UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

Dated: ~~June~~July 141, 2021

Commission File No. ~~333~~001-179250

NAVIOS SOUTH AMERICAN LOGISTICS INC.

Aguada Park Free Zone

Paraguay 2141, Of. 1603

Montevideo, Uruguay

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

~~Operating~~Supplemental ~~and~~Grimaud ~~Financial~~Loan ~~Review~~Agreement ~~and Prospects~~

~~The~~On ~~following~~June 30, is2021, aGrimaud ~~discussion~~Ventures ofS.A. ~~the~~(“Grimaud”), ~~financial~~a ~~condition~~wholly ~~and~~owned ~~results~~subsidiary of ~~operations of~~ Navios South American Logistics Inc., ~~(“Navios~~entered ~~Logistics”~~into ora supplemental agreement (the “~~Company~~Supplemental Grimaud Loan Agreement”) ~~for~~with ~~each~~Navios ofMaritime Holdings Inc. (“Navios Holdings”) to the ~~three~~loan ~~month~~agreement ~~periods~~dated ~~ended~~as ~~March~~of April 3125, ~~2021~~2019 (as amended) with Grimaud (the “Grimaud Loan”), whereby Grimaud and ~~2020.~~Navios ~~All~~Holdings ofagreed ~~these~~to ~~financial~~amend ~~statements~~the ~~have~~Grimaud ~~been~~Loan ~~prepared~~so inthat ~~accordance~~the ~~with~~Grimaud ~~International~~Loan ~~Financial~~may ~~Reporting~~be ~~Standards (“IFRS”)~~repaid asor ~~issued~~prepaid in full by the ~~International~~issuance ~~Accounting~~of ~~Standards~~shares ~~Board~~of common stock of Navios Holdings (the “~~IASB~~Shares”). ~~You~~to ~~should~~Grimaud. ~~read~~The effectiveness ~~this~~of ~~section~~the ~~together~~Supplemental ~~with~~Grimaud ~~the~~Loan ~~consolidated~~Agreement ~~financial~~is ~~statements~~subject to, and ~~the~~contingent ~~accompanying~~upon, ~~notes~~prepayment ~~included~~by in Navios ~~Logistics’~~Holdings ~~2020 annual~~of ~~report~~the ~~filed~~Grimaud onLoan ~~Form~~in ~~20-F with~~ the ~~Securities~~amount ~~and~~of ~~Exchange~~$7.5 million ~~Commission~~in oncash ~~April 15,~~and ~~2021 (~~the ~~“2020~~effectiveness ~~Form~~of ~~20-F”)~~a ~~and~~registration ~~the~~statement ~~condensed~~of ~~consolidated~~Navios ~~financial~~Holdings ~~statements~~registering ~~and~~ the ~~accompanying~~resale ~~notes~~of ~~included~~the inShares, ~~this~~among ~~Form~~other ~~6-K~~conditions.

~~This~~The report contains forward-looking statements within the meaning of the Private Securities Reform Act of 1995. All statements herein other than statements of historical fact, including statements regarding business and industry prospects or future results of operations or financial position, and future dividends or distributions, should be considered forward-looking. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. These forward looking statements are based on the information ~~available~~contained ~~to,~~in ~~and the expectations and assumptions deemed reasonable by, Navios Logistics at the time~~ this ~~filing~~Report ~~was~~shall ~~made.~~not ~~Although Navios Logistics believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can~~ be ~~given that such~~incorporated expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Logistics. Actual results may differ materially from those expressed or implied by ~~such~~reference ~~forward-looking~~into ~~statements. Included among the factors that, in management’s view, could cause actual results to differ materially from the forward-looking statements contained in this report are changes in~~ any ofprevious ~~the following: (i) demand and/~~or ~~charter~~future ~~and~~registration ~~contract~~statement ~~rates~~filed ~~for~~under ~~our vessels and port facilities; (ii) production or demand for~~ the ~~types~~Securities Act of ~~dry and liquid products that are transported by our vessels or stored in our ports; (iii) operating costs including~~1933, ~~but~~as ~~not~~amended ~~limited to, changes in crew salaries, insurance, provisions, repairs, maintenance and overhead expenses;~~ (~~iv) changes in interest rates; and (v) other factors listed from time to time in Navios Logistics’ filings with~~ the “Securities ~~and Exchange Commission, including its Forms 20-F and Forms 6-K, including the section entitled “Risk Factors~~Act” in the 2020 Form 20-F. Navios Logistics expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Logistics’ expectations with respect thereto or any change in events), ~~conditions~~unless orspecifically ~~circumstances~~identified ontherein ~~which~~as ~~any~~being ~~statement~~incorporated isby ~~based~~reference.

Overview

General

Navios Logistics was incorporated under the laws of the Republic of the Marshall Islands on December 17, 2007. We believe we are one of the largest logistics companies in the Hidrovia region river system, the main navigable river system in the region, and in the cabotage trades along the south-eastern coast of South America. We serve our customers in the Hidrovia region through our three existing port storage and transfer facilities, our Grain Terminal, which supports agricultural and forest-related exports located in Uruguay, our Iron Ore Terminal, which supports mineral-related exports both located in Uruguay and our Liquid Port Terminal, with tank storage for refined petroleum products in San Antonio, Paraguay. We complement our three port terminals with a diverse fleet of 329 barges and 30 pushboats that operate in our barge business (the “Barge Business”) and eight vessels, including six tankers, one bunker vessel and one river and estuary product tanker, which operate in our cabotage business (the “Cabotage Business”). We provide transportation for dry cargo (cereals, cotton pellets, soybeans, wheat, limestone (clinker), mineral iron, and rolling stones) and liquid cargo (hydrocarbons such as crude oil, gas oil, naphtha, fuel oil and vegetable oils) and liquefied cargo (liquefied petroleum gas or “LPG”).

Ports

We own three port storage and transfer facilities, one grain terminal, which supports agricultural and forest-related exports (the “Grain Terminal”), one iron ore terminal, which supports mineral-related exports both located in Nueva Palmira Free Zone, Uruguay (the “Iron Ore Terminal” and together with the Grain Terminal, the “Dry Port Terminals”) and one liquid port terminal, with tank storage for refined petroleum products in San Antonio, Paraguay (the “Liquid Port Terminal”). Our port facilities in Nueva Palmira have a total static storage capacity for grains of 460,000 metric tons, and a stockpile capacity of 700,000 tons for mineral ores. Our port facility in San Antonio has a total static storage capacity of 65,660 cubic meters.

Fleet

Our current core fleet consists of a total of 367 owned vessels, barges and pushboats.

The following is the current core fleet as of June 14, 2021:

Navios Logistics Fleet Summary (owned)

Pushboats/ Barges/ Inland Oil Tankers Fleet

Number ofVessels

Capacity/BHP

Description

Pushboat fleet

107,920 BHP

Various Sizes and Horsepower

Dry Barges

268

474,050 DWT

Dry Cargo

Tank Barges

178,948 m3

Liquid Cargo

LPG Barges

4,752 m3

LPG

Total

359

Product Tanker Fleet

Year Built

DWT

Description

Estefania H

2008

12,000

Double-hulled Product Tanker

Malva H

2008

8,974

Double-hulled Product Tanker

Makenita H

2009

17,508

Double-hulled Product Tanker

Sara H

2009

9,000

Double-hulled Product Tanker

San San H

2010

16,871

Double-hulled Product Tanker

Ferni H

2010

16,871

Double-hulled Product Tanker

He Man H

2012

1,693

Double-hulled Bunker Vessel

Elena H

2018

4,999

Double-hulled Product Tanker

Total

87,916

Chartering Arrangements

We continually monitor developments in the shipping industry and make decisions based on an individual vessel and segment basis, as well as on our view of overall market conditions, in order to implement our overall business strategy. In the Barge Business, we typically operate under a mix of time charters and contracts of affreightment (“CoAs”) with durations of one to five years (some of which have minimum guaranteed volumes) and spot contracts. In the Cabotage Business, we typically operate under time charters with durations in excess of one year. Some of our charters provide fixed pricing, minimum volume requirements and labor cost and fuel price adjustment formulas.

Factors Affecting Navios Logistics’ Results of Operations

For further discussion on factors affecting our results of operations, see also “Risk Factors” included in the 2020 Form 20-F. For information regarding governmental, economic, fiscal, monetary or political policies that could materially affect our operations, see “Risk Factors — Risks Relating to Argentina”, “Risks Relating to Uruguayan Free Zone Regulation” and “Other Risks Relating to the Countries in which We Operate.” in the 2020 Form 20-F.

Contract Rates

The shipping and logistics industry has been highly volatile in the recent past. In order to maximize the utilization of our fleet and storage capacity, we must be able to renew the contracts that utilize our fleet and ports upon the expiration or termination of current contracts. This ability mainly depends upon economic conditions in the sectors in which the vessels, barges and pushboats operate, changes in the supply and demand for vessels, barges and pushboats and changes in the supply and demand for the transportation and storage of commodities.

Weather Conditions

As we specialize in the transportation and storage of liquid cargoes and dry bulk cargoes along the Hidrovia, any changes adversely affecting the region, such as low water levels, could reduce or limit our ability to effectively transport cargo. Droughts and other adverse weather conditions, including any possible effects of climate change, could result in a decline in production of the agricultural products Navios Logistics transports and stores, and this could result in a reduction in demand for its services.

See “Quantitative and Qualitative Disclosures about Market Risk” for a discussion of foreign currency transactions, inflation and fuel price increases.

Foreign Currency Transactions

Our operating results, which are reported in U.S. dollars, may be affected by fluctuations in the exchange rate between the U.S. dollar and the Uruguayan pesos, Argentine pesos, Brazilian reais and Paraguayan guaranies. We use the U.S. dollar as our functional and reporting currency. Therefore, revenue and expense accounts are translated into U.S. dollars at the exchange rate in effect at the date of each transaction. The balance sheets of our foreign operations are translated using the exchange rate at the balance sheet date except for property and equipment and equity, which are translated at historical rates.

