OVERVIEW OF THE MANAGEMENT OF PORT REAL ESTATE PROPERTIES

ESV Chukwuma Ihuoma Adanna

Port real estate properties are either vested, acquired or purchased as the case may be.

The need for acquisition of land is initiated for port expansion and development. This is followed by identification of suitable and adequate site for such purpose and proposals for new land acquisition for port development and expansion are made to Management of the port authority. For instance in Nigeria, the proposal will be forwarded to the relevant acquiring government agency on behalf of the Nigerian Ports Authority. The relevant government agencies determine the compensation due to the rightful owners of the land with the supervision of Estate Surveyors from the port authority.

The landed properties at the port comprises of concessioned areas, leased areas and areas occupied by the port authority. In a concession arrangement, the port leases a certain amount of space to a terminal operator to make investments on the land such as development of quay walls, buildings and other infrastructure. The concession period is usually for a long term to enable the terminal operator recoup the investments made on the land. Short and long term leases are also granted to companies at the port which can be renewed upon expiration.

Inspection of leased facilities are conducted at regular intervals by the real estate professionals in order to confirm compliance to lease agreements by the lessees. These inspections are made through scheduled and unscheduled visits. Also, undeveloped facilities are inspected from time to time to safeguard against areas of trespass and encroachment. The port officials enforce lease covenants on lessees and concessionaires as well as ensure compliance with the terms and conditions of annual tenancy agreements.

The classes of properties in the ports include berths, warehouses/sheds, stacking areas, quay apron, transit & back sheds, waterfront lands, barelands, developed lands, undeveloped lands, reclaimed lands, paved and unpaved lands, workshops, factories, offices, banks, canteens, jetties etc. Some facilities can only be developed in a certain location inside a port. For instance, quay aprons are developed at the waterfront.

Revenue is generated from port facilities through estate rents, concessionaire lease fees, pier licence fees for jetties, way leaves, sand winning fees, etc.

The records of all landed properties in the port are kept and maintained by the Estate departments in the ports. Updates are made on the records from time to time to show the current status of the properties.

The provision of environmental services at the common user areas of the ports are supervised and monitored to ensure that tenants and terminal operators on port lands follow all applicable environmental standards in line with their agreements with the Port Authority.

Valuations are carried out on the port properties for different purposesincluding capital value, insurance, rating, book keeping, compensation, rental etc. Also valuations are carried out on leased properties during the processing of long leases. The port assets are insured and valuations of the assets are carried out periodically. These valuations are undertaken by the appointment of firm of Estate Surveyors and Valuers. Land Surveyors are engaged to carry out survey of landed properties at the ports for purpose of acquisition, re-establishment of boundaries and confirmation of leased areas.

In order to ensure optimization of the port real estate, it is essential to ensure highest and best use of landed properties in the port. The Port needs to develop and maintain infrastructure such as roads and quay areas. The use of modern equipment in the ports would lead to effective services and this will attract customers to the ports as well as increase the revenue generation. Information, Communication and Technology equipment should be up to date with current best practices. The need for employment, training and re-training of professionals cannot be over-emphasized. The adoption of electronic transactions will save time and energy as well as reduce loss of man-hour.

Acquisition of land and green development is essential in the development of ports. This will encourage companies and investors to secure leases in the ports and also invest in port facilities. The developments will in turn result to more revenue generation to the Port Authority.

ESV Chukwuma Ihuoma Adanna, a registered Estate Surveyor and Valuer writes from Lagos ,Nigeria.