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Navios Holdings will take legal measures to enforce Vale contractNavios Holdings will take legal measures to enforce Vale contract

Navios Maritime Holdings says it will take legal measures to enforce a contract with Brazilian miner Vale for an iron ore terminal.

Marcus Hand, Editor

May 26, 2016

1 Min Read
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Vale has advised Navios Holdings that it will not perform a 20-year take-or-pay contract service contract for an iron ore terminal being built in Nueva Palmira, Uruguay.

“We believe Vale's position to be without merit and consider that the contract remains in force, said George Achniotis, cfo of Navios Maritime Holdings, in a transcript of its first quarter earnings call on Seeking Alpha.

He said the company was continuing construction of the terminal and had so far paid $66m and completion would cost a further $77m.

The expected annual EBITDA from the contract was $35m.

“We will take legal measures to enforce our right under our contract,” Achniotis said.

Navios Holdings chairman and ceo Angeliki Frangrou added: “We have a contract under English law, it has a take-or-pay 20 years. We know we’ll collect a minimum of $35 million per year for the next 20 years completion of the port in end of the year.

Navios Holdings also several COAs and time charters with Vale.

“We currently have an dispute with Vale regarding the termination date of one COA contract which is under arbitration in New York. The final award for this case is expected in autumn. We have received full security for our claim after date,” said Achniotis.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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