=Paper=
{{Paper
|id=Vol-2851/paper4
|storemode=property
|title=Mechanisms for the Effective Sharing of Risks of Seaport Concession Projects
|pdfUrl=https://ceur-ws.org/Vol-2851/paper4.pdf
|volume=Vol-2851
|authors=Anatoliy Shakhov,Varvara Piterska,Olha Sherstiuk,Volodymyr Botsaniuk,Igbal Babayev
|dblpUrl=https://dblp.org/rec/conf/itpm/ShakhovPSBB21
}}
==Mechanisms for the Effective Sharing of Risks of Seaport Concession Projects==
https://ceur-ws.org/Vol-2851/paper4.pdf
Mechanisms for the Effective Sharing of Risks of Seaport
Concession Projects
Anatoliy Shakhova, Varvara Piterskaa, Olha Sherstiuka, Volodymyr Botsaniuka and Igbal
Babayev b
a
Odesa National Maritime University, 34, Mechnikov str., Odesa, 65026, Ukraine
b
Azerbaijan Project Management Association, City Point Business Center Jalil Mammadguluzade str., 102A,
Baku, AZ1078, Azerbaijan
Abstract
The subject of the research is the risk management models and mechanisms of concession
projects of seaports. The purpose of the paper is to develop a mechanism for the effective risk
sharing in the implementation of concession projects in seaports. The following tasks are
solved in the article: analysis of the practice of the implementation of concession projects in
the seaport; development of the risk identification mechanism for stakeholders of concession
projects in the port; development of the mechanism for finding the level of mutually
acceptable risks for stakeholders of the seaport concession project. The following results
were obtained: on the basis of the risk management theory, a conceptual model for managing
the risks of seaport concession projects was developed; a classification model for stakeholder
risk of concession projects was proposed; a risk matrix for stakeholders of concession
projects in the seaport was built; a risk-sharing mechanism between the stakeholders in the
implementation of concession projects in seaport was developed based on the method of the
risk management according to ISO 31000. Sharing of risks between the stakeholders of the
concession project in the seaport is based on the assessment of the parties' capabilities in
managing specific risks and the cost of managing them for each of the stakeholders.
Keywords 1
Risk, Seaport Concession Project, Acceptable Risk Level, Stakeholder, Risk Matrix
1. Introduction
According to the National Transport Strategy of Ukraine for the period until 2030, an
unsatisfactory level of transport and logistics technologies and multimodal transportation reduces the
competitiveness of the transport environment. To maximize the geographical position of Ukraine as a
transit country, urgent measures should be taken to ensure the organization of freight traffic between
the countries of Europe, Asia and the East [1].
It is necessary to increase the efficiency and competitiveness of the transport industry, improve the
legal mechanism of public-private partnerships, strengthen interaction between the public and private
sectors, public authorities and local authorities, carry out necessary reforms, including the
introduction of decentralization, especially through coordinated public policy initiatives. The above
principles will provide a solid foundation for the sustainable development of the transport industry
and creation of a free and competitive transport services market [2-4].
The concession of state stevedoring companies is a direct implementation of the National
Transport Strategy, and the implementation of pilot concession projects in Ukrainian ports will
accelerate the process of attracting investors to implement projects in other ports. In addition, the
Proceedings of the 2nd International Workshop IT Project Management (ITPM 2021), February 16-18, 2021, Slavsko, Lviv region, Ukraine
EMAIL: avshakhov@ukr.net (A. 1); varuwa@ukr.net (A. 2); olusha972@gmail.com (A. 3); radaonmu@gmail.com (A. 4);
igbalbabayev@gmail.com (A. 5)
ORCID: 0000-0003-0142-7594 (A. 1); 0000-0001-5849-9033 (A. 2); 0000-0002-0482-2656 (A. 3); 0000-0001-6963-8086 (A. 4); 0000-
0002-1787-7859 (A. 5)
©️ 2021 Copyright for this paper by its authors.
Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR Workshop Proceedings (CEUR-WS.org)
project involves attracting not only private investment, but also modern technologies and solutions in
the port industry, and will have a positive impact on the transport industry as a whole [5].
