Arbitration panel backs Navios in Vale terminal contract spat

Navios Maritime Holdings has received a favourable ruling in a London arbitration with Vale after the Brazilian miner ditched plans to use a Navios iron ore terminal under construction in Uruguay.

The arbitration tribunal ruled the 20-year agreement to use the port at Nueva Palmira is in full force and effect. It was also determined that Navios may elect to terminate the contract if Vale were to further repudiate or renounce the contract and would then be entitled to damages calculated by reference to guaranteed volumes and agreed tariffs for the remaining period of the contract.

The pair had signed the agreement in 2013 for storing and transhipping up to 6m tonnes of iron ore and other commodities a year.