Our subsidiaries in Uruguay, Argentina, Brazil and Paraguay transact their operations in either U.S. dollars or Uruguayan pesos, Argentine pesos, Brazilian reais and Paraguayan guaranies, respectively; however, the subsidiaries’ primary cash flows are in U.S. dollars. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated are recognized in the statement of income.

Inflation and Fuel Price Increases

The impact of inflation and the resulting pressure on prices in the South American countries in which we operate may not be fully neutralized by equivalent adjustments in the rate of exchange between the local currencies and the U.S. dollar. Specifically, for our vessel, barge and pushboat business, we have negotiated, and will continue to negotiate, crew cost adjustment and fuel price adjustment clauses; however, in some cases, the prices that we pay for fuel and crew costs are temporarily not aligned with the adjustments that we obtain under our freight contracts.

Seasonality

Certain of our businesses have seasonality aspects, and seasonality affects the results of our operations and revenues, particularly in the first and last quarters of each year. Generally, the high season for the barge business is the period between February and July as a result of the South American harvest and higher river levels. Any growth in production and transportation of commodities may offset part of this seasonality. During the South American late spring and summer, mainly from November to January, the low level of water in the northern Hidrovia could adversely affect our operations because the water level is not high enough to accommodate the draft of a heavily laden vessel. Such low levels also adversely impact our ability to employ convoys as the water level towards the banks of the river may be too low to permit vessel traffic even if the middle of the river is deep enough to permit passage. With respect to dry port terminal operations in Uruguay, the high season is mainly from April to September, linked with the arrival of the first barges down the river and with the oceangoing vessels’ logistics operations. Our Liquid Port Terminal operations in Paraguay and our Cabotage Business are not significantly affected by seasonality as the operations of the Liquid Port Terminal and Cabotage Business are primarily linked to refined petroleum products.

Statement of Income Breakdown by Segments

We report our operations based on three reportable segments: Port Terminal Business, Barge Business and Cabotage Business. The Port Terminal Business segment includes the operating results of our Dry Port Terminals and Liquid Port Terminal operations. Our Dry Port Terminals are comprised of our Grain Terminal and our Iron Ore Terminal, each of which are located in an international tax-free trade zone in the port of Nueva Palmira, Uruguay, at the convergence of the Parana and Uruguay rivers. Our Liquid Port Terminal is an up-river port terminal with tank storage for refined petroleum products and oil and gas in San Antonio, Paraguay, approximately 17 miles by river from the capital, Asunción.

Period over Period Comparisons

The following table presents consolidated revenue and expense information for the three month periods ended March 31, 2021 and 2020. This information was derived from the unaudited condensed consolidated financial statements for the respective periods.

(Expressed in thousands of U.S. dollars)	Three MonthPeriod endedMarch 31,2021(unaudited)			Three MonthPeriod endedMarch 31,2020(unaudited)
Revenue		53,036			56,554
Cost of sales		(35,371	)		(38,027	)
Gross profit		17,665			18,527
Administrative expenses		(3,368	)		(3,368	)
Other operating income		707			282
Other operating expenses		(899	)		(1,162	)
Allowance for expected credit losses on financial assets		(145	)		(408	)
Operating profit		13,960			13,871
Finance income		1,806			2,319
Finance costs		(14,556	)		(9,446	)
Foreign exchange differences, net		1,077			47
Profit before tax		2,287			6,791
Income tax benefit		220			123
Profit for the year		2,507			6,914
Other Operating Data
Grain Port-tons of cargo moved		582,901			194,028
Iron ore Port-tons of cargo moved		116,342			292,527
Liquid Port—cubic meters of stored liquid cargos		108,037			101,842
Liquid Port—cubic meters of sales of products		4,564			11,900
Barge—cubic meters of liquid cargos		112,291			78,410
Barge—dry cargo tons		394,468			458,767
Cabotage—cubic meters of liquid cargos		491,539			520,082
Cabotage—available days		720			702
Cabotage—operating days		527			619
Revenues per Segment
Port Business	$	24,772		$	26,347
Revenue—grain port	$	7,070		$	2,211
Revenue—iron ore port	$	13,290		$	15,292
Revenue—liquid port	$	1,232		$	996
Sales of products—liquid port	$	3,180		$	7,848
Barge Business	$	18,787		$	18,840
Cabotage Business	$	9,477		$	11,367

For the three month period ended March 31, 2021 compared to the three month period ended March 31, 2020

Revenue

The following table presents our revenues for the three month periods ended March 31, 2021 and 2020:

	Three month period ended March 31, 2021											Three month period ended March 31, 2020
	PortTerminalBusiness		CabotageBusiness			BargeBusiness			Total			PortTerminalBusiness		CabotageBusiness			BargeBusiness			Total
Time chartering revenues		—		8,810			2,057			10,867			—		10,915			8,110			19,025
CoA/Voyage revenues		—		816			16,769			17,585			—		700			10,750			11,450
Port terminal revenues		21,592		—			—			21,592			18,499		—			—			18,499
Turnover tax		—		(149	)		(39	)		(188	)		—		(248	)		(20	)		(268	)
Time charter, voyage and port terminal revenues	$	21,592	$	9,477		$	18,787		$	49,856		$	18,499	$	11,367		$	18,840		$	48,706
Sale of Products-Liquid Port Terminal	$	3,180		—			—		$	3,180		$	7,848		—			—		$	7,848
Total Revenue	$	24,772	$	9,477		$	18,787		$	53,036		$	26,347	$	11,367		$	18,840		$	56,554

Time Charter, Voyage and Port Terminal Revenues: For the three month period ended March 31, 2021, Navios Logistics’ time charter, voyage and port terminal revenues increased by $1.2 million or 2.4% to $49.9 million, as compared to $48.7 million for the same period in 2020. Revenue from the Port Terminal Business increased by $3.1 million or 16.7% to $21.6 million for the three month period ended March 31, 2021, as compared to $18.5 million for the same period in 2020. The increase was mainly attributable to higher volumes transshipped in the grain port terminal. Revenue from the Cabotage Business decreased by $1.9 million or 16.6% to $9.5 million for the three month period ended March 31, 2021, as compared to $11.4 million for the same period in 2020. The decrease was mainly attributable to lower time charter rates due to market conditions and fewer operating days. Revenue from the Barge Business remained stable at $18.8 million for both the three month periods ended March 31, 2021 and 2020. For the three month period ended March 31, 2021, time charter revenues decreased by $6.0 million or 74.6% to $2.1 million, as compared to $8.1 million for the same period in 2020, mainly due to the expiration of certain legacy time charter contracts, partially offset by a $6.0 million increase in CoA/voyage revenues to $16.8 million for the three month period ended March 31, 2021, as compared to $10.8 million for the same period in 2020, mainly due to higher CoA/voyage revenues of convoys previously under time charter contracts.

Sales of Products- Liquid Port Terminal: For the three month period ended March 31, 2021, Navios Logistics’ sales of products decreased by $4.6 million or 59.5% to $3.2 million, as compared to $7.8 million for the same period in 2020. This decrease was attributable to the decrease in the Paraguayan liquid port’s volume of products sold.

Cost of Sales

The following table presents our costs of sales for the three month periods ended March 31, 2021 and 2020:

	Three month period ended March 31, 2021								Three month period ended March 31, 2020
	PortTerminalBusiness		CabotageBusiness		BargeBusiness		Total		PortTerminalBusiness		CabotageBusiness		BargeBusiness		Total
Time charter, voyage and port terminal expenses		4,047		1,185		6,105		11,337		3,955		580		6,337		10,872
Direct vessel expenses		—		5,528		7,177		12,705		—		5,540		5,661		11,201
Cost of products sold-Liquid Port Terminal		3,041		—		—		3,041		7,757		—		—		7,757
Depreciation and amortization		2,212		1,374		4,702		8,288		2,066		1,525		4,606		8,197
Total cost of sales	$	9,300	$	8,087	$	17,984	$	35,371	$	13,778	$	7,645	$	16,604	$	38,027

Time Charter, Voyage and Port Terminal Expenses: For the three month period ended March 31, 2021, time charter, voyage and port terminal expenses increased by $0.4 million or 4.3% to $11.3 million as compared to $10.9 million for the same period in 2020. Time charter and voyage expenses of the Cabotage Business increased by $0.6 million or 104.3% to $1.2 million for the three month period ended March 31, 2021 as compared to $0.6 million for the same period in 2020, mainly due to higher voyage expenses, mainly fuel, related to more spot voyages performed. Time charter and voyage expenses of the Barge Business for the three month period ended March 31, 2021 decreased by $0.2 million or 3.6% to $6.1 million, as compared to $6.3 million for the same period in 2020, mainly due to lower charter-in expenses. Port terminal expenses of the Port Terminal Business remained stable at $4.0 million for both the three month periods ended March 31, 2021 and 2020.

Direct Vessel Expenses: Direct vessel expenses increased by $1.5 million or 13.4% to $12.7 million for the three month period ended March 31, 2021, as compared to $11.2 million for the same period in 2020. Direct vessel expenses of the Barge Business increased by $1.5 million or 26.8% to $7.2 million for the three month period ended March 31, 2021, as compared to $5.7 million for the same period in 2020. The increase was mainly attributable to the increased utilization of our convoys to service the demand of the COA/voyage market. Direct vessel expenses of Cabotage Business remained stable at $5.5 million for both the three month periods ended March 31, 2021 and 2020. Direct vessel expenses include crew costs, victualling costs, dockage expenses, lubricants, stores, insurance, maintenance and repairs.

Cost of Products Sold- Liquid Port Terminal: For the three month period ended March 31, 2021, Navios Logistics’ cost of products sold decreased by $4.8 million or 60.8% to $3.0 million, as compared to $7.8 million for the same period in 2020. This decrease was mainly attributable to the decrease in the Paraguayan liquid port’s volume of products sold.

