Katoen Natie threatens Uruguay with ICSID arbitration over new port terminal proposal

Katoen Natie, the Belgian company that controls 80% of Terminal Cuenca del Plata (TCP), has warned the Uruguayan government that it will initiate international arbitration through the International Centre for Settlement of Investment Disputes (ICSID) if a proposal for a second container terminal is accepted.

The warning follows a proposal by Neltume Ports to build a new container handling facility at the Port of Montevideo. Fernando Correa, Institutional Relations Manager at Katoen Natie, stated that such an administrative acceptance would constitute a dispute under the bilateral investment treaty between Belgium and Uruguay.

Katoen Natie argues that a second terminal would undermine the economic viability of its current USD 600 million expansion project. The company claims the move violates legal stability clauses and specific contractual terms regarding when a competing terminal can be authorized—specifically when TCP reaches 85% capacity for two consecutive years. Correa noted that any new legal claim would be significantly larger than the company’s previous USD 1.5 billion litigation against the State.