Freeports as ecosystems for the preservation of fine art value and the acceleration of related businesses

This thesis investigated the ecosystems of freeports. Freeports are specialized warehouses for the storage of fine art and collectibles, for both individuals and cultural institutions. Being discrete and confidential in their nature, the role of freeports in the growing contemporary art market is rather unexplored. However, their role becomes increasingly crucial in the growing international art market. Art is more and more perceived as an alternative for financial investment, which further stimulates the international art trade activity. Due to high transaction costs and differences in jurisdictions and rules concerning taxes per country, the physical location of the art transaction is crucial. This thesis aimed to investigate which factors in the art market and related markets drive the emergence and existence of freeports. To obtain an in-depth understanding on freeports and their operations, this thesis applied a contextual approach. First, an extensive literature review was done. Hereafter, interviews, a case study and a site visit were conducted and organized around four themes: the context, the business model, the operations and the impact of freeports. The outcomes revealed that there is no evidence that freeports are unregulated and used for money laundering practices. Further, it can be concluded from this research that freeports are predominantly used for secured preservation of valuable objects. In addition to safe storage warehouses, freeports also facilitate international art trade as they offer tax-free zones and a broad range of art related services. Finally, it can be concluded that freeports are integral nodes in an international network of art collectors, museums and other cultural institutions. As such, freeports serve as ecosystems for the preservation of fine art value and the acceleration of related businesses.