No takers for Montevideo’s second container terminal

Montevideo’s new dedicated container terminal project was initially promoted by Montecon in 2006 on the grounds that it was necessary to increase competition within the port. Competitor Katoen Natie which operates Terminal Cuenca del Plata (TCP) disagreed strongly and has since been engaged in a legal dispute with ANP over an alleged breach of contract.

Katoen Natie argued that when it won its operating concession in 2001 it was based on the right to operate the only specialised container terminal in the port of Montevideo. Moreover, the company believes that as it has a capacity to handle 1m teu and the dispute has caused its volumes to be reduced to less than 200,000 this year, there is no room for a second terminal. In addition, a second terminal would also deny TCP the ability to amortise its investments to date.

The government rejected these claims on the grounds that it has never granted exclusivity rights to TCP and that the concession clearly states that TCP will have to face competition from other operators in Montevideo Port. In response, TCP sent a letter to the government in order to initiate amicable negotiations without the need to go ahead with an international arbitration procedure.