Uruguay
Neltume Ports said its plan for a new terminal in Montevideo was not part of a deal with the government
The firm, controlling shareholder of Montecon, submitted a $900 million proposal to build a container terminal at the port of Montevideo. Its Business Development manager said the withdrawal of the arbitration against the state came with no conditions or compensation.
Neltume Ports, majority shareholder of Montecon, submitted a proposal on September 9 to the Executive Branch to invest $900 million in a new container terminal at the port of Montevideo, according to la diaria.
According to that outlet, the company’s Business Development manager, Fernando Reveco, said the project seeks to boost competition in port activity and strengthen Uruguay’s role as a regional cargo hub, with the aim of improving services and expanding options for users.
Reveco also said that over the past three years the port of Montevideo lost about 300,000 TEUs, which shifted to other destinations. In statements cited by la diaria, he said the new terminal aims both to recover those volumes and to place the port once again among the region’s key players.
He explained that the initiative is based on ongoing talks with global players that are demanding more operating options in Uruguay and in other countries in the area. In that line, the company believes there are about 900,000 TEUs that could be captured for Montevideo.
The immediate precedent for the proposal was the company’s decision to withdraw the $600 million arbitration it had filed in April 2024 before the International Centre for Settlement of Investment Disputes. On that point, Reveco said the understanding with the government was not subject to conditions and did not involve any compensation.
He also said the TCA ruling in February opened conditions for the government to promote competition at the port of Montevideo through a specialized container terminal. La diaria added that Jorge Gandini, director of the National Port Administration for the opposition, warned about a contractual clause that, in his interpretation, would prevent the investment from moving forward. In response, Reveco said the ruling is clear regarding the possibility of promoting competition, although he stressed that the interpretation of contracts and laws is the government’s responsibility.
The proposal, developed over six months, foresees new infrastructure on more than 30 hectares, two berths for vessels of more than 360 meters in length, and a new barge terminal. Reveco said the goal is to turn it into the most efficient and fastest terminal on the east coast of South America.
Asked about the choice of Montevideo, the executive said the company has more than 15 years of presence in local port activity and considered that Uruguay offers economic, social and political conditions that provide confidence for an investment of that magnitude.
The announcement came amid the union conflict at Terminal Cuenca del Plata, whose majority owner is Katoen Natie, and the government’s decision to guarantee minimum services at the container terminal. On that situation, Reveco declined to comment on the dispute, although he insisted on presenting the project as a new port alternative and said this type of investment responds to structural factors.
Sources
About this note. Written by El Notero with assistance from artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this fact.
