Chapter 14
Financing Port Development
Port business is a capital-intensive business that requires a huge amount of up-front money before revenue can be expected. Capital expenditures for terminal investments or access channels are major purchases that port authorities and terminal operators make to maintain or expand their business. Because such purchases involve acquiring assets that provide value and use for a period of several years, the authorities and operators recover the cost of these acquisitions gradually by depreciating the assets over time. Ordinarily, businesses are not allowed to deduct the full costs of capital expenditures in the year the costs are incurred.
Therefore, the substantial outlays of capital required for such investments ...
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