Depreciation and Amortization: Depreciation and amortization expense increased by $0.1 million or 1.1% to $8.3 million for the three month period ended March 31, 2021, as compared to $8.2 million for the same period in 2020. Depreciation and amortization in the Barge Business increased by $0.1 million or 2.1% to $4.7 million for the three month period ended March 31, 2021, as compared to $4.6 million for the same period in 2020, mainly due to increased amortization of dry dock expenses. Depreciation and amortization in the Port Terminal Business increased by $0.1 million or 7.1% to $2.2 million for three month period ended March 31, 2021, as compared to $2.1 million for the same period in 2020, mainly due to increased depreciation expense of tangible assets. Depreciation and amortization in the Cabotage Business, decreased by $0.1 million or 9.9% to $1.4 million for the three month period ended March 31, 2021, as compared to $1.5 million for the same period in 2020, mainly due to reduced amortization of dry dock expenses.

Administrative Expenses

Administrative expenses remained stable at $3.4 million for both the three month periods ended March 31, 2021 and 2020. Administrative expenses, in the Port Terminal Business remained stable at $0.8 million for both the three month periods ended March 31, 2021 and 2020. Administrative expenses, in the Cabotage Business remained stable at $0.5 million for both the three month periods ended March 31, 2021 and 2020. Administrative expenses, in the Barge Business remained stable at $2.0 million for both the three month periods ended March 31, 2021 and 2020. Certain of our administrative expenses are directly charged to their respective segments, while others are allocated proportionally based on headcount.

Other Operating Income

Other operating income increased by $0.4 million or 150.7% to $0.7 million for the three month period ended March 31, 2021, as compared to $0.3 million for the same period in 2020. Other operating income, in the Port Terminal Business increased by $0.6 million to $0.6 million for the three month period ended March 31, 2021, as compared to nil for the same period in 2020, mainly due to an insurance claim settlement. Other operating income in the Barge Business decreased by $0.2 million or 75.2% to $0.1 million for the three month period ended March 31, 2021 as compared to $0.3 million for the same period in 2020, mainly due to an insurance claim settlement during the three month period ended March 31, 2020. Other operating income in the Cabotage Business was nil for both the three month periods ended March 31, 2021 and March 31, 2020.

Other Operating Expenses

Other operating expenses decreased by $0.3 million or 22.6% to $0.9 million for the three month period ended March 31, 2021, as compared to $1.2 million for the same period in 2020. Other operating expenses in the Cabotage Business decreased by $0.2 million or 23.1% to $0.4 million for the three month period ended March 31, 2021 as compared to $0.6 million for the same period in 2020. This decrease was mainly due to the decreased taxes other than income taxes, derived from a decrease in revenues in the Cabotage Business during the same period. Other operating expenses, in the Barge Business decreased by $0.1 million or 22.3% to $0.5 million for the three month period ended March 31, 2021, as compared to $0.6 million for the same period in 2020. This decrease was mainly due to the decreased taxes other than income taxes. Other operating expenses in the Port Terminal Business was nil for both the three month period ended March 31, 2021 and March 31, 2020.

Allowance for Expected Credit Losses on Financial Assets

Allowance for expected credit losses on financial assets decreased by $0.3 million or 64.5% to $0.1 million for the three month period ended March 31, 2021, as compared to $0.4 million for the same period in 2020. Allowance for expected credit losses on financial assets, in the Cabotage Business decreased by $0.2 million to nil for the three month period ended March 31, 2021 as compared to $0.2 million for the same period in 2020. Allowance for expected credit losses on financial assets, in the Barge Business decreased by $0.1 million to $0.1 million for the three month period ended March 31, 2021, as compared to $0.2 million for the same period in 2020. The decrease was partially mitigated by an increase in allowance for expected credit losses on financial assets in the Port Terminal Business by $0.1 million for the three month period ended March 31, 2021, as compared to nil for the same period in 2020.

Operating Profit/(Loss)

Operating profit increased by $0.1 million or 0.6% to $14.0 million for the three month period ended March 31, 2021, as compared to $13.9 million for the same period in 2020. Operating profit in the Port Terminal Business increased by $3.4 million or 29.3% to $15.2 million for the three month period ended March 31, 2021, as compared to $11.8 million for the same period in 2020. The increase was mainly attributable to (a) higher revenue and (b) higher other operating income, partially mitigated by higher depreciation and amortization. Operating profit in the Cabotage Business decreased by $2.1 million or 82.6% to $0.4 million for the three month period ended March 31, 2021, as compared to $2.5 million for the same period in 2020. The decrease was mainly attributable to (a) lower revenue and (b) higher time charter, voyage and port terminal expenses, partially offset by (a) lower other operating expenses, (b) lower allowance for expected credit losses on financial assets and (c) lower depreciation and amortization. Operating loss in the Barge Business increased by $1.3 million to $1.7 million for the three month period ended March 31, 2021 as compared to $0.4 million for the same period in 2020. The increase was mainly attributable to (a) higher direct vessel expenses, (b) lower other operating income and (c) higher depreciation and amortization, partially offset by (a) lower time charter, voyage and port terminal expenses, (b) lower allowance for expected credit losses on financial assets, (c) lower administrative expenses, and (d) lower other operating expenses.

Finance Income

Finance income decreased by $0.5 million or 22.1% to $1.8 million for the three month period ended March 31, 2021, as compared to $2.3 million for the same period in 2020. Finance income, in the Port Terminal Business decreased by $0.3 million or 32.6% to $0.7 million for the three month period ended March 31, 2021, as compared to $1.0 million for the same period in 2020. Finance income, in the Barge Business decreased by $0.3 million or 29.2% to $0.8 million for the three month period ended March 31, 2021, as compared to $1.1 million for the same period in 2020. These decreases were partially offset by a $0.2 million increase in Finance income, in the Cabotage Business, to $0.4 million or 59.2% for the three month period ended March 31, 2021, as compared to $0.2 million for the same period in 2020. The overall decrease was mainly due to the lower finance income rate from the Navios Holdings Loan Agreement during the three month period ended March 31, 2021 as compared to the same period in 2020. Following the amendment of the Navios Holdings Loan Agreement during December 2019, and as a result of the redemption of the 2022 Notes and Term Loan B Facility in July 2020 and the issuance of 2025 Notes (as defined below), the interest rate on the secured credit facility decreased to 10.0% from 12.75%. For the three month period ended March 31, 2021, finance income is allocated into our segments pro rata to the book value of our tangible assets. For the three month period ended March 31, 2020, finance income was allocated into our segments pro rata to the book value of our interest-bearing loans and borrowings.

Finance Costs

Finance cost increased by $5.2 million or 54.1% to $14.6 million for the three month period ended March 31, 2021, as compared to $9.4 million for the same period in 2020. Finance costs, in the Cabotage Business increased by $1.9 million or 174.7% to $2.9 million for the three month period ended March 31, 2021, as compared to $1.0 million for the same period in 2020. Finance costs, in the Barge Business increased by $1.7 million or 38.6% to $6.1 million for the three month period ended March 31, 2021, as compared to $4.4 million for the same period in 2020. Finance costs, in the Port Terminal Business increased by $1.6 million or 39.8% to $5.6 million for the three month period ended March 31, 2021, as compared to $4.0 million for the same period in 2020. These increases were mainly attributable to the higher weighted average interest rate for the three month period ended March 31, 2021, due to the issuance of the 2025 Notes (as defined below). The annualized weighted average interest rates of the Company’s total borrowings were 10.05% and 6.87% for the three month periods ended March 31, 2021 and 2020, respectively. The 2025 Notes finance cost is allocated into our segments pro rata to the book value of our tangible assets.

Foreign Exchange Differences, Net

Gain from foreign exchange differences increased by $1.1 million to $1.1 million for the three month period ended March 31, 2021, as compared to less than $0.1 million for the same period in 2020. Gain from foreign exchange differences, in the Barge Business increased by $0.7 million to $0.8 million for the three month period ended March 31, 2021, as compared to $0.1 million for the same period in 2020. Gain from foreign exchange differences, in the Port Terminal Business increased by $0.5 million to $0.4 million for the three month period ended March 31, 2021, as compared to a $0.1 million loss for the same period in 2020. Loss from foreign exchange differences, in the Cabotage Business increased by $0.1 million to $0.1 million for the three month period ended March 31, 2021, as compared to less than $0.1 million for the same period in 2020. These variations were mainly attributable to the favorable impact of the fluctuation of the U.S. dollar exchange rate against the local currencies in the different countries where we conducted our operations.

Income Tax Benefit/(Expense)

Income tax benefit increased by $0.1 million to $0.2 million for the three month period ended March 31, 2021, as compared to $0.1 million for the same period in 2020. Income tax benefit from the Barge Business increased by $0.8 million to $1.3 million for the three month period ended March 31, 2021, as compared to $0.5 million for the same period in 2020, mainly due to the impact of local foreign exchange differences for the three month period ended March 31, 2021. Income tax expense from the Cabotage Business increased by $0.7 million to $1.1 million for the three month period ended March 31, 2021, as compared to $0.4 million for the same period in 2020, mainly due to the reversal of the deferred tax asset recorded for the year ended December 31, 2019, related to impairment losses of the Cabotage Business.

Profit/(Loss) for the Period

Profit for the period decreased by $4.4 million or 63.7% to $2.5 million for the three month period ended March 31, 2021, as compared to $6.9 million for the same period in 2020. Loss for the period in the Cabotage Business increased by $4.5 million to $3.2 million for the three month period ended March 31, 2021, as compared to a $1.3 million gain for the same period in 2020. The increase was mainly attributable to (a) lower operating profit, (b) higher finance costs, (c) higher income tax benefit and (d) higher loss from foreign exchange differences, partially offset by higher finance income. Loss for the period in the Barge Business increased by $1.9 million or 62.7% to $5.0 million for the three month period ended March 31, 2021, as compared to $3.1 million for the same period in 2020. The increase was mainly attributable to (a) lower operating profit, (b) higher finance costs and (c) lower finance income, partially offset by (a) higher income tax benefit and (b) higher gain from foreign exchange differences. Profit for the period in the Port Terminal Business increased by $2.0 million or 22.5% to $10.7 million for the three month period ended March 31, 2021, as compared to $8.7 million for the same period in 2020. The increase was mainly attributable to (a) higher operating profit and (b) higher gain from foreign exchange differences, partially offset by (a) higher finance costs and (b) lower finance income.

