Port authorities identify the most pressing current and near term property issues in a recent research paper on the state of port property written by Franc J Pigna on behalf of the American Association of Port Authorities as:
- Most ports are seriously capital constrained; the current manner of financing capital projects is no longer working
- Property portfolios need to be rationalised to enhance throughput and increase revenues; MAG rents need to be balanced with property based ones
- There needs to be a starting point from a property portfolio value standpoint to make better decisions in managing the business
- Property leases do not reflect the true costs and value of the properties being leased resulting in underperforming port properties from a financial standpoint and subsidising tenants
- There is a need for disciplined port property asset management plans to ensure portfolio financial performance
- Traditional property appraisers are challenged with a lack of knowledge of the maritime and port industries, especially in identifying a ‘highest and best use’.