Vale Logistics Brazil

VALE’S LOGISTICS BUSINESSES

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Vale

Vale’s logistics businesses

Northern Logistics System

Southeast and Center-West Logistics System

Northeast Logistics System

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Customer focus

Projects and partnerships

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Vale

Our Mission

To transform mineral

resources into prosperity and

sustainable development.

Our Vision

To be the world’s biggest mining company and

exceed world-class standards of excellence in

research, development, project management and

business operations.

Ethics and transparencyWe always operate openly, communicating in an honest and direct manner

Excellence in performanceWe are tireless in our drive to improve in all areas of our business

Developmental ethosWe encourage and reward those who take the initiative

Economic, social and environmental responsibilityWe are a responsible corporate citizen

Respect for lifeThis is a priority, as human life is precious

Respect for diversityWe recognize that our strengths and character originate in our differences

Pride in “being Vale”We can hold our heads high, as we are proud of who we are

Our values

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Vale employees respect seven core values every day:

Vale has implemented a comprehensive set of initiatives involving advanced technology:

� Standardization of processes and policies

� Centralization of safety data tracking

� Analysis of best industrial practices

� Complete training programs

� Focus on disciplined risk management

� Investment in safer facilities and equipment

Health and safety

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Prioritizing lives and safety is an essential value for the company.

We have a wide range of pioneering ecological initiatives:

�Responsible operations

� Restoration of forests and reforestation;

� Use of green fuels for transportation;

� Responsible waste management

Vale recognizes that, as a mining company, its operations affect the environment. To

reduce this impact, we continually seek new ways of preserving a balance between human

progress and the natural environment, as well as actively educating and training employees

to conduct environmentally responsible actions.

Environmental responsibility

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Social responsibility

Vale demonstrates its commitment to

social responsibility across the world

in many ways:

� Job creation and economic growth: commitment to employ and train local people

� Environmental conservation initiatives

� Social outreach programs

� Educational and cultural programs

� Social investment activities

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Vale strives to develop open relationships with local communities and celebrates

shared successes by employing, educating and investing in the communities of

which it is part.

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Vale





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Customer focus


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In addition to owning an extensive rail network, Vale has access to

Brazil’s main ports, enabling the company to offer its customers

integrated logistics solutions.

Products transported: grains, sugar, fertilizers, limestone, coal, coils,

slabs, coke, slag, chalk, billets, a variety of different minerals, fuels,

containers, cement, granite, pulp and other products.

Vale provides a diversified portfolio of logistics services. The company has more than

10,000 kilometers of rail track and access to Brazil’s main ports, as well as multi-modal

terminals at various points in the network.

� Vitória-Minas Railroad (EFVM)

� Carajás Railroad (EFC)

� North-South Railroad (FNS)

� Centro-Atlântica Railroad (FCA)

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Logistics system

Carajás Railroad (EFC)

North-South Railroad (FNS)

North-South Railroad (FNS) – under construction

Vitória-Minas Railroad (EFVM)

Centro-Atlântica Railroad (FCA)

ALL – right of way, operated by FCA

MRS

Key

Maritime Terminals

Ponta da Madeira Maritime Terminal

Inacio Barbosa Maritime Terminal

Port of Aratu

Port of Salvador

Tubarão Port Complex

Valesul Terminal

Port of Angra dos Reis

Port of Santos

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Vale





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Customer focus


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The Carajás Railroad and North-South Railroad form an extensive transport corridor linking inland

regions in the states of Pará, Maranhão and Tocantins to Ponta da Madeira Maritime Terminal and the

Port of Itaqui in São Luís, as well as multi-modal terminals located at strategic points along the corridor.

The efficiency of this logistics corridor at transporting

general freight such as grains, fuel, manganese and

pig iron creates thousands of jobs in the center-north

region and contributes to Brazil’s balance of trade.

Length of EFC: 892 km

Length of FNS: 720 km

Gauge: Broad

Carajás Railroad (EFC)

North-South Railroad (FNS) – 562 km

North-South Railroad (FNS) – 158 km being built

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Logistics solution

� Strategically positioned to transport freight from Mato Grosso

state via the BR 158 highway.

� The Colinas region is now the best served in terms of fertilizer distribution, not only in Tocantins but in Mato Grosso and Bahia

too.

� Capacity: two 6,000-ton silos and one grain silo with static capacity of 1,500 tons.

Main rail terminals

The main terminals along the northern corridor are situated in: Porto Franco, Marabá, Açailândia, Parauapebas, São Luis and Colinas.

Located close to productive agricultural areas in the state of Tocantins, Colinas Terminal is the most recent terminal to have been opened, further boosting the competitiveness of the transport corridor ending at the Port of Itaqui.


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Length:

Draft:

Air draft:

Maximum DWT:

Loading capacity:

280 m

18 m

18 m

150,000 tons

1,500 t/h (soy)

2,000 t/h (pig iron)

Pier 2CHARACTERISTICS

Ponta da Madeira Maritime Terminal (TMPM) and Port of Itaqui

To handle grains, pig iron and copper, TMPM has 5 silos, 1 warehouse and 3 stockyards.


