A common area for concession agreements between governments and private companies involves the right to use certain parts of public infrastructure, such as railways.B. Rights can be granted to individual companies – which creates exclusive rights – or to several organizations. As part of the agreement, the government may have construction and maintenance rules as well as current operational standards. Insurance for employees, equipment and vessels covering injury and damage within the concession area is usually defined in a concession contract. In addition, the operator should exempt the port authority from a large number of incidents related to port operations and other events (see Box 42). 2.4 Specialty Trade/News and Gifts Other topics for specialty trade/News and gift concessions include: â¢ Definition of product categories â¢ Baskets and kiosks 2.4.1 Definition of product categories As dealers added more and more brand names to their portfolio, they could increasingly offer not only specialized brands, but also branded items in the gift sections of kiosks. This makes the classification of certain products a challenge. “Gifts usually bring other rent percentages than âSpecialty Retail.â Airports are encouraged to describe precisely which product categories are expected and in which places (the RFP process should reflect these desires). 2.4.2 Shopping carts and kiosks Many airports complement their retail offerings with baskets of goods where there is not enough passenger space or exhibition to support a complete retail unit. Product cars are sometimes used to sell individual special products (e.g.B.
Rosetta Stone voice software). Some airports are starting to offer electronic vending machines that sell electronics, cosmetics and even medical care without a prescription. Concession contracts for rail cars and kiosks generally have a shorter duration, reflecting reduced investments and different lease structures to reflect margins. Similarly, in order to adapt to changing market preferences, agreements relating to this type of operation generally require flexibility provisions for the conversion of the product mix with airport authorisation. 2.5 Passenger services Airports offer different passenger services. In the past, these services were limited to shoe shiners and business centers, but these services now range from battery charging stations and massage stations to full-service spas, pharmacies, and medical centers. These services typically have a different range of rent levels and can have either percentage rents or a fixed rent amount, depending on the service and level of investment required. 24 Guide to the Development and Management of Airport Contracts After the expiry of the concession period, facilities built on the site and all titles transmitted to the operator under a B(O)OT agreement) will be transferred to the Port Authority.
In some contracts, the land may need to be reconverted to its original condition, which could mean that the operator will have to demolish the structures and facilities built on the site for the duration of the concession. . . .