Montecon is the main operator in the public docks of the Port of Montevideo; The claim is due to the State's agreement with the Belgian company Katoen Natie.
The International Center for Settlement of Investment Disputes (ICSID) accepted the arbitration request for US$600 million presented by the investors of Montecon, the main operator of the public docks of the Port of Montevideo, against the Uruguayan State.
The investors are ATCO (Canada) and Ultramar (Chile), which make up Neltume Ports, the majority partner of Montecon. ATCO has 40% of the shares of Neltume Ports and Ultramar 60%.
The shareholders' claim is for the agreement with the Belgian company Katoen Natie that, among other things, extended the concession of the specialized terminal (TCP) until 2081 and gave it priority to receive container ships.
According to a press release from the company, the shareholders "base their actions on the fact that the Uruguayan State violated the Investment Promotion Agreement signed with Chile."
"These measures prevent Montecon from transferring and storing containers in the public docks of the port of Montevideo, while ignoring the legal regime of free competition applicable to these activities, all of which violates the commitments assumed by the Uruguayan State regarding Level Minimum Treatment, National Treatment and Most Favored Nation Clause, contemplated in the international treaty," the statement added.
The shareholders understand that the arbitration process begins "after the unsuccessful closure of a period of consultations and direct negotiations to reach a friendly solution between the parties, during which communications were sent that were not responded to by the Uruguayan authorities."
"From this ICSID decision, the composition of the Arbitration Court, the definition of the procedure and the start of the trial itself will correspond," the statement concludes.
On the other hand, only the Canadian shareholders – that is, ATCO – had already submitted another application to the ICSID. This complaint, for US$240 million, said that the principles of the investment protection treaty between Uruguay and Canada were violated.