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Vale





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Customer focus


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The Vitória-Minas Railroad (EFVM) and Centro-Atlântica Railroad (FCA) form an extensive transport corridor connecting the states of São Paulo, Minas Gerais, Espírito Santo, Goiás and Rio de Janeiro to Tubarão Port Complex, the Port of Santos and Valesul.

Length of FCA: 8,066 km

Length of EFVM: 905 km

The southeast corridor transports steel

products and inputs, forest products, grains,

granite, fuels, pulp, construction materials,

sugar, fertilizers, petrochemicals, pig iron and

other products.

* All flows to the Port of Santos are carried out via a right of way

contract with ALL



ALL


MRS

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The Vitória-Minas Railroad is one of the most modern and productive railroads in Brazil.It connects Minas Gerais to the coast of Espírito Santo, forming a modern, safe and highly productive export and import corridor.

Length of EFVM: 905 km

Gauge: Metric

The EFVM links to the Centro-Atlântica Railroad,

Tubarão Port Complex and other ports in

Espírito Santo, providing customers with

competitive services along a transport corridor

for steel products and inputs, forest products,

grains, granite, fuels, pulp and construction

materials.




ALL

MRS

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Centro-Atlântica Railroad (FCA)Extending for more than 8,000 km of track, the Centro-Atlântica Railroad is strategically located, connecting with Brazil’s major railroads.


ALL


MRS

The railroad connects with Tubarão Port Complex,

via the EFVM, as well as ports located in São Paulo

and Rio de Janeiro.

The railroad’s diversity of assets enables logistics

solutions to be provided for grains, sugar,

limestone, cement, phosphate, pig iron, fertilizers

and clinker, as well as steel and petrochemical

products.

* All flows to the Port of Santos are carried out via a right of way contract

with ALL

Length: 8,066 km

Gauge: Metric


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Logistics solution

�2 hopper chutes and 2 truck dumpers

�2 silos each with 3,000 tons of static capacity

�Parking for 200 trucks (~18,500 m2)

�6 silos each with 18,000 tons of static capacity (under construction)

�Elevators and conveyor belts – 600 tons per hour

�Capacity to load 40 wagons in 6 hours

Pirapora Multi-Modal Terminal (TIP)


Main rail terminals

Along the southeast corridor there are more than 150 terminals owned by Vale and third parties.

Located in the northwest of Minas Gerais state, Pirapora Multi-Modal Terminal (TIP) is the most recent

addition, making the transportation of grains more competitive and boosting agricultural development in

the region.

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Type of cargo:

Length:

Draft:

Maximum beam:

Maximum DWT:

Maximum ship length:

Grains

300 m

14.70 m

43.5m

150,000 tons

280 m

Fertilizers and general cargo

240.9 m

11.30m + tide

32.5m

80,000 tons

245 m

CHARACTERISTICS BERTH 3 BERTH 4

Diverse Products Terminal (TPD)

To handle grains and fertilizer, the TPD has 2 silos and 9 warehouses, 8 for grains.


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760 m

315 m

16.0 m + tide / 3.5 m + tide

55 m

250,000 tons

Length:

Maximum ship length:

Draft:

Maximum beam:

Maximum DWT:

CHARACTERISTICS

Praia Mole Terminal (TPM)

To handle coal and coke, the TPM has five yards and more than 16 km of conveyor belts.


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Length:

Draft:

Minimum depth:

250 m

10.5 m

13.5 km

CHARACTERISTICS TERMINAL

Berth 201 (Valesul)

Valesul Port Terminal

The Valesul Terminal has 2 alumina silos.


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Vale





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Customer focus


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The northeast corridor is formed by the Centro-Atlântica Railroad (FCA), which connects the states of Bahia and Sergipe to the ports of Salvador, Aratu and Aracajú (TMIB).

The corridor has more than 10 terminals

owned by Vale and third parties.



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Length:

Draft:

Width of pier:

Bridge length:

356 m

10 m

17.9 m / 23.9 m

2,400 m

CHARACTERISTICS TERMINAL � Two mobile hoppers fed by cranes aboard ships.

Inácio Barbosa Maritime Terminal (TMIB)

The TMIB has 5 warehouses and 2 coke yards.


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Vale



Southeastern and Center-West Logistics System


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Customer focus


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Investment in logistics

Between 2003 and 2009, Vale invested more than US$7 billion in logistics.

353484

730649

977

1,952 1,948

0

500

1.000

1.500

2.000

2.500

2003 2004 2005 2006 2007 2008 2009

US

$ m

illi

on

Investment by Vale in logistics (US$ million)

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Consolidated gross revenue

Gross revenue from general cargo

1,073

1,896

2,1302,280

1,933

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009

R$ m

illio

n

Volumes – railroads and ports

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Portos

Vale’s railroads transported more than

49 million tons of general freight in

2009

Vale’s ports and maritime terminals

handled more than 21 million tons of

general cargo in 2009

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Vale





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Customer focus


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Customer focus

Tel: (27) 3333 2555, (31) 3279 4900 and (98) 3218 5666

Vale’s logistics businesses have a personalized customer

care structure, staffed by qualified professionals who

understand their customers’ needs.

