A prolonged shutdown of Vale’s Tubarao port, in the city of Vitoria, in the state of Espirito Santo, could result in the halt of the company’s iron ore operations at its southeast system, analysts said.
According to analysts from Bradesco BBI, if the port closure lasts for more than four days, Vale’s southeast system operations could be halted.
Vale said the port’s shutdown adds BRL 35 million/day ($8.55 million/day) costs to the company, which can’t load or unload cargos at the port. In the accumulated period of January to September last year, the port accounted for about 33 percent of Vale’s iron ore output, handling 82.5 million mt of the commodity.
Vale appealed the decision, saying it “hasn’t any plausible or reasonable grounding.” The iron ore producer said the measure has resulted in 20,000 workers at the port who can’t work, although they are not officially laid off.
According to Vale, the port closure has affected the loading of 200,000 mt of iron ore per day. Vale's other iron ore ports, including Ponta da Madeira, Itaguaí and Guaíba Island terminal are likely to be used if the closure remains.