Uruguay renews TCP concession contract with Katoen Natie for another 50 years

The Uruguayan government published an agreement to renew the current concession for Terminal Cuenca del Plata (TCP) for another 50 years. The container terminal is currently operated by the Belgian company Katoen-Natie until 2031 and is the only dedicated container terminal in the port of Montevideo. Its competitor is the operator Montecon, controlled by Chilean Ultramar, which has operated public berths at the port since 2000 and has been pressuring the Administracion Nacional de Puertos (ANP), for better conditions at the port.

The initial announcement about the renewal was made on March 2 by Uruguay President Luis Lacalle Pou and was confirmed this Wednesday before the Senate. Part of the negotiated terms state that Katoen Natie will cancel a lawsuit against the ANP filed in 2019 in the amount of US$ 1.5 billion and that they invest US$ 460 million in the coming years. The agreement also specifies that Katoen Natie, whose minority partner (20%) is the Uruguayan state, will expand its capacity and reduce its tariffs.

An analysis of the volume of full containers moved over the last five years through the port shows that Montecon handled more cargo than Katoen Natie, both in terms of imports into the Plate region, as well as exports. It also shows that Montecon handled both more gateway cargo, as well as transhipments.

Exports from TCP Cuenca del Plata and Montecon | Jan to Dec 2015-2020 | TEU

Source: DataLiner (click here to request a demo).

Imports into TCP Cuenca del Plata and Montecon | Jan to Dec 2015-2020 | TEU

Source: DataLiner (click here to request a demo).

One of the more controversial points of the agreement promoted by the government is that it certifies that all cargo will be directed to Katoen Natie and that public berths will be considered only as an alternative when all berths at TCP are completely full. Montecon, as well as other port actors, allege that these conditions are detrimental to free competition.

As for investments in infrastructure, in the agreement, ANP agrees to dredge the access channel up to 14 meters but currently it does not have authorization from the Administrative Commission of the Río de la Plata (CARP) to do so. CARP is an international organization comprising of Argentina and Uruguay to deal with matters of common interest in management of the River Plate area.

In part of the contract, the text says that the ANP will guarantee and maintain a depth of 14 meters in the access channel and in the terminal’s maneuvering area.

The work should be done in stages and the current stage is to dredge up to 13 meters. According to authorities, Uruguay will complete all steps to request authorization from Argentina to bring dredge up to 14 meters.

“We are working at this moment so that the access channel of the Port of Montevideo reaches a depth of 13 meters, which for us will be important. And we are working to present the executive project soon to communicate to the Argentine Republic Uruguay’s intention to dredge up to 14 meters”, he explained.

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