The port on Montevideo Bay is one of the reasons the city was founded. It gives natural protection to ships, although two jetties now further protect the harbour entrance from waves. This natural port is competitive with the other great port of Río de la Plata, Buenos Aires. The main engineering work on the port occurred between the years 1870 and 1930. These six decades saw the construction of the port's first wooden pier, several warehouses in La Aguada, the north and south Rambla, a river port, a new pier, the dredged river basin and the La Teja refinery. A major storm in 1923 necessitated repairs to many of the city's engineering works. Since the second half of the 20th century, physical changes have ceased, and since that time the area has degraded due to national economic stagnation.

What gives natural protection to ships in Montevideo?