Mercator International supported a Port Authority in its negotiations with a potential tenant for a major redevelopment of a terminal with a long-term concession. Mercator International developed a bottom-up commercial, operational, and financial model for the new operation that measured the relative benefit to both the concessionaire and the port of a given concession structure, using a discounted cash flow methodology. The model included the capability to evaluate various concession structure alternatives and allowed the port to determine what the potential tenant should be willing to pay under various structures. The model was updated with each iteration of negotiations to reflect new, proposed terms and conditions. Negotiations for the terminal concession are ongoing.