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Vale Signs Railroad and Port Contracts
Sep. 1, 2010 Vale has signed contracts with Gerdau Açominas to transport steel products and coal using Vale's logistics infrastructure—Vitória-Minas Railroad (EFVM) and Praia Mole Terminal (TPM) in Espírito Santo—over the next three years.
Vale estimates that 4.5 million tonnes of freight will be transported under the deal in 2010, increasing to 6.2 million tonnes in 2012. The company notes that this is the largest freight transport deal ever made with Gerdau Açominas, one of its three biggest steelmaking clients.
The steel products will be transported on the EFVM from Gerdau Açominas' plant in Ouro Branco, Minas Gerais, to TPM at Tubarão Complex in Espírito Santo. Around 2 million tonnes of these products are expected to be transported in 2010, increasing to 3 million tonnes in 2012.
Vale will also receive the coal that Gerdau imports at TPM and will convey it along the EFVM to the steel plant in Ouro Branco. The port contract involves handling around 2.5 million tonnes of coal in 2010, rising to 3.2 million tonnes in 2012.
The contract also sets service level guarantees between the parties, entailing high-quality deliveries to a fixed schedule.
Vale is the second largest mining company in the world, with major businesses in logistics and power generation as well. Headquartered in Brazil and operating in more than 35 countries on five continents, the company employs more than 100,000 people including direct employees and contractors.