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In landlord ports with leased terminals, the operational infrastructure in the terminal may be financed by the terminal concessionaire or the lessee under a long-term lease contract (20 to 30 years) with the legal character of a property right. This has four advantages (World Bank, 2001): ‰ At the end of the contract, the Government or port authority resumes possession of the land; ‰ Under certain conditions the property rights can be transferred to a third party, possibly subject to approval from the port authority; ‰ All buildings and equipment may be financed and owned by the operator; and ‰ The property can be used as security for a bank loan.

29 Under the basic arrangement (BOT) a special purpose company independent of the port authority undertakes a project to build or develop all or part of a port and then operates it for a specified time period. At the end of the period it is transferred back to the Government or port authority. The other arrangements described above are variations on this process. The arrangement can also be between a private port owner and another private body. Privatisation of ports has been commonplace for many years, with the global amount raised through port privatisation estimated at well over US$ 1 trillion (Baird & Valentine, 2006).

The first generation from the late 1960s was based on economies of scale using large tankers in deep water ports with large areas of land and well developed land connections. g. refineries) can become redundant or “lie fallow” through recent deindustrialisation (Pinder and Husain, 1988). Following recession in the mid-1970s, the second generation favoured light industry and activities such as warehousing and distribution. This led to the development of distriparks in places such as Rotterdam. A good example of where this type of land use change has occurred is the Distripark Botlek in Rotterdam, which was converted from a large oil storage yard into a distribution centre with a strong emphasis on chemicals (de Bruijn, 1999).

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