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Vale, Usiminas Partner on Rail and Port Logistics
11/09/2009 - Vale and steelmaker Usiminas sign contracts to transport 10.1 million tonnes of raw materials and finished products per year using Vale's logistics infrastructure. The contracts provide for the use of a port terminal and two railways for the next three years.
Vale and steelmaker Usiminas have signed a series of contracts to transport 10.1 million tonnes of raw materials and finished products per year using Vale's logistics infrastructure. The contracts, which total R$900 million, provide for the use of a port terminal, Centro-Atlântica Railway (FCA), and Vitória-Minas Railway (EFVM) for the next three years.
Vale's Praia Mole Port Terminal, at Tubarão Complex, Espírito Santo state, will receive all of Usiminas’ coal imports, storing and transporting the product to the steelmaker's mill in Ipatinga, Minas Gerais state, along the EFVM. Around 3 million tonnes of coal are expected to be transported along the route per year.
Of the 10.1 million tonnes a year provided for in the contracts, 6.8 million will be transported by rail—2 million tonnes via FCA and 4.8 million tonnes via EFVM. The remaining 3.3 million tonnes will be handled at Praia Mole Port.
The companies note that the partnership will also enable an increase of 360,000 tonnes per year in the amount of limestone transported by FCA for Usiminas. The product is picked up in the Arcos region of Minas Gerais and transported to Usiminas' mill in Ipatinga, also in Minas Gerais.
In addition, iron ore from Usiminas' mines in Itatiaiuçu, Minas Gerais, as well as pig iron produced in central Minas Gerais will be hauled via EFVM.
The two railways will be responsible for transporting finished steel products, such as coils and plates, from the mill in Ipatinga to the coast of Espírito Santo state, distribution centers, and direct clients in Belo Horizonte and São Paulo. The total volume is expected to be around 3 million tonnes a year.
The planning and management of logistics operations between Usiminas and Vale will be computerized. Electronic Data Interchange will be used to monitor the supply of wagons, loading schedule, and train movements in real time.
The two companies also signed a memorandum of understanding to build a branch line of around 14 km from Vitória-Minas Railway to Santana do Paraíso, Minas Gerais, where Usiminas plans to build a new industrial plant. The project to build the mill is temporarily on hold, but the MOU guarantees continuity of the environmental permit for a rail connection that will be needed when the plant is built in the future.
Vale's Praia Mole Port Terminal, at Tubarão Complex, Espírito Santo state, will receive all of Usiminas’ coal imports, storing and transporting the product to the steelmaker's mill in Ipatinga, Minas Gerais state, along the EFVM. Around 3 million tonnes of coal are expected to be transported along the route per year.
Of the 10.1 million tonnes a year provided for in the contracts, 6.8 million will be transported by rail—2 million tonnes via FCA and 4.8 million tonnes via EFVM. The remaining 3.3 million tonnes will be handled at Praia Mole Port.
The companies note that the partnership will also enable an increase of 360,000 tonnes per year in the amount of limestone transported by FCA for Usiminas. The product is picked up in the Arcos region of Minas Gerais and transported to Usiminas' mill in Ipatinga, also in Minas Gerais.
In addition, iron ore from Usiminas' mines in Itatiaiuçu, Minas Gerais, as well as pig iron produced in central Minas Gerais will be hauled via EFVM.
The two railways will be responsible for transporting finished steel products, such as coils and plates, from the mill in Ipatinga to the coast of Espírito Santo state, distribution centers, and direct clients in Belo Horizonte and São Paulo. The total volume is expected to be around 3 million tonnes a year.
The planning and management of logistics operations between Usiminas and Vale will be computerized. Electronic Data Interchange will be used to monitor the supply of wagons, loading schedule, and train movements in real time.
The two companies also signed a memorandum of understanding to build a branch line of around 14 km from Vitória-Minas Railway to Santana do Paraíso, Minas Gerais, where Usiminas plans to build a new industrial plant. The project to build the mill is temporarily on hold, but the MOU guarantees continuity of the environmental permit for a rail connection that will be needed when the plant is built in the future.
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