EBITDA Reconciliation to Profit/(Loss)

EBITDA represents profit/(loss) before finance costs, net, depreciation and amortization and income taxes. EBITDA is presented because it is used by certain investors to measure a company’s operating performance. EBITDA is a “non-IFRS financial measure” and should not be considered a substitute for profit, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with IFRS or as a measure of profitability or liquidity. While EBITDA is frequently used as a measure of operating performance, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation. Some of these limitations are: (i) EBITDA does not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA does not reflect the amounts necessary to service interest on our debt and other financing arrangements; and (iii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA should not be considered as a principal indicator of our performance.

Three Month Period Ended March 31, 2021

(Expressed in thousands of U.S. dollars)	PortTerminalBusiness(unaudited)			CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total
Profit/(Loss) for the period	$	10,660		$	(3,181	)	$	(4,972	)	$	2,507
Finance income		(655	)		(355	)		(796	)		(1,806	)
Finance costs		5,606			2,857			6,093			14,556
Depreciation and amortization		2,222			1,374			4,978			8,574
Income tax expense/(benefit)		—			1,055			(1,275	)		(220	)
EBITDA	$	17,833		$	1,750		$	4,028		$	23,611

Three Month Period Ended March 31, 2020

(Expressed in thousands of U.S. dollars)	PortTerminalBusiness(unaudited)			CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total
Profit/(Loss) for the period	$	8,698		$	1,272		$	(3,056	)	$	6,914
Finance income		(972	)		(223	)		(1,124	)		(2,319	)
Finance costs		4,009			1,040			4,397			9,446
Depreciation and amortization		2,076			1,525			4,944			8,545
Income tax expense/(benefit)		—			386			(509	)		(123	)
EBITDA	$	13,811		$	4,000		$	4,652		$	22,463

Liquidity and Capital Resources

We have historically financed our capital requirements with cash flows from operations, equity contributions from stockholders, borrowings under our credit facilities and issuance of other debt. Main uses of funds have been capital expenditures for the acquisition of new vessels, new construction and upgrades at the port terminals, expenditures incurred in connection with ensuring that our owned vessels comply with international and regulatory standards, repayments of debt and payments of dividends. We may also use funds to repurchase our outstanding indebtedness from time to time. Repurchases may be made in the open market, or through privately negotiated transactions or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms we deem appropriate and subject to our cash requirements for other purposes, compliance with the covenants under our debt agreements, and other factors management deems relevant. In addition, we regularly review opportunities for acquisitions of businesses and additional vessels, development of new facilities and infrastructure, joint ventures and other corporate transactions that may be material to us. In connection with any such transactions, we may need to raise significant amounts of capital, including debt. We do not have any material contractual arrangements for such transactions at this time. See “— Working Capital”, “— Capital Expenditures” and “— Interest-bearing loans and borrowings” for further discussion of our working capital position.

The following table presents cash flow information derived from the unaudited condensed consolidated statements of cash flows of Navios Logistics for the three month periods ended March 31, 2021 and 2020.

(Expressed in thousands of U.S. dollars)	Three MonthPeriod EndedMarch 31, 2021(unaudited)			Three MonthPeriod EndedMarch 31, 2020(unaudited)
Net cash (used in)/provided by operating activities	$	(9,766	)	$	23,363
Net cash used in investing activities		(19,393	)		(4,424	)
Net cash used in financing activities		(5,406	)		(30,980	)
Net decrease in cash and cash equivalents		(34,565	)		(12,041	)
Cash and cash equivalents and restricted cash, beginning of the period		74,870			45,605
Cash and cash equivalents and restricted cash, end of period	$	40,305		$	33,564

Cash provided by operating activities for the three month period ended March 31, 2021 as compared to cash provided by operating activities for the three month period ended March 31, 2020:

Net cash from operating activities decreased by $33.1 million to $9.8 million of cash used in operating activities for the three month period ended March 31, 2021, as compared to $23.4 million of cash provided by operating activities for the same period in 2020.

In determining net cash from operating activities, profit is adjusted for the effect of certain non-cash items including depreciation and amortization which are analyzed in detail in our Consolidated Statement of Cash Flows for the Three Month Period Ended March 31, 2021 and 2020, included elsewhere in this report.

Profit is adjusted for changes in working capital in order to determine net cash (used in)/provided by operating activities.

The negative change in working capital of $1.3 million for the three month period ended March 31, 2021 resulted from a $3.4 million increase in trade receivables and contract assets, a $3.3 million increase in prepayments and other assets, partially offset by a $4.2 million increase in trade and other payables and a $1.3 million decrease in inventories.

Interest paid increased by $28.6 million to $30.8 million for the three month period ended March 31, 2021, as compared to $2.2 million for the same period in 2020. The increase was mainly attributable to the interest payment of the 2025 Notes. The 2025 Notes have interest payments due in the first and third quarters of each year, compared to the 2022 Notes that had interest payments due in the second and fourth quarters of each year.

The positive change in working capital of $3.2 million for the three month period ended March 31, 2020 resulted from a $6.2 million increase in trade and other payables, a $2.2 million decrease in inventories, partially offset by a $2.9 million increase in prepayments and other assets and a $2.3 million increase in trade receivables and contract assets.

Cash used in investing activities for the three month period ended March 31, 2021 as compared to cash used in investing activities for the three month period ended March 31, 2020:

Net cash used in investing activities increased by $15.0 million to $19.4 million for the three month period ended March 31, 2021, from $4.4 million for the same period in 2020.

Cash used in investing activities for the three month period ended March 31, 2021 was mainly the result of (a) $14.7 million in payments for the acquisition of three pushboats and 18 liquid barges, (b) $1.9 million for the construction of a crane, (c) $1.5 million in payments for the purchase of tangible assets, (d) $1.2 million in payments for the construction of our six new liquid barges and (e) $0.1 million in payments for the construction of our two new tanks.

Cash used in investing activities for the three month period ended March 31, 2020 was mainly the result of (a) $3.6 million in payments for the purchase of tangible assets, (b) $0.7 million in investment providing a secured credit facility to our parent, and (c) $0.2 million in payments for the construction of the Company’s six new liquid barges, partially mitigated by $0.1 million in collections of the Note receivable.

Cash used in financing activities for the three month period ended March 31, 2021 as compared to cash used in financing activities for the three month period ended March 31, 2020:

Net cash used in financing activities decreased by $25.6 million to $5.4 million for the three month period ended March 31, 2021, as compared to $31.0 million for the same period of 2020.

Cash used in financing activities for the three month period ended March 31, 2021 was due to (a) $3.9 million in payments made in connection with the Company’s outstanding interest-bearing loans and borrowings, (b) $1.3 million in payments for the repayment of the Notes Payable (as defined below) and (c) $0.2 million in payment for the principal portion of our lease liabilities.

Cash used in financing activities for the three month period ended March 31, 2020 was due to (a) $27.5 million dividend paid to common shareholders, (b) $2.0 million of payments made in connection with the Company’s outstanding interest-bearing loans and borrowings, (c) $1.3 million in payments for the repayment of the Notes Payable (as defined below) and (c) $0.2 million in payment for the principal portion of our lease liabilities.

Interest-Bearing Loans and Borrowings

Senior Notes

2025 Notes

On July 8, 2020, Navios Logistics and its wholly-owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Co-Issuers”) issued $500.0 million in aggregate principal amount of 2025 Notes, at a fixed rate of 10.75%. The net proceeds from the offering of the 2025 Notes were used to satisfy and discharge the indenture governing the 2022 Notes, to repay all amounts outstanding under the Term Loan B Facility and to pay certain fees and expenses related to the offering, with the balance to be used for general corporate purposes.

On or after August 1, 2022, the Co-Issuers may redeem some or all of the 2025 Notes at the redemption prices set forth in the indenture governing the 2025 Notes. In addition, before August 1, 2022, the Co-Issuers may redeem up to 35% of the aggregate principal amount of the 2025 Notes at a price equal to 110.750% of the principal amount of the 2025 Notes to be redeemed plus accrued and unpaid interest, if any, to the redemption date with an amount equal to the net cash proceeds of one or more equity offerings so long as at least 50% of the originally issued aggregate principal amount of the 2025 Notes remains outstanding. Prior to August 1, 2022, the Co-Issuers may also redeem all or a part of the 2025 Notes at a redemption price equal to the sum of: (a) 100% of the principal amount of the 2025 Notes to be redeemed; plus (b) the applicable “make-whole” premium described in the Indenture governing the 2025 Notes, plus (c) accrued and unpaid interest, if any, on the 2025 Notes to be redeemed, to (but excluding) the applicable redemption date, subject to the right of holders of notes on the relevant record date to receive interest due on all the relevant interest payment date. The Co-Issuers may also redeem all, but not less than all, of the 2025 Notes at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any, upon certain changes in law that would trigger the payment of withholding taxes. Furthermore, upon the occurrence of certain change of control events, the Co-Issuers may be required to offer to purchase 2025 Notes from holders at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any.

