without transferring an exclusive right to operate a specific facility.
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