Vale signs rail deal with Wabtec

Vale has signed a master services agreement (MSA) with Wabtec to boost the efficiency and operations of its Evolution Series (EVO) locomotive fleet at Estrada de Ferro Carajás (EFC) in northern Brazil.

The 10-year deal, valued at R$1.8 billion/US$335.7 million, will optimize the maintenance services for Vale’s fleet increasing availability, reliability, and the potential for expanded freight transport on the EFC, which connects the southeast of Pará to the capital of Maranhão, São Luís.

For its part, Wabtec will analyze locomotive performance data from the last three years at EFC and provide real-time monitoring on 5,000 parameters of the EVO locomotives operating on the railway.

Wabtec’s Global Performance Optimization Centers will then evaluate the data and identify opportunities for continuous performance improvement and optimization of maintenance cycles in an effort to reduce towing and failure rates.

“This long-term strategic agreement means a new standard of reliability, availability and safety for EFC locomotives, reinforcing our commitment to consistently invest in the quality and technology of our railway operations and promote the technological development of the railway sector in Brazil,” said Carlos Medeiros, vice president of Operations, Vale.

In addition to planning and supplying parts for preventive maintenance, Vale said the agreement foresees the creation of specialized jobs in São Luís, contributing to the local economy and strengthening regional infrastructure. It also stands to bring positive socioeconomic benefits of the Partilhar Program, a Vale initiative to move its supply chain to contribute to the sustainable development of the regions where it operates.

EFC’s current transportation capacity is 240 million tons per year. The fleet consists of 300 locomotives and around 24,000 wagons. An average of 22 pairs of EFC trains circulate per day.

Source: Vale

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