Dr. Paul E. Kent’s latest installment in his For the Beauty of Logistics series is Part 2 of his discussion about the merits of re-tendering port concessions or simply renewing them.

(For those who missed it, Part 1 is available here: https://www.megconsulting.com/performance-based-port-concession-extensions-a-pragmatic-framework-for-renewal-in-colombia-and-beyond/).

Part 2 moves the discussion from economic reasoning to institutional design. If performance-based renewal is to be used responsibly, the key question is no longer whether to renew, but how should a renewal framework actually be structured? Dr. Kent outlines a practical framework built around:

• Objective, auditable performance criteria
•       A structured KPI eligibility matrix distinguishing operator performance from system effects
•        Procedural safeguards, including independent verification and defined review timelines
•        Commercial recalibration mechanisms (royalties, CAPEX, ESG obligations)
•        Clear conditions under which renewal should not be granted

As more concessions (and extensions) approach maturity across multiple jurisdictions, these decisions are increasingly moving from theory to implementation.

Click here to read the Part 2 article (haga aquí para leer la versión de Parte 2 en español).