A consultation carried out by Terminales Graneleras del Uruguay (TGU) regarding a purchase and sale operation before the Commission for the Defense of Competition, motivated Montecon -again- to claim that they let it compete as a container operator in the port of Montevideo.
In the response to TGU – about a possible anti-competitive practice in the port of Nueva Palmira -, the commission responded that all markets are governed by the principles and rules of free competition, with exceptions based on reasons of general interest. He added that “it has been the Commission’s position that the port services market is subject to free competition regulations.”
The statements of the commission – a decentralized body of the Ministry of Economy – revived Montecon’s position on its right to compete in the container market. The company had already filed a complaint with the agency on this issue in September 2021.
There he stated that the extension of the concession granted by the government to Katoen Natie for Terminal Cuenca del Plata (and the decrees that grant him docking priority for cargo ships) limited and restricted its activity within the port of Montevideo. Also that this contract signed between the Executive power and the Belgian multinational was a kind of collusive pact with the intention of excluding competitors from the market.
The commission decided to move forward with the complaint, but the Ministry of Economy (MEF) revoked that resolution. In February he took up the case again. And again that resolution was revoked by the MEF.
Ines Guimaraens
Ministry of Economy
The last time, the ministry stated that “the Executive Power is responsible for establishing port policy and controlling its execution, that is, the one who determines port policy is the Executive Power, given that port activity is of general interest and It is related to the economic development of the country.
With this position, he supported the signing of the contract between the government and Katoen Natie.
Now, and taking into account another resolution of the commission, Montecon returned to the charge with its claims.
The director of the company fernando reveco reported to The Observer that last month an annulment action was filed before the Contentious-Administrative Court (TCA) questioning the revocation resolution of the MEF. “It is important that the commission pronounce on the events that occur in the port of Montevideo on the results of the docking decrees,” he said.
“TGU is an important precedent to continue defending free competition in the port of Montevideo and to let Montecon compete and operate in the container market,” he said.
diego martinez
Entrance to the port of Montevideo
This year Montecon started a arbitration against the Uruguayan State for the contract signed with Katoen Natie. The rationale is the same: that this agreement violates the free competition of the private operators of the port of Montevideo.
“Arbitration is progressing, the warning letters have already been sent, which is the first part of the process, and now they are working on legal aspects. It is a long process, it takes time,” Reveco said.
Beyond the international demand, he maintained that the company’s intention is to solve the underlying problem: free competition.
The director of the company reported that Montecon currently operates 20% of the containers that enter the port of Montevideo. Prior to the extension of the concession to Terminal Cuenca del Plata, operations were divided practically in equal parts.