The 2025 Notes are senior secured obligations of the Co-Issuers and rank equal in right of payment to all of their existing and future senior indebtedness and senior in right of payment to all of their future subordinated indebtedness. The 2025 Notes are fully and unconditionally guaranteed, jointly and severally, by all of our direct and indirect subsidiaries, other than the Co-Issuer and Grimaud Ventures S.A.. The 2025 Notes are secured by (i) first priority ship mortgages on four tanker vessels servicing our Cabotage Business (the (1) Elena H, (2) Makenita H, (3) Sara H and (4) He Man H) owned by certain subsidiary guarantors (such guarantors, the “Mortgaged Vessel Guarantors”) and related assignments of earnings and insurance together with a first priority lien on the capital stock of each Mortgaged Vessel Guarantor and (ii) an assignment by way of security of the Vale port contract (collectively, the “Collateral”). The 2025 Notes will be effectively senior to all existing and future obligations of the subsidiary guarantors that own Collateral to the extent of the value of the Collateral but effectively junior to any existing and future secured obligations of the Co-Issuers and the subsidiary guarantors that are secured by assets other than the Collateral to the extent of the value of any assets securing such other obligations.

The indenture governing the 2025 Notes contains restrictive covenants that limit, among other things, the ability of the Co-Issuers and their subsidiaries to incur additional indebtedness, pay dividends and make distributions on common and preferred stock, make other restricted payments, make investments, incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all of their assets and enter into certain transactions with affiliates, in each case, subject to exclusions, and other customary covenants. The indenture governing the 2025 Notes also contains customary events of default.

As of March 31, 2021 and December 31, 2020, deferred finance costs associated with the 2025 Notes amounted to $18.6 million and $19.4 million, respectively. Finance costs associated with the 2025 Notes amounted to $13.3 million and nil for the three month periods ended March 31, 2021 and 2020, respectively.

2022 Notes

On April 22, 2014, the Co-Issuers issued $375.0 million in aggregate principal amount of Senior Notes due on May 1, 2022 (the “2022 Notes”), at a fixed rate of 7.25%. The 2022 Notes were redeemed in full on July 16, 2020 at 100% of their face amount, plus accrued and unpaid interest to the redemption date with the proceeds of the Co-Issuers’ 2025 Notes.

Finance costs associated with the 2022 Notes amounted to nil and $6.8 million for the three month periods ended March 31, 2021 and 2020, respectively.

Term Loan B Facility

On November 3, 2017, Navios Logistics and Logistics Finance, as co-borrowers, completed the issuance of a $100.0 million Term Loan B Facility (the “Term Loan B Facility”). The Term Loan B Facility bore an interest rate of LIBOR plus 475 basis points and had a four-year term with 1.0% amortization per annum. The Term Loan B Facility was repaid in full on July 8, 2020 at par plus accrued and unpaid interest to the repayment date with the proceeds of the Co-Issuers’ 2025 Notes.

Finance costs associated with the Term Loan B Facility amounted to nil and $1.6 million for the three month periods ended March 31, 2021 and 2020, respectively.

Notes Payable

In connection with the purchase of mechanical equipment for the expansion of its dry port terminal, the Company entered into an unsecured export financing line of credit for a total amount of $41,964, including all related fixed finance costs of $5,949, available in multiple drawings upon the completion of certain milestones (“Drawdown Events”). The Company incurs the obligation for the respective amount drawn by signing promissory notes (“Notes Payable”). Each drawdown is repayable in 16 consecutive semi-annual installments, starting six months after the completion of each Drawdown Event. Together with each Note Payable, the Company shall pay interest equal to six-month LIBOR. The unsecured export financing line is fully and unconditionally guaranteed by Ponte Rio S.A.. As of March 31, 2021, the Company had drawn the total available amount and the outstanding balance of Notes Payable was $16.5 million.

Finance costs associated with the Notes Payable amounted to $0.2 million and $0.3 million for the three month periods ended March 31, 2021 and 2020, respectively.

Other Indebtedness

On December 15, 2016, the Company entered into a $25.0 million facility with Banco Bilbao Vizcaya Argentaria Uruguay S.A. (“BBVA”), for general corporate purposes. On July 8, 2020, this loan was repaid in full in connection with drawing the New BBVA Facility.

On February 28, 2020, the Company entered into a $25.0 million loan facility (the “New BBVA Facility”) with BBVA, which was drawn on July 8, 2020. The New BBVA Facility was used to repay the existing loan facility with BBVA, and for general corporate purposes. The New BBVA Facility bears interest at a rate of LIBOR (180 days) plus 325 basis points, is repayable in quarterly installments with final maturity on March 31, 2022 and is secured by assignments of certain receivables. As at March 31, 2021, the outstanding balance was $19.0 million.

On May 18, 2017, the Company entered into a $14.0 million term loan facility (the “Term Bank Loan”) in order to finance the acquisition of two product tankers. The Term Bank Loan bears interest at a rate of LIBOR (90 days) plus 315 basis points and is repayable in twenty quarterly installments with a final balloon payment of $7.0 million on the last repayment date. As of March 31, 2021, the outstanding amount of the Term Bank Loan was $8.8 million. As of March 31, 2021 and December 31, 2020, unamortized deferred financing costs associated with the Term Bank Loan amounted to less than $0.1 million for both three month periods ended March 31, 2021 and 2020.

In December 2020, the Company entered into a $13.5 million seller’s credit agreement for the construction of six liquid barges to be made available by way of credit in six equal tranches. Each drawdown is repayable in 20 quarterly installments starting from the delivery of each barge. The seller’s credit for the construction of the six liquid barges bears interest at a fixed rate of 8.5%. As of March 31, 2021, the Company had drawn the total available amount and the outstanding balance was $12.7 million. Finance cost associated with the seller’s credit agreement for the construction of six liquid barges amounted to $0.3 million and nil for the three month periods ended March 31, 2021 and 2020, respectively.

In the fourth quarter of 2020, Navios Logistics entered into a purchase agreement with an unrelated third party for the acquisition of three pushboats and 18 liquid barges, (the “2020 Fleet”). The acquisition was completed on March 22, 2021, and consequently, the Company entered into a $15.0 million seller’s credit agreement for the acquisition of the 2020 Fleet. The seller’s credit agreement bears interest at a fixed rate of 5.0% per annum and is payable in three equal annual installments of $5.0 million. Finance costs associated with the seller’s credit agreement for the acquisition of the 2020 Fleet amounted to less than $0.1 million and nil for the three month periods ended March 31, 2021 and 2020, respectively.

In connection with the acquisition of Hidronave S.A. on October 29, 2009, the Company assumed a $0.8 million loan facility that was entered into by Hidronave S.A. in 2001, in order to finance the construction of the pushboat Nazira. As of March 31, 2021, the outstanding balance of the loan facility of Hidronave S.A. was less than $0.1 million. The loan facility bears interest at a fixed rate of 600 basis points. The loan is repayable in monthly installments and the final repayment must occur prior to August 10, 2021.

In connection with the loan and other long term liabilities, the Company is subject to certain covenants, commitments, limitations and restrictions.

The Company was in compliance with all the covenants as of March 31, 2021.

The annualized weighted average interest rates of the Company’s total borrowings were 10.05% and 6.87% for the three month periods ended March 31, 2021 and 2020, respectively.

The maturity table below reflects future payments of the long-term interest-bearing loans and borrowings and interest outstanding as of March 31, 2021, for the next five years and thereafter.

Year	As ofMarch 31, 2021(Amounts in millionsof U.S. dollars)
March 31, 2022	$	89.5
March 31, 2023		75.3
March 31, 2024		67.5
March 31, 2025		58.6
March 31, 2026		515.6
Total	$	806.5

Contractual Obligations

The following table summarizes our contractual obligations as of March 31, 2021:

	Less than ayear		1-2 years		2-3 years		3-4 years		More than5 years		Total
Interest-bearing loans and borrowings (excluding items below)	$	89.5	$	75.3	$	67.5	$	58.6	$	515.6	$	806.5
Lease liabilities(1)		0.9		0.8		0.7		0.6		24.1		27.1
Trade and other payables		46.7		—		—		—		—		46.7
Total	$	137.1	$	76.1	$	68.2	$	59.2	$	539.7	$	880.3

(1) We have several lease agreements with respect to our operating port terminals and various offices.

Working Capital Position

On March 31, 2021, Navios Logistics’ current assets totaled $121.9 million, while current liabilities totaled $82.3 million, resulting in a positive working capital position of $39.6 million. Our cash forecast indicates that we will generate sufficient cash for at least the next 12 months from June 14, 2021, to make the required principal and interest payments on our indebtedness, provide for the normal working capital requirements of the business and remain in a positive cash position.

Capital Expenditures

As of March 31, 2021, Navios Logistics completed the construction of six liquid barges. As of March 31, 2021, a total of $19.5 million was included under “Tangible assets” in our consolidated statement of financial position.

During the first quarter of 2021, Navios Logistics completed the construction of two new tanks in its liquid port terminal. As of March 31, 2021, a total of $1.8 million had been transferred to “Tangible assets” in the consolidated statement of financial position.

Since 2018, we acquired approximately 6.6 hectares of undeveloped land located in the Port Murtinho region, Brazil and on March 24, 2021, we acquired 2.3 additional hectares. We plan to develop this land for our port operations. As of March 31, 2021, we had paid $2.2 million for the land acquisition and capitalized expenses for the development of our port operations.

In the fourth quarter of 2020, Navios Logistics entered into a purchase agreement with an unrelated third party for the acquisition of the 2020 Fleet, for a purchase price of $30.0 million. The acquisition was completed on March 22, 2021. As of March 31, 2021, the total amount included in “Assets under construction” was $31.9 million for the acquisition of the 2020 Fleet.

As of March 31, 2021, Navios Logistics had paid $2.7 million for the construction of a crane in its grain port terminal.

Dividend Policy

The payment of dividends is at the discretion of Navios Logistics’ board of directors. Any determination as to dividend policy will be made by Navios Logistics’ board of directors and will depend on a number of factors, including the requirements of Marshall Islands law, Navios Logistics’ future earnings, capital requirements, financial condition and future prospects and such other factors as Navios Logistics’ board of directors may deem relevant. Marshall Islands law generally prohibits the payment of dividends other than from surplus, when a company is insolvent or if the payment of the dividend would render the company insolvent. Navios Logistics’ ability to pay dividends is also restricted by the terms of the indenture governing its 2025 Notes.

