Uruguay settles $600 million Montecon
Uruguay has resolved a $600 million arbitration claim by Neltume Ports, the majority shareholder in terminal operator Montecon, with no payment or
Uruguay will pay no compensation after reaching a settlement with Neltume Ports to end a $600 million international arbitration. The claim was linked to container terminal operator Montecon and its operations at the Port of Montevideo.
Chile-based Neltume Ports, the majority shareholder in Montecon, has irrevocably withdrawn its claims against the Uruguayan state. The proceedings were before the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). Under the agreement, Uruguay has accepted no liability or additional obligations.
Neltume withdraws ICSID claim
The dispute began in April 2024. Neltume Ports initiated arbitration against Uruguay under the investment agreement between Uruguay and Chile. The company acted on its own behalf and on behalf of Montecon. The claim sought an estimated $600 million from the state.
As part of the settlement, Neltume has withdrawn all claims, actions and demands. Neltume, Montecon and their related companies have also committed not to initiate future legal proceedings over the matters underlying the arbitration. Uruguay’s Presidency confirmed the state will pay no compensation and assumes no responsibility.
Jorge Díaz, Prosecretary of the Presidency of Uruguay, described the outcome as “a triumph of Uruguay at the international level.”
Rooted in Montevideo port changes
The arbitration emerged from changes to the container terminal structure at the Port of Montevideo. In 2021, Uruguay reached an agreement with Katoen Natie concerning Terminal Cuenca del Plata (TCP), the port's specialised container terminal.
That agreement extended TCP’s concession until 2081. Katoen Natie committed to a major investment programme at the terminal. Montecon, which operates primarily at Montevideo’s public berths, challenged the impact of this arrangement on its business and the competitive conditions for container handling. Neltume subsequently brought its claim against Uruguay through ICSID.
Separate ATCO claim continues
The agreement with Neltume does not close all international proceedings connected with Montecon. A separate arbitration initiated by ATCO, another shareholder in Montecon, remains outstanding.
Uruguay’s government said it expects that proceeding to be resolved in a similar manner. No final agreement has yet been announced. The Neltume settlement removes the $600 million claim but leaves the second Montecon-related arbitration to be concluded.