2. Analysis of Literature Data and Resolving the Problem
Implementation of concession projects is one of the most effective and most applicable
mechanisms of public-private partnership in international practice. They are used when the state does
not have enough financial, human, managerial and other resources to provide services to the
population [6-8]. In addition, concessions for the state are a way to attract managerial resources and
business technologies to implement priority tasks throughout the country, as well as reduce budget
expenditures [9-11]. Concession projects as one of the instruments of public-private partnerships
seem to be a rather successful mechanism, which makes it possible to equally take into account the
interests of the state and private investor [12].
Initially, the most common form of concession agreements was agreements under which
ownership of the concession object is retained by the state. Nevertheless, many countries have
legislatively fixed the possibility of the existence of mixed forms of concession agreements providing
for partial or full transfer of the object to a private investor [13].
Concessions are differentiated by country and by sector of economy (industry). For some
countries, this form of concession is more suitable when the right of ownership is always reserved by
the state (France). For others, options are possible when ownership can pass to a private investor (as
in the US) [14].
For an investor, the benefit of the concession is not only access to traditionally closed sectors of
the economy and the possibility of building the infrastructure necessary for enlarging your business
(for example, building terminals in a port to intensify cargo handling) [15].
The benefit also lies in the sharing of risks, as well as in sufficiently high guarantees of repayment
of funds. In addition, in the future, the investor will have the opportunity to receive regular projected
incomes [16].
State strategies and programs implemented in the transport industry of Ukraine and based on the
use of only budget funds do not allow the implementation of large-scale strategic projects in ports.
Therefore, the country's authorities have embarked on a broad attraction of private investment and the
rapid development of public-private partnerships in the sea trade ports of Ukraine.
3. The Purpose and Objectives of the Research
The purpose of this work is to develop a mechanism for the effective sharing of risks in the
implementation of concession projects in seaports. The following tasks are solved in the article:
analysis of the practice of implementing concession projects in the seaport; development of a risk
identification mechanism for stakeholders of concession projects in the port; development of a
mechanism for determining the level of mutually acceptable risks for stakeholders of the seaport
concession project.
4. Materials and Methods of the Research
In Ukraine, the mechanisms of public-private partnership were fixed several decades later than in
other countries. The Law of Ukraine “On Concession” itself was adopted only in 2019, but until today
it has not been an effective mechanism of public-private partnership.
According to the Law of Ukraine “On Concession”, a concession is a form of public-private
partnership, which provides for the right to create and / or build (new construction, reconstruction,
restoration, overhaul and technical re-equipment), and / or to manage (use, operation, maintenance)
the object of the concession by the concessor to the concessionaire, and / or provides for socially
significant services in an appropriate manner and on the terms determined by the concession
agreement, and also provides for the transfer of the most part of the operational risk to the
concessionaire and covers the demand risk and / or supply risk [17].
International experience in managing seaports shows that among many sources of financing,
modernization and updating of port infrastructure facilities, concession is the most attractive tool for
raising funds. The concession involves the implementation of socially significant projects, while the
private management of the concession subject is urgent (from 3 to 50 years) [17]. The development
strategy of the seaports of Ukraine for the period until 2038, as well as the Law of Ukraine “On
Seaports in Ukraine”, involves reforming the port industry and attracting private investment to
modernize and create port infrastructure facilities on the basis of concession agreements [18].
According to the Strategy, the directions of development of seaports should be determined taking
into account their main cargo flow and current market conditions. The implementation of the Strategy
is carried out by fulfilling plans for the short, medium and long-term development of seaports [18].
Over the nine months of the Law “On Concession” in Ukraine, two concession projects have started
to be implemented, i.e. in the port of Kherson and Olbia.
The port of Kherson was transferred to concession for 30 years, and the port of Olbia - for 35
years. The company Risoil-Kherson being the winner of the concession tender has been investing 300
million UAH in the development of the port of Kherson for four years, which is 40% more than
established by the requirements of the competition. And QTerminals from Qatar has been investing
3.4 billion UAH in the port of Olbia for five years.
At the same time, the property of the ports remains in state ownership at the end of the term of the
concession agreements and is transferred to the state with all facilities built or modernized by the
investor during the period of its operation.
The commercial seaport of Chornomorsk in the Odesa Oblast may become the third Ukrainian port
to be transferred to concession. A container terminal and a ferry service will be offered to investors
for concession there. According to the Ministry of Infrastructure of Ukraine, concession projects are
also being prepared in the seaports of Odesa, Mariupol and Berdyansk [19].
