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
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
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:
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:
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.
Navios South American Logistics Inc.
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