According to foreign media reports, Chilean port operator Neltume Ports has formally withdrawn its US$600 million international arbitration claim against Uruguay, bringing an end to the investment dispute that had lasted more than two years.

Under the settlement agreement, the Uruguayan government pays no compensation and admits no liability, while Neltume irrevocably waives all its claims against the Uruguayan state and undertakes not to initiate any new legal proceedings in the future with respect to the matters subject to the arbitration.

The investment dispute began in April 2024, when Neltume Ports, on behalf of itself and its controlled company Montecon, filed an arbitration application against the Uruguayan government with the International Centre for Settlement of Investment Disputes (ICSID) under the bilateral investment treaty between Uruguay and Chile. Montecon, a key cargo handling operator at the Port of Montevideo, had been at the center of the controversy over its shareholder structure and operating rights.

After the arbitration was filed, the parties made multiple attempts to resolve their differences through negotiations. In August 2025, the Uruguayan government and the relevant companies agreed to suspend the arbitration proceedings for 120 days to create space for consultations. That suspension period expired on January 12, 2026, and the parties subsequently agreed to extend the suspension for an additional 90 days to continue the dialogue.

Following prolonged and intensive negotiations, the parties finally signed a settlement agreement on September 4, 2026. According to the terms of the agreement:

- Neltume, Montecon and their affiliates fully abandon all claims made in the arbitration and undertake not to bring any new legal actions against Uruguay in the future regarding the matters covered by the arbitration;

- The Uruguayan government assumes no compensation liability, and the agreement imposes no additional obligations or conditions on the state;

- The settlement pertains only to the Neltume case and does not affect the separate arbitration proceeding involving the other shareholder, Atco.

The Uruguayan government has stated that the Atco case is still being processed, but officials expect that it may be resolved in a similar manner. Previously, the arbitral tribunal in the Neltume case had already been constituted, while the tribunal for the Atco case had not yet been formally established.

Although the legal dispute lasted more than two years, Montecon's daily cargo handling operations at the Port of Montevideo continued to function normally. As the core operator of Uruguay's main commercial port, Montecon's sustained and stable operations are of great significance to the country's foreign trade and logistics chain. The conclusion of this settlement not only removes the legal uncertainty posed by the Neltume case but also clears the way for the long-term stable development of port operations.