Navios bags $1bn Vale ore deal

The deal is expecting to generate around $35m of annual EBITDA and aggregate $1bn for Navios, but could reach as high as $50m EBITDA per annum and $1.5bn aggregate.

The Navios Maritime Holdings subsidiary will be responsible for the storage and transshipment of 5m tons of iron ore a year, with the Brazilian mining giant holding an option for a further 1m tons. The contract guarantees a minimum of 4m tons for Navios.

Navios Logisitics will invest around $150m in the expansion of its storage and transshipment facility, which will extend capacity to 6m tons per annum.

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."