Navios South American Logistics Inc. Agrees to Store and Transship Mineral Commodities for Vale International S.A. for a 20-Year
Navios South American Logistics Inc. Agrees to Store and Transship Mineral Commodities for Vale International S.A. for a 20-Year Period
MONTEVIDEO, URUGUAY -- (Marketwired) -- 11/13/13 -- Navios South American Logistics Inc., a subsidiary of Navios Maritime Holdings Inc. (NYSE: NM)
-- Minimum Aggregate EBITDA of $1.0 Billion Anticipated -- Additional EBITDA from Services to Third Parties
Navios South American Logistics Inc. ("Navios Logistics"), a subsidiary of Navios Maritime Holdings Inc. (NYSE: NM), announced today that it has signed a 20-year agreement with Vale International S.A. ("Vale") for storing and transshipping iron ore and other commodities. Vale is a significant subsidiary of Vale S.A., the world's largest iron ore producer, an investment grade credit rated company, with a market capitalization exceeding $80 billion.
Ms. Angeliki Frangou, Chairman of Navios Logistics, said, "Our partnership with Vale emphasizes Navios Logistics' leadership in the Hidrovia Region. We are proud to continue our investment in South America as we build the infrastructure necessary to meet the needs of a global society. This storage and transshipment facility will increase the volumes shipped throughout the region."
Mr. Claudio Lopez, Chief Executive Officer of Navios Logistics, added, "We have developed a strong relationship with Vale through years of providing reliable service. With this agreement, Vale is demonstrating its long term faith in and commitment to Navios Logistics."
The agreement with Vale provides for storing and transshipping five million tons annually of iron ore, plus an option to Vale for an additional one million tons or a total of six million tons, with a guarantee that Vale will use a minimum of four million tons. The agreement provides for fixed tariffs per ton, paid in US dollars, with annual adjustments for inflation and currency fluctuations.
-- Navios Logistics would expect to generate approximately $35.0 million of annual EBITDA, and $1.0 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal. -- If Navios Logistics uses the facility for initial maximum capacity, Navios Logistics would expect to generate approximately $50.0 million of annual EBITDA and $1.5 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal.
Navios Logistics will provide storage and transshipment services by expanding its existing terminal infrastructure and investing approximately $150.0 million. Upon completion of the expansion of the storage and transshipment facility, the facility will have six million tons of throughput capacity with potential to increase to ten million tons.
The facility could generate additional EBITDA if the facility were expanded to its ten million ton maximum design capacity.
Navios Logistics may cancel the agreement without any liability for a number of reasons during the initial two-year period.
About Navios South American Logistics Inc. Navios Logistics Inc. is a subsidiary of Navios Maritime Holdings Inc. (NYSE: NM).
Navios Logistics one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminal, river barge and coastal cabotage operations. For more information about Navios Logistics please visit our website: www.navioslogistics.com.
About Navios Maritime Holdings Inc. Navios Maritime Holdings Inc. (NYSE: NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: www.navios.com.
Forward-Looking Statements - Safe Harbor This press release contains forward-looking statements (as defined in Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Logistics' subsidiaries. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding completion of the offering. Although Navios Logistics believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Logistics, including market conditions. Actual results may differ materially from those expressed or implied by such forward-looking statements. Navios Logistics expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Logistics' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Contact: Navios South American Logistics Inc. +1.212.906.8646 firstname.lastname@example.org