For the state, the implementation of concession projects in the port is, first of all, an instrument of
economic growth and an increase in the level of port competition, and, consequently, the level of
services provided to shipowners and cargo owners.
In recent years, the ports of Ukraine have rapidly lost their market share in cargo turnover. In
accordance with the provisions of the feasibility study, the concession project in the ports provides for
the transfer of state property to a private partner for a specified period for the purpose of carrying out
activities in the construction and operation of seaports and their infrastructure and taking certain
investment obligations for the partnership object.
According to the terms agreed between the stakeholders of the concession project, implemented,
for example, in the port of Kherson, for the first three and a half years after the end of the transitional
period, a private investor will be required to make priority investments to solve the operational and
environmental issues [23–37].
The implementation of concession projects in ports corresponds to the main goals of the Strategy
for the Development of Seaports of Ukraine for the period until 2038, since attracting a private
investor will increase the competitiveness of the port industry, bring modern technologies and
standards of port activities, provides for the attraction of private investment in the industry and is
based on assumptions about an increase in cargo handling volumes.
The implementation of the concession project in the port is aimed at preserving the state ownership
of the concession object, increasing the value of state assets at the expense of private capital,
introducing better management experience and improving the quality of services for stakeholders of
the concession project in the port. The stakeholders will be considered as: the state; a private investor
(concessionaire); local authorities (City Council, Regional State Administration); port staff; citizens;
port business (customers – cargo owners, carriers); financial institutions (banks); regulatory
authorities (seaport administration, environmental inspection, border authorities, customs service).
As a result of the implementation of the concession project in the port, the state receives additional
receipts from the payment of the concession fee paid by the Concessionaire for the right of concession
during the project implementation.
The state partner loses the need to make mandatory investments in the renewal of assets
transferred to concession to ensure their safety and the possibility of further use by the state stevedore.
A private investor gets the opportunity to manage state assets for a long time, benefits from more
efficient use of existing assets and related infrastructure transferred to concession, construction of new
capacities and optimization of port operations.
City Council and Regional State Administration receive additional receipts from land fees. In
addition, the local budget receives funds from the payment of personal income tax, as well as
additional receipts in the form of a fixed contribution to the development of the city's infrastructure in
a set amount from capital investments that will be carried out by the concessionaire. Financial
organizations get the opportunity of crediting a private partner in the concession project
implementation and receive a profit by charging interest on the financing provided.
The port staff gets the opportunity to have training, participate in other activities to improve their
skills while maintaining jobs and ensuring the market level of wages. Cargo owners and carriers
receive additional capacities for transshipment of goods, as well as a decrease in operating costs and
an increase in transshipment speed due to the renewal of transshipment equipment and optimization of
business processes in the port.
The Ukrainian Sea Ports Authority receives additional receipts due to an increase in revenues from
port dues because of an increase in the number of ship calls to the port and due to a part of the
concession fee in the event of a change in concession legislation. Also, the cost of maintaining the
facilities transferred to the concessionaire is reduced.
Participation in concession projects requires a thorough analysis of risks and their reasonable
management both by the concession provider and the concessionaire.
Risk can be defined as an activity associated with overcoming uncertainty in case of inevitable
choice, during which it is possible to qualitatively and quantitatively assess the probability of
achieving the intended result, failure or deviation from the target [12, 17].
According to ISO 31000, risk is the effect of uncertainty on a target [20].
The complexity of the effective implementation of concession projects in the seaports of Ukraine
lies in the inconsistency of the goals of each of the project stakeholders. It should be noted that when
implementing concession projects in the port, a certain stakeholder pursues its own goal, which is
often not consistent with the goals of other project stakeholders. Based on this, we can talk about the
presence of a variety of risks that are different for each stakeholder and do not coincide with other
participants’ risks in the concession project.
As part of the concession project implementation in the port, an important stage is the
development of a mechanism for finding the area of all project stakeholders' mutually acceptable
goals.
