The 20-year service contract between Greek dry bulk shipping company Navios Maritime Holdings and Brazilian mining giant Vale International remains in full force and effect, according to a London arbitration tribunal ruling.
The announcement is the result of arbitration proceedings launched by Navios Maritime in June 2016 after Vale said that it will not be performing the contract related to an iron ore port currently under construction in Nueva Palmira, Uruguay.
Navios said that the arbitration tribunal, which issued its decision on December 21, 2016, also determined that Navios may elect to terminate the contract if Vale “were to further repudiate or renounce the contract.”
The company would then be entitled to damages calculated by reference to guaranteed volumes and agreed tariffs for the remaining period of the contract, Navios added.
The 20-year service contract was signed between Navios’ subsidiary, Navios South American Logistics, and Vale in September, 2013.