There are several forms of port terminal privatization (not to be confused with port privatization).
- Sale. The outright sale of a terminal facility to a private or private operator which assumes all responsibilities of management, repair, and maintenance. The condition is that the facility retains its function and cannot be converted to other uses without the approval of the regulatory agency.
- Concession. A long term lease (20 to 30 years) by a government or port authority to a public or private operator for providing specific port services, such as terminal operations or nautical services (e.g., pilotage and towage). The concessionaire undertakes capital investment to provide and expand terminal infrastructure and superstructure.
- Capital lease (finance lease). Long-term leasing agreement where the lessee rents the terminal for a defined period of time. The lessee is expected to provide maintenance but not to invest in infrastructure and superstructure.
- Management contract. Private operator manages the terminal equipment and labor on behalf of the owner (usually the port authority), which retains ownership of the assets and which is responsible for maintenance.
- Service contract. Private operator performs specific operational tasks with equipment and labor provided by the owner (usually the port authority). In contrast, the port authority retains ownership of the facility and equipment.
- Equipment lease. A private entity leases equipment to the terminal operator and provides maintenance services. This enables the operator to amortize the costs of new equipment but increases the cost of ownership.