Regional hub port development – the case of Montevideo, Uruguay

This paper analyses port development in the context of emerging economies and specifically addresses port development in Uruguay in an environment of trilateral interport competition. The case of Montevideo is discussed with particular attention to institutional and organisational reform and the evolution and impact of the liner shipping service network in defining the role of a port within a regional port system. The proactive Uruguayan port sector has made important contributions to drive Montevideo's transhipment traffic. The discussion reveals that the current attractiveness of Montevideo as a transhipment port is partly driven by existing cabotage regulations and strategies of shipping companies. The current competitive advantage will last as long as shipping lines' strategies continue in their current form. Future development will significantly depend on the ability to further develop value added and logistics services. Thus, the findings are relevant in relation to the discussion of Montevideo's development potentials as a hub on South America's East Coast in particular and the effects of external influences on port development in general.