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 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). A long-term leasing agreement is one in which 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. The private operator manages the terminal equipment and labor on behalf of the owner, typically the port authority, which retains ownership of the assets and is responsible for their maintenance.
- Service contract. A private operator performs specific operational tasks using equipment and labor provided by the owner, typically 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.