ICSID to Arbitrate Montevideo Port Container Movement Dispute

The International Center for Settlement of Investment Disputes (ICSID) of the World Bank has agreed to arbitrate a case involving the shareholders of Montecon, the main operator of Uruguay’s Montevideo Port, against the state. The dispute centers around the rights to move containers in the port, with an Arbitration Tribunal expected to be appointed by the ICSID to resolve the issue.

Neltume Ports has been protesting since 2021 the decision by Uruguay’s government to grant exclusivity in container movement to Terminal Cuenca de Plata (TCP), operated by Montecon’s rival, Belgium-based Katoen Natie. The government’s agreement with Katoen Natie to invest over $455 million in expanding TCP led to the issuance of a decree prioritizing TCP’s terminal for container vessels at the Montevideo port.

Montecon, owned by Neltume Ports consortium with shareholders Ultramar (Chile) and ATCO (Canada), argues that the exclusivity agreement creates a monopoly of port services, breaching principles of free competition under Uruguayan laws. In their complaint to ICSID, Montecon alleges that Uruguay’s actions violate Investment Promotion and Protection treaties signed with its shareholders, seeking damages and losses up to $600 million. Uruguay’s President Luis Lacalle Pou defended the TCP investment as the largest in Montevideo port’s history, emphasizing his commitment to national interests and economic growth.

Source .