Brazilian mining giant Vale and the world's largest steelmaker ArcelorMittal have announced that they have signed a contract for the transport of limestone and iron and steel products via the Victoria Railway (EFVM) and Ferrovia Centro-Atlantica (FCA) railroads, both owned by Vale, for a period of two years, according to a local press report confirmed by Vale. The deal nearly doubles the volume transported today, conducted through a partnership between the companies.
According to the commercial logistics director of Vale and president of FCA, Marcello Spinelli, the contract is only the first of a series to come, not only with ArcelorMittal, but also with companies including Usiminas and Gerdau.
Commenting on the issue Mr. Spinelli said, "We are excited about the growth of the country in the past two months. We announced contracts with Usiminas, Gerdau and now with ArcelorMittal."
The agreement represents an increase of about 1.75 million metric tons to the existing contract between Vale and ArcelorMittal, including 1.2 million metric tons of steel and 550,000 metric tons of limestone. The value of the deal was not disclosed.
About 120 new wagons will be added to the 200 already in operation to meet the new flow. Wagons begin to be delivered as early as this month, and by January.
According to Spinelli, Vale is preparing to invest in ports, railways, in the delivery of finished goods and supplies for customers, and transportation of iron ore.