London Arbitration Tribunal Rules Contract Between Corporacion Navios S.A. and Vale International S.A. in Full Force
December 22 2016 - 9:15AM
Navios Maritime Holdings Inc. (NYSE:NM) and its subsidiary, Navios
South American Logistics Inc. ("Navios"), announced today that on
December 21, 2016, a London arbitration tribunal ruled the 20-year
contract (the “Contract”) between Corporacion Navios S.A. and Vale
International S.A. (“Vale”) for the iron ore port under
construction to be in full force and effect.
After receiving written notice from Vale repudiating the
Contract, Navios initiated arbitration proceedings in London
pursuant to the dispute resolution provisions of the Contract. On
December 21, 2016 the arbitration tribunal issued its decision that
the Contract remains in full force and effect. The
arbitration tribunal also determined that Navios may elect to
terminate the Contract if Vale were to further repudiate or
renounce the Contract and then would be entitled to damages
calculated by reference to guaranteed volumes and agreed tariffs
for the remaining period of the Contract.
About Navios Maritime Holdings Inc.Navios
Maritime Holdings Inc. (NYSE:NM) is a global, vertically integrated
seaborne shipping and logistics company focused on the transport
and transshipment of dry bulk commodities including iron ore, coal
and grain. For more information about Navios Holdings please visit
our website: www.navios.com
About Navios South American Logistics
Inc.Navios South American Logistics Inc. is one of the
largest logistics companies in the Hidrovia region of South
America, focusing on the Hidrovia region river system, the main
navigable river system in the region, and on cabotage trades along
the eastern coast of South America. Navios Logistics serves the
storage and marine transportation needs of its petroleum,
agricultural and mining customers through its port terminals, river
barge and coastal cabotage operations. For more information about
Navios Logistics please visit its website:
www.navios-logistics.com.
Forward Looking Statements - Safe HarborThis
press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended) concerning
future events, including 2016 and 2017 cash flow generation, future
contracted revenues, potential capital gains, our ability to take
advantage of dislocation in the market, and Navios Holdings' growth
strategy and measures to implement such strategy; including
expected vessel acquisitions and entering into further time
charters. Words such as “may,” “expects,” “intends,” “plans,”
“believes,” “anticipates,” “hopes,” “estimates,” and variations of
such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments
regarding expected revenue and time charters. These forward-looking
statements are based on the information available to, and the
expectations and assumptions deemed reasonable by Navios Holdings
at the time these statements were made. Although Navios Holdings
believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of
assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Navios Holdings. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to uncertainty relating to
global trade, including prices of seaborne commodities and
continuing issues related to seaborne volume and ton miles, our
continued ability to enter into long-term time charters, our
ability to maximize the use of our vessels, expected demand in the
dry cargo shipping sector in general and the demand for our
Panamax, Capesize and UltraHandymax vessels in particular,
fluctuations in charter rates for dry cargo carriers vessels, the
aging of our fleet and resultant increases in operations costs, the
loss of any customer or charter or vessel, the financial condition
of our customers, changes in the availability and costs of funding
due to conditions in the bank market, capital markets and other
factors, increases in costs and expenses, including but not limited
to: crew wages, insurance, provisions, port expenses, lube oil,
bunkers, repairs, maintenance, and general and administrative
expenses, the expected cost of, and our ability to comply with,
governmental regulations and maritime self-regulatory organization
standards, as well as standard regulations imposed by our
charterers applicable to our business, general domestic and
international political conditions, competitive factors in the
market in which Navios Holdings operates; risks associated with
operations outside the United States; and other factors listed from
time to time in Navios Holdings' filings with the Securities and
Exchange Commission, including its Form 20-F’s and Form 6-K’s.
Navios Holdings expressly disclaims any obligations or undertaking
to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Navios
Holdings' expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based. Navios Holdings makes no prediction or statement about the
performance of its common stock.
Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
investors@navios.com
Navios South American Logistics Inc.
+1.212.906.8646
investors@navios-logistics.com
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