For this purpose, the goals of each stakeholder of the concession project are clearly defined. The
following stakeholders' goals are proposed for consideration:
• for the state:
GS = f ( SCH , S LP , ST ), (1)
where SCH – the volume of cargo handling; SLP – the labour productivity level of port staff; ST – the
level of tax revenues to the budget;
• for private investors:
GP = f ( PPr , PSL , PSP , PSSE , PCM ), (2)
where PPr – profit; РSL – stability of the state regulatory system; РSP – stability of the state political
system; РSSE – stability of the state socio-economic system; РCM – availability of guarantees and
compensation mechanisms from the state;
• for local authorities:
G L = f ( LT , L AB ), (3)
where LT – the level of tax revenues to the local budget; LAB – compliance with architectural and
construction standards;
• for port staff:
GC = f (C NW , C ASL , CTS ), (4)
where CNW – the number of workplaces; CASL – the average wage level; CTS – the level of technical
safety;
• for regulatory authorities:
G A = f ( AC , AV , AH , APT ), (5)
where AC – the level of compliance with customs formalities; AV – the level of compliance with
border formalities; AH – the level of compliance with sanitary formalities; АРТ – the level of port
dues;
• for citizens:
GW = f (WES ,WSM ), (6)
where WES – ecological safety of the region; WSM – compliance of the concession project with social,
moral, historical and architectural motives of the population;
• for port business:
G B = f ( BSPT , BIE ), (7)
where BSPT – processing time of ships; BIE – observance of the interests of enterprises operating in the
port and handling ships and cargo.
These target indicators are the basis for finding an area of mutually acceptable solutions that can
be effectively implemented in the seaport.
Suppose there are N stakeholders (n = 1, 2,…, N) of the concession project. The number of target
indicators is M (m = 1, 2,…, M). Then Gm is the value of the target as a result of the successful
concession project implementation. Let us take as λnm the weight coefficient of the m-th indicator for
the n-th stakeholder. The weight coefficient λnm is determined by an expert method based on the
conditions:
= 1, 0 n = 1,..., N ; = 1, 0 m = 1,..., M . (8)
nm nm
The objective function is:
Z = ( Gm nm ) → max .
N
n =1 (9)
Wherein a “+” sign is put if the stakeholder of the concession project is interested in the growth of
the target value. After defining the goals of all stakeholders of the concession project, it is necessary
to discuss risk management for each of the project stakeholders. Taking into account the above, an
urgent task is to develop a mechanism for distributing risks between the stakeholders of the
concession project in the port and to determine a mutually acceptable level of risks that will be
reasonable for the project stakeholders.
Let us consider approaches to risk management in relation to concession projects in seaports. One
of the risk management mechanisms is the transfer of risks to the stakeholder of the concession
project in the port, which will best control the risk at the lowest cost. This approach implies the risk-
taking stakeholder's freedom to make decisions about how the risk is controlled. Risk transfer is a key
aspect of maximizing the effectiveness of the concession project in the port. Another approach is a
method of avoiding risks, which leads to a change in the parameters of the concession project in the
port, to its termination or refusal to implement it at the planning stage.
Risk minimization mechanisms imply a decrease in the probability of negative consequences of
activities through insurance, making subcontracting agreements, obtaining guarantees from the project
concessionaire in the seaport [21, 22].
Risk acceptance, as a risk management method, is appropriate for those risks that the concession
project stakeholder cannot effectively manage.
The sharing of risks of concession projects in the port is an effective tool for the sharing of
responsibilities and cash flows between stakeholders, which creates additional incentives for them to
fulfill their obligations.
It should be taken into account that, since the state is responsible for the final project result, and
the concession project is directly implemented by a private partner, there is a division of responsibility
(risks) between the stakeholders, which leads to the fact that project risks cannot be transferred
exclusively to one of the parties to the agreement and shared between them. Each of the stakeholders
of the concession project in the port has different opportunities to influence risks, and, accordingly,
the cost of managing them.
Due to the sharing of risks, the cost of a concession project can be significantly reduced in
comparison with the cost of its implementation by each individual stakeholder. Moreover, their
financial capabilities differ significantly. The consolidation of the financial capabilities of all
stakeholders makes it possible to cover a greater volume of the concession project risks and thus
guarantee its greater stability.
The risk assessment of concession projects in the port should be carried out on the basis of
objective data, taking into account the goals of each of the stakeholders.
The mechanism for the effective sharing of risks of the concession agreement stakeholders
stipulates that the total risk transferred to the private investor of the concession project should not
exceed its maximum possibilities for covering it.
Also, the risk is transferred to the concession project stakeholder, which is better able than other
stakeholders to prevent or compensate for the risks.
The total government risk should take into account budget constraints and should not include the
risks of a private investor.