More than simply receiving orders and requests, we offer

support and information about all stages involved in each

logistics operation.

Basic principles of our customer service:

�Accessibility

�Reliability

�Excellence

�Flexibility

Customer relations area

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Customer focus

eServices – 24-hour service throughout the year

� monitor the performance of weekly programs

� access invoice data

� monitor service level indicators

� download information bulletins and reports

Go to: www.vale.com/eservices

Vale’s logistics businesses offer customers a system that

handles information with complete confidentiality in real time:

eServices. Besides having traditional cargo tracking features,

the internet tool enables customers to:

eServices provides a vision for the online customer inside Vale. I really like working with the

system, since it is very useful for our daily fleet movements. Marcos Fernandes – Holcim “ ”

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PNS is a very useful tool, not only for understanding the issues and services that are most

important to each customer, but for avoiding a loss of focus on achieving selected targets.

Alfredo – Manager of Commercial and Transport Department, Cenibra“ ”

PNS is a program designed for continuous improvement in the quality of services provided by our

railroads and ports in order to meet or exceed customers’ expectations.

The quality of services provided is monitored by means of operational indicators chosen by our customers, such as:

�compliance with weekly and monthly programs

�transportation time

�availability of capacity

�ship loading/unloading rates

Service Level Program (PNS)

Customer focus

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Vale





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Customer focus


Projects and partnerships – Energy

Ethanol Terminal at Guaraí-TO – Northern System

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Vale signs agreement with Bunge to transport 200 MM liters of Ethanol per year, from Tocantins to Port of Itaqui.


Project Ethanol Center – Betim-MG and Vitória-ES

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Developing a New Ethanol Corridor

FROM

�Uberaba;

�Uberlândia;

�Ribeirão Preto;

TO

�Betim;

�Vitória.


Project Ethanol Center – Paulínia-SP

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Developing a New Ethanol Corridor

FROM

�Uberaba;

�Uberlândia;

�Ribeirão Preto;

TO

�Paulínia;


Ethanol Terminal at Uberlândia-MG

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Located close to triangulo mineiro TAU Terminal has a huge potential of movimentation. The terminal is capable to transport 40 MM liter of Ethanol per month and it has the capacity to load 12 wagons

Projects and partnerships – agriculture

ED&F Man – sugar

Our partnership with Vale ensures a more competitive alternative than road transport, eliminating

the need for around 12,000 annual trips by trucks to other ports, and making our logistics more

agile. Emiílio Seyfried – Operations Director at ED&F Man

Source: Logística em Foco magazine, April 2010

Logistics solution:

� 150 wagons refurbished by FCA by means of investment made by ED&F Man as advance freight payment, amortized over the contract period.

� Locomotives made available by FCA to supply demand.

� Rail link built and Matosul Terminal adapted by terminal operator (guaranteed by transportation contract with ED&F Man), involving two warehouses, one exclusively for ED&F Man’s use and the other available for third parties.

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“”


Multigrain – grains

Logistics solution:

� 300 wagons built for FCA by Mitsui Rail Capital (MRC), leased toMultigrain for the contract period.

� Locomotives modernized and rail network capacity increased (expansion and construction of rail yards), paid for by Multigrain as advance freight payment, amortized over the contract period.

Our alliance will yield many positive results for the companies involved. Eduardo Rodrigues – Multigrain

Source: Logística em Foco magazine, December 2009

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“ ”

Projects and partnerships – steelmaking

Electronic integration at Usiminas

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Electronic integration automates the exchange of information between companies, saving companies time, reducing errors and eliminating the need for data entry work.

The integration process covers the following:

�Wagon supply

�Transport schedules

�Exact tracking of loading activities

�Dispatch notes and electronic dispatch

�Invoicing processes

Usiminas is the first company to benefit from this technological solution.

Projects and partnerships – steelmaking

Vale and FCA are developing a customized wagon in partnership with ArcelorMittal

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Logistics solution:

�40 wagons refurbished in partnership with ArcelorMittal

�Locomotives made available by FCA to supply demand

�Adjustments made by ArcelorMittal at Monlevade Plant, enabling these special wagons to circulate and load

�Increased volumes transported by rail for ArcelorMittal, with high quality, safe and competitive services guaranteed by FCA/Vale

There are bottlenecks in logistics in Brazil and a great deal of creativity is required to fully exploit existing

capacity and even increase it. Paulo Cunha – Logistics Consultant, ArcelorMittal Source: Logística em Foco magazine, April 2010”“


CEAGRO – grains

Logistics solution:

� Formalization of transportation contract with the North-South Railroad (FNS), involving new 30 closed hopper cars to increase the railroad’s capacity.

� The wagons were provided to the FNS through a lease contract between CEAGRO and Ferrolease.

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Thank you

Igor Bretas de FigueiredoGerente de Conta Combustíveis e QuímicosVale – Departamento de Comercialização de LogísticaTel: (11) 5112-2413e-mail: [email protected]

Documents

Vale Logistics Brazil