Vale and Wabtec Sign an R$1.8B Services Agreement to Enhance Carajás Railway Locomotive Fleet

SÃO LUÍS (MA), Jun 5, 2024 - Vale and Wabtec Corporation (NYSE: WAB) announced today a master service agreement (MSA) to further increase the efficiency and operations of the Evolution Series (EVO) locomotive fleet on the Estrada de Ferro Carajás (EFC). The strategic 10-year deal, valued at R$1.8 billion, will optimize the maintenance services for Vale’s fleet increasing performance, reliability, and the potential for expanded freight transport on the EFC connecting the southeast of Pará to the capital of Maranhão, São Luís. 

"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 at Vale. 

Wabtec will analyze locomotive performance data from the last three years at EFC. The company also will provide Vale real-time monitoring on 5,000 parameters of the EVO locomotives operating on the railway. Wabtec’s Global Performance Optimization Centers will evaluate the data and identify opportunities for continuous performance improvement and optimization of maintenance cycles - reducing towing and failure rates.

A global leader in the supply of equipment, systems, digital solutions and value-added services for the railway sectors, Wabtec has been supporting more than 18,000 locomotives around the world for almost two decades. 

“Wabtec has a proven history of providing integrated services designed to maximize reliability and availability of customers' locomotives at optimal operating costs,” said Danilo Miyasato, President and Regional Leader of Wabtec in Latin America. “This contract reinforces our long-standing working relationship with Vale to drive sustainable and efficient growth of EFC's railway operations.” 

Economic Impact and Job Generation in São Luís:

In addition to planning and supplying parts for preventive maintenance, the agreement foresees the creation of specialized jobs in São Luís, contributing to the local economy and strengthening regional infrastructure. The job opportunities add specific skills to the sector, preparing the local workforce for advanced technological challenges in the railway industry. Intensive training programs will be carried out with the Vale team, preparing employees to maintain and operate the locomotives with the highest efficiency. 

This contract also brings the positive socioeconomic benefits of the Partilhar Program, a Vale initiative that aims to support and encourage its supply chain to contribute to the sustainable development of the regions where it operates. Social investments in local communities add to other programs already developed by Wabtec through Voluntec, a group of company employees who focus their actions on the areas covered by the contract.

Vale and Wabtec have worked together for almost three decades to supply locomotives, materials, and components for the EFC. In July 2023, the two companies also announced an agreement for the purchase of three FLXdrive battery locomotives, which will operate for the EFC. The two companies also plan to study ammonia as an alternative fuel to diesel. 

About EFC:

• The EFC is approximately 1,000 kilometers long and connects the southeast of Pará, from Parauapebas, to the capital of Maranhão, São Luís, in Maranhão, covering 28 municipalities. The railway branch is around 100 kilometers long and connects EFC to the S11D project, in Canaã dos Carajás;
• 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;
• No Maranhão, percorre os municípios de São Luís, Bacabeira, Santa Rita, Itapecuru-Mirim, Anajatuba, Miranda do Norte, Arari, Vitória do Mearim, Igarapé do Meio, Monção, Santa Inês, Pindaré Mirim, Tufilândia, Alto Alegre do Pindaré, Bom Jardim, Buriticupu, Bom Jesus das Selvas, Itinga do Maranhão, Açailândia, São Francisco do Brejão, Cidelândia, Vila Nova dos Martírios, São Pedro da Água Branca. No Pará: Bom Jesus do Tocantins, Marabá, Curionópolis, Parauapebas.
• EFC is currently classified by the National Land Transport Agency (ANTT) as the safest railway in Brazil, with the best index among all Brazilian railways, at 1.53. To achieve these results, year after year Vale has been investing in new technologies, crossings, campaigns and dialogue to make the EFC one of the safest railways for Vale and the communities neighboring it in Maranhão and Pará. 

About Vale
Vale is a global mining company that exists to improve lives and transform the future together. One of the world's largest producers of iron ore and nickel and a major copper producer, Vale is headquartered in Brazil and operates around the world. Its operations comprise integrated logistics systems, including approximately 2,000 kilometres of railways, marine terminals and 10 ports distributed around the globe. Vale has the ambition to be recognized by society as a benchmark in safety, the best-in-class reliable operator, a talent-driven organization, a leader in sustainable mining, and a benchmark in creating and sharing value. 

About Wabtec
Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 150 years and has a vision to achieve a zero-emission rail system in the U.S. and worldwide. Visit Wabtec's website at www.wabteccorp.com