Therefore, in case of the presence of I risks of the concession project (i = 1, 2, ..., I), for private
investor P the condition must be met:
I (10)
RiP C P
i =1
where CP – financial capabilities of private investor P, intended to cover the i-th risk.
If there are N stakeholders (n = 1, 2, ..., N) of the concession project with financial capabilities to
compensate for risks С:
C1 C2 ... C N RN → ... → R2 → R1 . (11)
For state S with allocated state budget funding B for compensation of the i-th risk, the following
expression is valid:
I I (12)
Bi RiS .
i =1 i =1
The mechanism for distributing risks between the stakeholders of the concession project in the port
is based on the following principles:
• to identify the stakeholder of the concession project who can better control the consequences
of the exposure to the risk. One of the criteria of this principle is the possibility of insuring risks:
thus, risks from the consequences of which one can be insured are recommended to be borne by a
private investor, and those that cannot be insured are left to the state;
• to determine the concession project stakeholder, which has more opportunities to manage the
probability of risk occurrence;
• to determine the concession project stakeholder, who has an ability to eliminate the
consequences of the risk at a lower cost.
Let us present the mechanism for managing the risks of concession projects implemented in the
seaports of Ukraine (Figure 1).
Figure 1: Conceptual Model for Risk Management of Concession Projects Implemented in Ports
Based on the use of the proposed mechanism for distributing risks between the stakeholders of the
concession project in the port, the state bears the following risks: legal risks; the risk of delays in the
issuance of licenses, permits and lease of land plots; the risk of a decrease in the level of tax revenues
to the budget; the risk of delays in the commencement of construction works planned within the
concession project; the risk of losing control over state assets; the risk of violation of the regional
environmental safety standards.
The private investor also bears significant risks.
These include:
• the risk of additional obligations arising during the implementation of a concession project
under an agreement made within public-private partnership, related to the need to settle the
obligations of state-owned enterprises, the objects of which must be transferred to public-private
partnership (partially or completely);
• the risk of exceeding operating or capital costs compared to those expected when preparing a
feasibility study for a concession project;
• the risk of termination/absence of financial support from the state; the risk of a decrease in the
volume of cargo transportation;
• the risk of the need to reduce prices for port services due to the loss of competitive
advantages;
• the risk of instability of the regulatory, political and socio-economic system.
Within the research, an analysis of the risks arising from the implementation of concession
projects in ports in accordance with ISO 31000, as well as the Resolution of the Cabinet of Ministers
of Ukraine "Methodology for identifying risks of implementing public-private partnerships, assessing
them and determining the form of their management" was carried out [9, 12].
Six categories of risks were identified:
1. Regulatory - risks related to the legal aspects of the implementation of the concession project
in the port and have a potential threat to reduce the efficiency of its implementation, as well as the
project quality and integrity. This category includes risks associated with the preparation and
approval of documents regulating the fulfillment of the obligations of stakeholders within public-
private partnerships. In addition, this group includes legal risks, in particular, risks associated with
the proper application of current legislation or delays in the development and making decisions
necessary for the concession project implementation;
2. Environmental - risks associated with the impact of the concession project on the
environment;
3. Social and political - risks associated with general political factors, as well as the risks of the
impact of the concession project on employees of state-owned enterprises and the local
community;
4. Market - risks associated with the deviation of actual income from the forecast due to a
decrease in the volume of cargo handling or the level of prices for services that are planned to be
provided within the implementation of the concession project in the port;
5. Financial - risks of deviation of the financial indicators of the concession project in the port
from the planned ones due to the occurrence of macroeconomic factors, changes in customs or tax
legislation, as well as the ability of the concessionaire to attract financing on the stipulated
conditions;
6. Technical - risks that are directly related to the implementation of the measures and operating
activities provided for by the concession project during its term.
Most of the risks can only be assessed qualitatively, based on an expert analysis of the probability
of their occurrence and their impact on the implementation of the concession project in the port, while
a quantitative assessment is possible only for those risks that have a direct impact on the project
financial indicators.
The mechanism for analyzing the risks of concession projects implemented in ports is offered,
taking into account the choice of the method for conducting risk assessment, as well as predicting the
participation of stakeholders in incurring a certain type of risk (Table 1).
