Buenos Aires And Montevideo Competition Heats Up

Argentina's decision to effectively ban Argentine goods being transhipped through Uruguayan ports is a reaction to Montevideo's growing role in Argentina's supply chain. The development of Montevideo's transhipment role has placed pressure on Argentina's main container port of Buenos Aires. Argentina's resolution therefore seeks to curtail Montevideo's competitive edge, and offers upside risk to throughput at the port of Buenos Aires.

Uruguay has criticised a resolution passed by Argentina that effectively prohibits Argentine exports from being transhipped through Uruguayan ports. The resolution states that exports can only be transhipped through Argentine territory or to ports within the jurisdiction of Mercosur countries that are signatories to the group's maritime shipping agreement. Argentina's resolution does not mention Uruguay explicitly. However, Uruguay is the only Mercosur nation that has not signed the maritime and shipping agreement.

Uruguayan officials spoke out against the decision at a Mercosur subgroup meeting. A foreign affairs spokesperson said: 'All the measures taken by Argentina directly harm our country. They are violations of Mercosur norms under the commercial services protocol.'

Montevideo Closing The Gap
Ports Of Buenos Aires & Montevideo Container Throughput, 2001-2012 (TEUs)

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This article is tagged to:
Sector: Freight Transport, Shipping
Geography: Argentina, Uruguay

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