Because Navios Logistics is a holding company with no material assets other than the stock of its subsidiaries, its ability to pay dividends is dependent upon the earnings and cash flow of its subsidiaries and their ability to pay dividends to Navios Logistics. If there is a substantial decline in any of the markets in which Navios Logistics participates, its earnings will be negatively affected, thereby limiting its ability to pay dividends.

On February 21, 2020, Navios Logistics declared and paid a dividend in the aggregate amount of $27.5 million.

On July 10, 2020, Navios Logistics declared and paid a dividend in cash or shares of Navios Holdings in the aggregate amount of $6.4 million.

Concentration of Credit Risk

Accounts Receivable

Concentration of credit risk with respect to accounts receivables is limited due to our large number of customers, who are established international operators and have an appropriate credit history. Due to these factors, management believes that no additional credit risk, beyond amounts provided for collection losses, is inherent in our trade receivables. See “D. Risk Factors — We depend on a few significant customers for a large part of our revenues, and the loss of one or more of these customers could materially and adversely affect our revenues.”

In each of our businesses, we derive a significant part of our revenues from a small number of customers. We expect that a small number of customers will continue to generate a substantial portion of our revenues for the foreseeable future. For the three month period ended March 31, 2021, our largest customer, Vale International S.A. (“Vale”), accounted for 25.6% of our revenues, and our five largest customers accounted for approximately 56.3% of our revenues, with no such customer (other than Vale) accounting for more than 10% of our revenues. For the three month period ended March 31, 2020, our two largest customer, Vale and Petrosur S.A. (Petrosur), accounted for 40.9% and 14.8% of our revenues, respectively, and our five largest customers accounted for approximately 75.8% of our revenues, with no customer (other than Vale and Petrosur) accounting for more than 10% of our revenues. In addition, some of our customers, including many of our most significant customers, operate their own vessels and/or barges as well as port terminals. These customers may decide to cease or reduce the use of our services for various reasons, including employment of their own vessels or port terminals as applicable. The loss of any of our significant customers, including our large take-or-pay customers or the change of the contractual terms of any one of our most significant take-or-pay contracts or any significant dispute with one of these customers could materially adversely affect our financial condition and our results of operations.

If one or more of our customers does not perform under one or more contracts with us and we are not able to find a replacement contract, or if a customer exercises certain rights to terminate the contract, we could suffer a loss of revenues that could materially adversely affect our business, financial condition and results of operations.

We could lose a customer or the benefits of a contract if, among other things:

• the customer fails to make payments because of its financial inability, the curtailment or cessation of its operations, its disagreements with us or otherwise;

• the customer terminates the contract because we fail to meet their contracted storage needs;

• the customer terminates the contract because we fail to deliver the vessel within a fixed period of time, the vessel is lost or damaged beyond repair, there are serious deficiencies in the vessel or prolonged off-hire, default under the contract; or

• the customer terminates the contract because the vessel has been subject to seizure for more than a specified number of days.

Cash Deposits with Financial Institutions

Cash deposits in excess of amounts covered by government-provided insurance are exposed to loss in the event of nonperformance by financial institutions. Although we maintain cash deposits in excess of government-provided insurance limits we minimize our exposure to credit risk by dealing with a diversified group of major financial institutions.

Off-Balance Sheet Arrangements

On July 22, 2016, the Company guaranteed the compliance of certain obligations related to Edolmix S.A. and Enresur (entities wholly owned by the Company) under their respective direct user agreements with the Free Zone of Nueva Palmira, for the amounts of $0.8 million and $0.5 million, respectively.

The Company issued a guarantee and indemnity letter that guarantees the performance by Petrolera San Antonio S.A. (a consolidated subsidiary) of all its obligations to Vitol up to $12.0 million. This guarantee expires on March 1, 2022.

Legal Proceedings

The Company is subject to legal proceedings, claims and contingencies arising in the ordinary course of business. When such amounts can be estimated and the contingency is probable, management accrues the corresponding liability. While the ultimate outcome of lawsuits or other proceedings against us cannot be predicted with certainty, management does not believe the costs, individually or in aggregate, of such actions will have a material effect on our consolidated financial position, results of operations or cash flows.

Related Party Transactions

As of March 31, 2021 and December 31, 2020, the amounts due from affiliate companies were as follows:

	March 31,2021			December 31,2020
Navios Holdings (Parent)	$	76,843		$	75,077
Navios Shipmanagement Inc. (Other related party)		(9	)		282
Total	$	76,834		$	75,359

Amounts due from affiliate companies do not accrue interest and do not have a specific due date for their settlement apart from the Navios Holdings Loan Agreement (as defined below).

The Navios Holdings Loan Agreement: On April 25, 2019, Navios Logistics agreed to lend Navios Holdings up to $50.0 million on a secured basis (the “Navios Holdings Loan Agreement”) to be used for general corporate purposes, including the repurchase of Navios Holdings’ 7.375% First Priority Ship Mortgage Notes due 2022 (the “Navios Holdings 2022 Notes”). The secured credit facility is secured by Navios Holdings 2022 Notes purchased with secured credit facility funds. The secured credit facility included an arrangement fee of $0.5 million and bears fixed interest of 12.75% for the first year and 14.75% for the second year. The secured credit facility also includes negative covenants substantially similar to the 2022 Notes and customary events of default. On December 2, 2019, Navios Logistics agreed to increase the secured credit facility by $20.0 million. Following this amendment, as a result of the redemption of the 2022 Notes and Term Loan B Facility in July 2020 and the issuance of 2025 Notes, (a) the interest rate on the secured credit facility decreased to 10.0% and (b) the maturity of the secured credit facility was extended to December 2024, and is repayable in four equal annual installments. Effective as of May 2021, and upon the release of certain collateral, the facility bears interest of 13.0% per annum. As of March 31, 2021, the full amount was drawn under the secured credit facility. The arrangement fee is amortized in income following the effective interest rate method over the life of the credit facility, resulting in $0.2 million deferred income as of March 31, 2021. For the three month period ended March 31, 2021, interest income related to Navios Holdings Loan Agreement amounted to $1.8 million. As of March 31, 2021, an amount of $6.7 million ($5.2 million as of December 31, 2020) was included under “Financial assets at amortized cost (related party)” in our statement of financial position related to accrued interest to be collected from Navios Holdings.

On June 24, 2020, we entered into a deed of assignment and assumption with our wholly-owned subsidiary, Grimaud and Anemos Maritime Holdings Inc. in respect of the Navios Holdings Loan, in which we assigned its legal and beneficial right, title and interest in the Navios Holdings Loan to Grimaud. On June 25, 2020, Grimaud agreed to amend the Navios Holdings Loan Agreement to amend the interest payment date in respect of the Navios Holdings Loan and to allow a portion of the total interest payable in respect of the Navios Holdings Loan to be effected in common shares of Navios Holdings. On July 10, 2020, Navios Holdings issued 2,414,263 shares of common stock to Grimaud and paid Grimaud $6.4 million in satisfaction of the interest payable in respect of the Navios Holdings Loan.

General and administrative expenses: On August 29, 2019 Navios Logistics entered into an assignment agreement with Navios Corporation (“NC”) and Navios Shipmanagement Inc. (“NSM”), whereby the administrative services agreement originally entered into between Navios Logistics and Navios Holdings on April 12, 2011, first assigned to NC on May 28, 2014 and subsequently amended on April 6, 2016 (extending the duration of the agreement until December 2021), was assigned from NC to NSM. Thereafter NSM will continue to provide certain administrative management services to Navios Logistics. NSM will be reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. Total general and administrative fees charged for the three month period ended March 31, 2021 amounted to $0.3 million ($0.3 million for the three month period ended March 31, 2020).

Lodging and travel services: Navios Logistics obtains lodging and travel services from Empresa Hotelera Argentina S.A./(NH Lancaster), Divijet S.A., Trace Capital and Pit Jet S.A., all owned by members of the Lopez family, including Claudio Pablo Lopez, Navios Logistics’ Chief Executive Officer and Vice Chairman and Carlos Augusto Lopez, Navios Logistics’ Chief Commercial Officer—Shipping Division, each of whom has no controlling interest in those companies. Total charges were less than $0.1 million for the three month period ended March 31, 2021, (less than $0.1 million for the three month period ended March 31, 2020), and amounts payable amounted to less than $0.1 million as of March 31, 2021 and less than $0.1 million as of December 31, 2020.

Quantitative and Qualitative Disclosures about Market Risks

We are exposed to certain risks related to interest rate, foreign currency, fuel price inflation and time charter hire rate fluctuation. Risk management is carried out under policies approved by executive management.

Interest Rate Risk:

Debt Instruments—As of March 31, 2021 and December 31, 2020, Navios Logistics had a total of $572.0 million and $560.0 million, respectively, in long-term indebtedness. The debt is dollar denominated.

Interest rates on the Nazira Loan, the seller’s credit for the construction of six liquid barges, the 2025 Notes and the credit agreement for the acquisition of the 2020 Fleet are fixed and, therefore, changes in interest rates affect their fair value, which as of March 31, 2021 was less than $0.1 million, $12.7 million, $558.0 million and $15.0 million, respectively, but do not affect the related finance cost. The interest on the Notes Payable, the New BBVA Facility and the Term Bank loan is at a floating rate and, therefore, changes in interest rates would affect their interest rate and related finance cost. As of March 31, 2021, the amount outstanding under the Company’s floating rate loan facilities was $44.2 million. A change in the LIBOR rate of 100 basis points would increase finance cost for the three month period ended March 31, 2021 by $0.4 million.

For a detailed discussion of Navios Logistics’ debt instruments refer to section “Interest-Bearing Loans and Borrowings” included elsewhere in this document.