Table 1
Risk sharing mechanism for concession projects in ports (S – state; P – private investor; QA –
qualitative risk assessment; QSA – quantitative assessment /sensitivity analysis)
Risk type of the concession project in the port Assessment Predictive
method distribution
Legal risks
Changes in the legal base for tax, customs, currency issues QA S
Setting prices, tariffs, fees in an amount that does not correspond QA S
to economically justified costs
Nationalization, confiscation or other compulsory alienation of QA S
the concessionaire's property
Changes in the the legal base in regulation of the operating QA S
activities of port operators
Changes in the legal base on licensing and permits QA S
Untimely transfer of property to concession, land plots - to lease QA S+P
Failure by stakeholders to fulfill obligations under the concession QA S+P
project in the port
Absence or insufficient level of settlement of certain issues of QA S+P
interaction of stakeholders of the concession project in the port
Early termination of the concession project in the port QA S+P
Violation of the conditions for the return of property by the QA S+P
concessionaire to the state partner
Environmental risks
Risks of increased environmental pollution QA S+P
Environmental risks during and after construction QA S+P
Accidents and emergencies QA S+P
Social and political risks
Potential unemployment of current port staff and difficulties in QA S+P
retraining / re-hiring these workers
Disagreement of trade unions regarding the conditions for the QA S+P
implementation of possible projects
Rejection of the new edition of the Law "On Concession" QA S+P
Impact of the project on the local community QA S+P
Changes by local authorities in the amount of land tax, changes in QA S+P
the terms for the land allocation
Stakeholders’ position regarding specialized warehouses QA S+P
Reduced staff productivity QA P
Lack of qualified personnel QA P
Market risks
Fierce competition QSA S+P, basically P
Changes in the demand structure between the ports QSA S+P, basically P
Insufficient demand QSA S+P, basically P
Financial risks
Inflation rate QA S+P, basically P
Hryvnia’s exchange rate against foreign currencies QA S+P, basically P
The riskiness of investing in a project QSA P
The financial ability of the private partner to attract funding QSA P
The cost and duration of debt funds that can be raised in a QSA P
concession project
Changes in tax, customs, tariff regulation QA S
Negative consequences of the concession project implementation QA S
for public sector enterprises
Technical risks
Supply of materials QSA S+P, basically P
Disadvantages of technology QSA S+P, basically P
Underestimation of costs QSA S+P, basically P
Impact on the environment QSA S+P, basically P
Compliance procedures for obtaining licenses and permits QA S+P, basically P
Future approvals for port development projects QA S+P, basically P
Cost overrun QSA S+P, basically P
Availability and conditions for the use of land plots and assets QSA S+P, basically P
Delay in completion QSA S+P, basically P
Obsolete technology QSA S+P, basically P
Incomplete / poor-quality performance of tasks by the contractor QSA S+P, basically P
Failure to achieve operational indicators QSA S+P, basically P
The implementation of concession projects in the ports of Ukraine will significantly increase the
volume of cargo transshipment, and the infrastructure of stevedoring companies will be significantly
updated and used much more efficiently. This is beneficial not only for the private investor, but also
for the government side, as the financial and economic benefits from improved port operations will be
shared between the public and private sectors.
5. Conclusions
The implementation of concession projects in the ports of Ukraine, and, consequently, the
expansion of the transshipment capacities of the ports will lead to a significant increase in the
contribution of ports to the state budget than under the “no change” scenario, when the state enterprise
is financially limited to make the necessary investments. Thus, attracting a private investor through
the implementation of concession projects in ports is the only expedient way to increase the
transshipment capacity of cargo in the ports of Ukraine through private investment in port facilities.
The paper proposes a mechanism for finding the area of mutually acceptable goals of all
stakeholders of the concession project being implemented in the port, based on the management of
target indicators of stakeholders, taking into account the weight coefficient of a certain indicator for a
specific stakeholder.
A conceptual model of risk management of concession projects in the port based on the ISO 31000
standard, as well as the Methodology for identifying risks of implementing public-private
partnerships, assessing them and determining the form of their management was developed. A
mechanism for distributing risks between the stakeholders of the concession project has been
developed, which allows identifying risk situations for the state and private investors.
In further researches, the implementation of the proposed risk sharing mechanism in the
implementation of concession projects in seaports is supposed to be carried out on the basis of the use
of an information system, which will greatly simplify the procedure for achieving the goal. The use of
the information system in the implementation of the proposed mechanism for distributing risks
between the stakeholders of the concession project in the port will make it possible to determine the
mutually acceptable level of risks that will be reasonable for the project stakeholders more clearly.
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