Foreign Currency Transactions:

We are exposed to foreign currency exchange transaction risk related to funding our operations. For the three month period ended March 31, 2021 and 2020 approximately 50.3%, and 43.2%, respectively, of our expenses were incurred in currencies other than U.S. dollars. Further, for the three month period ended March 31, 2021, approximately 22%, 18% and 10% of the Company’s $30.5 million of combined cost of (a) time charter, voyage and port terminal expenses, (b) direct vessels expenses, (c) cost of products and (d) administrative expenses, net of depreciation (“Combined Cost”), were denominated in Argentinean pesos, Paraguayan guaranies and Uruguayan pesos, respectively. Comparatively, the same foreign currencies accounted for approximately 19%, 15% and 9%, respectively, of our $33.2 million of Combined Cost for the three month period ended March 31, 2020. For the three month periods ended March 31, 2021 and 2020, Brazilian reais accounted for less than 1% of our Combined Cost.

For the three month period ended March 31, 2021, a 1.00% change in the exchange rates between the U.S. dollar and Argentinean pesos, Paraguayan guaranies and Uruguayan pesos would change our profit for the year by $0.1 million, $0.1 million and less than $0.1 million, respectively. Comparatively, a 1.00% change in the same exchange rates would change our profit for the period ended March 31, 2020 by $0.1 million, less than $0.1 million and less than $0.1 million, respectively.

Inflation and Fuel Price Increases

See “Factors Affecting Navios Logistics’ Results of Operations.”

Critical Accounting Policies

The Navios Logistics’ interim condensed consolidated financial statements have been prepared in accordance with IFRS. The preparation of these financial statements requires Navios Logistics to make estimates in the application of its accounting policies based on the best assumptions, judgments and opinions of management.

The Company’s most critical accounting policies and estimates are those that involve subjective decisions or assessments and are included in the Company’s 2020 Form 20-F.

Recent Accounting Pronouncements

The Company’s recent accounting pronouncements are included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	Page
NAVIOS SOUTH AMERICAN LOGISTICS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF MARCH 31, 2021 AND DECEMBER 31, 2020		F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2021 AND 2020		F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2021 AND 2020		F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2021 AND 2020		F-5
CONDENSED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)		F-6

F-1

NAVIOS SOUTH AMERICAN LOGISTICS INC.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Expressed in thousands of U.S. dollars)

	Notes		March 31,2021(unaudited)		December 31,2020
ASSETS
Non-current assets
Tangible assets		5		536,332		520,811
Assets under construction		5		35,190		20,886
Intangible assets		6		155,141		155,834
Right-of-use assets		8		7,414		7,275
Net investment in the lease		8		153		190
Deferred tax assets				67		691
Intercompany receivable loan from parent (related party), net		9		52,412		69,833
Other assets				6,729		5,082
Total non-current assets				793,438		780,602
Current Assets
Inventories				8,648		9,901
Trade receivables		4		36,184		34,190
Contract assets		4		2,163		906
Prepayments and other assets				10,044		6,700
Cash and cash equivalents				40,305		74,870
Intercompany receivable loan from parent (related party), net		9		17,437		—
Financial assets at amortized cost (related party)		9		6,994		5,244
Net investment in the lease		8		152		110
Total current assets				121,927		131,921
Total Assets				915,365		912,523
EQUITY and LIABILITIES
Equity
Issued capital				20		20
Share premium				233,441		233,441
Retained earnings				62,838		60,331
Total equity				296,299		293,792
Liabilities
Non-current liabilities
Interest-bearing loans and borrowings		7		520,771		517,791
Lease liabilities		8		7,118		6,945
Provisions				496		451
Deferred tax liabilities				7,874		8,583
Income tax payable				52		61
Other non-current liabilities				417		289
Total non-current liabilities				536,728		534,120
Current liabilities
Trade and other payables				46,664		58,889
Contract liabilities		4		2,143		2,011
Interest-bearing loans and borrowings		7		32,633		22,800
Lease liabilities		8		898		911
Total current liabilities				82,338		84,611
Total liabilities				619,066		618,731
Total equity and liabilities				915,365		912,523

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-2

NAVIOS SOUTH AMERICAN LOGISTICS INC.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

(Expressed in thousands of U.S. dollars)

	Note		Three monthperiod endedMarch 31, 2021(unaudited)			Three monthperiod endedMarch 31, 2020(unaudited)
Revenue		4		53,036			56,554
Cost of sales		4		(35,371	)		(38,027	)
Gross profit				17,665			18,527
Administrative expenses		4		(3,368	)		(3,368	)
Other operating income				707			282
Other operating expenses				(899	)		(1,162	)
Allowance for expected credit losses on financial assets		4		(145	)		(408	)
Operating profit				13,960			13,871
Finance income				1,806			2,319
Finance costs				(14,556	)		(9,446	)
Foreign exchange differences, net				1,077			47
Profit before tax				2,287			6,791
Income tax benefit				220			123
Profit for the period				2,507			6,914

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-3

NAVIOS SOUTH AMERICAN LOGISTICS INC.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Expressed in thousands of U.S. dollars)

	Issuedcapital		Sharepremium		Retainedearnings			TotalEquity
Balance as at January 1, 2021		20		233,441		60,331			293,792
Profit for the period		—		—		2,507			2,507
Balance as at March 31, 2021		20		233,441		62,838			296,299
Balance as at January 1, 2020		20		233,441		82,543			316,004
Profit for the period		—		—		6,914			6,914
Dividends		—		—		(27,500	)		(27,500	)
Balance as at March 31, 2020		20		233,441		61,957			295,418

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-4

NAVIOS SOUTH AMERICAN LOGISTICS INC.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Expressed in thousands of U.S. dollars)

	Notes		Three monthperiod endedMarch 31,2021(unaudited)			Three monthperiod endedMarch 31,2020(unaudited)
Operating activities
Profit before tax				2,287			6,791
Adjustments to reconcile profit before tax to net cash flows:
Depreciation of tangible assets		5		7,684			7,650
Amortization of intangible assets		6		693			693
Amortization of right-of-use assets		8		197			202
Movements in provisions				190			392
Finance income				(1,806	)		(2,319	)
Finance costs				14,556			9,446
Working capital movements				(1,328	)		3,195
Increase in other assets				(1,647	)		(429	)
Increase/(decrease) in other non-current liabilities				128			(29	)
				20,954			25,592
Interest received				40			17
Interest paid				(30,751	)		(2,234	)
Income tax paid				(9	)		(12	)
Net cash flows (used in)/provided by operating activities				(9,766	)		23,363
Investing activities
Acquisition of tangible assets		5		(1,861	)		(3,396	)
Acquisition of assets under construction		5		(17,532	)		(402	)
Loan to parent Company, net of deferred interest income (related party)				—			(705	)
Proceeds from net investment in the lease				—			79
Net cash flows used in investing activities				(19,393	)		(4,424	)
Financing activities
Payment of principal portion of lease liabilities		8		(176	)		(174	)
Repayment of long-term debt and payment of principal		7		(3,919	)		(2,042	)
Repayment of notes payable		7		(1,311	)		(1,264	)
Dividends paid				—			(27,500	)
Net cash flows used in financing activities				(5,406	)		(30,980	)
Net decrease in cash and cash equivalents				(34,565	)		(12,041	)
Cash and cash equivalents at January 1				74,870			45,605
Cash and cash equivalents at March 31				40,305			33,564
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Non-cash investing and financing activities:
Transfers from assets under construction		5		21,344			—
Proceeds from Seller’s credit agreement for the construction of six liquid barges		7		2,246			—
Proceeds from Seller’s credit agreement for the acquisition of the 2020 Fleet		7		15,000			—
Assets under construction				(870	)		—

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

F-5

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 1. CORPORATE INFORMATION

Navios South American Logistics Inc. (“Navios Logistics” or the “Company”) was incorporated under the laws of the Republic of the Marshall Islands on December 17, 2007. Navios Logistics believes it is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics is focused on providing its customers integrated transportation, storage and related services through its port facilities, its large, versatile fleet of dry and liquid cargo barges and its product tankers. Navios Logistics serves the needs of a number of growing South American industries, including mineral and grain commodity providers as well as users of refined petroleum products. As of March 31, 2021, Navios Maritime Holdings Inc. (“Navios Holdings”) owned 63.8% of Navios Logistics’ stock.

NOTE 2: BASIS OF PREPARATION, ACCOUNTING POLICIES AND SIGNIFICANT FACTORS AFFECTED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(a) Basis of Preparation

The interim condensed unaudited consolidated financial statements of Navios Logistics have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”), and present the financial position, results of operations and cash flows of the Company on a going concern basis.

These interim condensed consolidated financial statements do not include all information and disclosures required for the annual consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes as of December 31, 2020, 2019 and 2018 and for the years ended December 31, 2020, 2019 and 2018.

The consolidated financial statements have been prepared on a historical cost basis, except where fair value accounting is specifically required by IFRS, as explained in the accounting policies below. The consolidated financial statements are presented in U.S. dollars which is also the currency of the Company’s primary economic environment and the functional currency of the major and majority of the Company’s subsidiaries. All values are rounded to the nearest thousand (U.S.D. 000), except when otherwise indicated.

On June 14, 2021, the interim condensed consolidated financial statements for the three-month period ended March 31, 2021 have been authorized for issue by the Board of Directors.

(b) Basis of Consolidation

The interim condensed consolidated financial statements comprise the financial statements of Navios Logistics and its subsidiaries. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

F-6

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Subsidiaries included in the Consolidation:

The interim condensed consolidated financial statements of the Company include:

Company Name

Country ofIncorporation

Nature

Percentage ofOwnership

Statement of income

2021

2020

Corporacion Navios S.A.

Uruguay

Port-Facility Owning Company

100

1/1-3/31

Energias Renovables del Sur S.A.

Uruguay

Land Owning Company

100

1/1-3/31

Nauticler S.A.

Uruguay

Sub-Holding Company

100

1/1-3/31

Compania Naviera Horamar S.A.

Argentina

Vessel-Operating Management Company

100

1/1-3/31

Compania de Transporte Fluvial International S.A.

Uruguay

Sub-Holding Company

100

1/1-3/31

Ponte Rio S.A.

Uruguay

Operating Company

100

1/1-3/31

HS Tankers Inc.

Panama

Tanker-Owning Company

100

1/1-3/31

HS Navigation Inc.

Panama

Tanker-Owning Company

100

1/1-3/31

HS Shipping Ltd. Inc.

Panama

Tanker-Owning Company

100

1/1-3/31

HS South Inc.

Panama

Tanker-Owning Company

100

1/1-3/31

Petrovia Internacional S.A.

Uruguay

Land-Owning Company

100

1/1-3/31

Mercopar S.A.

Paraguay

Operating/Barge-Owning Company

100

1/1-3/31

Petrolera San Antonio S.A.

Paraguay

Port Facility-Owning Company

100

1/1-3/31

Stability Oceanways S.A.

Panama

Barge and Pushboat-Owning Operating Company

100

1/1-3/31

Hidronave South American Logistics S.A.

Brazil

Pushboat-Owning Company

100

1/1-3/31

Horamar do Brasil Navegação Ltda

Brazil

Non-Operating Company

100

1/1-3/31

Navarra Shipping Corporation

Marshall Is.

Tanker-Owning Company

100

1/1-3/31

Pelayo Shipping Corporation

Marshall Is.

Tanker-Owning Company

100

1/1-3/31

Navios Logistics Finance (US) Inc.

Delaware

Operating Company

100

1/1-3/31

Varena Maritime Services S.A.

Panama

Barge and Pushboat-Owning OperatingCompany

100

1/1-3/31

Honey Bunkering S.A.

Panama

Tanker-Owning Company

100

1/1-3/31

Naviera Alto Parana S.A.

Paraguay

Operating Company

100

1/1-3/31

Edolmix S.A.

Uruguay

Port-Terminal Rights Owning Company

100

1/1-3/31

Cartisur S.A.

Uruguay

Non-Operating Company

100

1/1-3/31

NP Trading S.A.

British VirginIslands

Sub-Holding Company

100

1/1-3/31

Ruswe International S.A.

Uruguay

Barge-Operating Company

100

1/1-3/31

Delta Naval Trade S.A.

Panama

Non-Operating Company

100

1/1-3/31

Terra Norte Group S.A.

Paraguay

Non-Operating Company

100

1/1-3/31

Corporacion Navios Granos S.A.

Uruguay

Port-Facility Owning Company

100

1/1-3/31

Docas Fluvial do Porto Murtinho S.A.

Brazil

Land Owning Company

1/1-3/31

Siriande S.A.

Uruguay

Non-Operating Company

100

1/1-3/31

Grimaud Ventures S.A. (1)

Marshall Is.

Financial Asset Holder Company

100

1/1-3/31

1/21-3/31

(1) This company was established during the three month period ended March 31, 2020.

The accounting policies and methods of computation used in the preparation of the interim condensed consolidated financial statements are consistent with those applied in the preparation of the consolidated financial statements for the year ended December 31, 2020 and have been consistently applied in all periods presented in this report except for the following IFRSs which have been adopted by the Company as of January 1, 2021. Amendments and interpretations that apply for the first time in 2021 do not have a significant impact on the interim condensed consolidated financial statements of the Company for the three-month period ended March 31, 2021. These are also disclosed below.

F-7

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

• Conceptual Framework in IFRS standards:

The IASB issued the revised Conceptual Framework for Financial Reporting on March 29, 2018. The Conceptual Framework sets out a comprehensive set of concepts for financial reporting, standard setting, guidance for preparers in developing consistent accounting policies and assistance to others in their efforts to understand and interpret the standards. IASB also issued a separate accompanying document, Amendments to References to the Conceptual Framework in IFRS Standards, which sets out the amendments to affected standards in order to update references to the revised Conceptual Framework. Its objective is to support the transition to the revised Conceptual Framework for companies that develop accounting policies using the Conceptual Framework when no IFRS Standard applies to a particular transaction.

• IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of ‘material’ (Amendments).

The Amendments clarify the definition of ‘material’ and how it should be applied. The new definition states that, ‘Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity’. In addition, the explanations accompanying the definition have been improved. The Amendments also ensure that the definition of material is consistent across all IFRS Standards.

• IFRS 9, IAS 39 and IFRS 7 (Amendments) “Interest rate benchmark reform”:

The Amendments are effective for annual periods beginning on or after January 1, 2020 and must be applied retrospectively. In September 2019, the IASB issued amendments to IFRS 9, IAS 39 and IFRS 7, which concludes phase one of its work to respond to the effects of Interbank Offered Rates (IBOR) reform on financial reporting. Phase two will focus on issues that could affect financial reporting when an existing interest rate benchmark is replaced with a risk-free interest rate (an RFR). The amendments published, deal with issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark with an alternative interest rate and address the implications for specific hedge accounting requirements in IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement, which require forward-looking analysis. The amendments provided temporary reliefs, applicable to all hedging relationships that are directly affected by the interest rate benchmark reform, which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark with an alternative nearly risk-free interest rate. There are also amendments to IFRS 7 Financial Instruments: Disclosures regarding additional disclosures around uncertainty arising from the interest rate benchmark reform.

• IFRS 3: Business Combinations (Amendments)

The IASB issued amendments to the Definition of a Business (Amendments to IFRS 3) aimed at resolving the difficulties that arise when an entity determines whether it has acquired a business or a group of assets. The Amendments are effective for business combinations for which the acquisition date is in the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period, with earlier application permitted.

F-8

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

(d) Impact of Standards issued but not yet effective and not early adopted

The Company has not early adopted any other of the following standards, interpretations or amendments that have been issued but are not yet effective. In addition, the Company assessed all standards, interpretations and amendments issued but not yet effective, and concluded that they will not have any significant impact on the consolidated financial statements.

• Amendment to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015, the IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting.

• IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Amendments)

The amendments are effective for annual reporting periods beginning on or after January 1, 2022 with earlier application permitted. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect the presentation of liabilities in the statement of financial position and do not change existing requirements around measurement or timing of recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also, the amendments clarify the classification requirements for debt which may be settled by the company issuing its own equity instruments.

• IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well as Annual Improvements (Amendments)

The amendments are effective for annual periods beginning on or after January 1, 2022 with earlier application permitted. The IASB has issued narrow-scope amendments to the IFRS Standards as follows:

• IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

• IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss.

• IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of fulfilling a contract for the purpose of assessing whether a contract is onerous.

• Annual Improvements make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases

F-9

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

• IFRS 16 Leases-Covid 19 Related Rent Concessions (Amendment)

The amendment applies, retrospectively, to annual reporting periods beginning on or after June 1, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue at May 28, 2020. IASB amended the standard to provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. The amendment provides a practical expedient for the lessee to account for any change in lease payments resulting from the COVID-19 related rent concession the same way it would account for the change under IFRS 16, if the change was not a lease modification, only if all of the following conditions are met:

• The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change.

• Any reduction in lease payments affects only payments originally due on or before June 30, 2021.

• There is no substantive change to other terms and conditions of the lease.

(e) Accounting policies and the use of estimates

The preparation of the interim condensed consolidated financial statements, in accordance with IFRS, requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the interim condensed consolidated financial statements are disclosed where considered necessary. Estimates and judgements are discussed in detail in Note 2(y) in the annual consolidated financial statements for the year ended December 31, 2020. Such estimates and judgments are continuously evaluated and are based on historical experience and other factors, including expectations of future events as assessed to be reasonable under the present circumstances.

(f) Seasonality

Certain of the Navios Logistics’ businesses have seasonality aspects, and seasonality affects the results of Navios Logistics’ operations and revenues, particularly in the first and last quarters of each year. Generally, the high season for the Barge Business is the period between February and July as a result of the South American harvest and higher river levels. Any growth in production and transportation of commodities may offset part of this seasonality. Extremely low water levels can adversely affect volumes transported to the extent that water levels are not high enough to accommodate the draft of a heavily laden vessel, in which case a vessel may be only partially loaded, generating lower revenue under agreements where revenue is based on volume of cargo loaded, or such vessels may be prevented entirely from loading and navigating. In addition, low water levels create difficult navigation conditions, causing voyages to last longer, incur increased voyage expenses and reducing the effective available carrying capacity of the vessel for the year. During the South American late spring and summer, mainly from November to January, the low level of water in the northern Hidrovia Waterway could adversely affect Navios Logistics’ operations because the water level is not high enough to accommodate the draft of a heavily laden vessel. Such low levels also adversely impact Navios Logistics’ ability to employ convoys as the water level towards the banks of the river may be too low to permit vessel traffic even if the middle of the river is deep enough to permit passage. With respect to the Dry Port Terminal operations in Uruguay, the high season is mainly from April to September, linked to the arrival of the first barges down the river and with certain vessels’ logistics operations. Navios Logistics’ Liquid Port Terminal operations in Paraguay and its Cabotage Business are not significantly affected by seasonality as the operations of the Liquid Port and Cabotage Business are primarily linked to refined petroleum products.

(g) The recent global outbreak of novel coronavirus disease (COVID-19)

The coronavirus or other epidemics or pandemics could potentially result in delayed deliveries of vessels or port facilities that we may have under construction, disrupt our operations and significantly affect global markets, affecting the demand for our services, the operation of our port terminal facilities, global demand for commodities, as well as the price of regional freights and hires, our port tariffs, and otherwise disrupt the operations of our customers and suppliers.

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NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

If the impact of coronavirus continues or worsens, we may be unable to charter our vessels at the rates or for the length of time we currently expect, commence or complete the construction of our planned port terminal facilities in Port Murtinho, Brazil and in Nueva Palmira, Uruguay. The effects of the coronavirus remain uncertain, and, should customers be under financial pressure, this could negatively affect our charterers’ and clients’ business, financial conditions and their willingness or ability to perform their obligations to us or could cause a decrease in the services that they hire from us. The loss or termination of any of our contracts, or a decline in payments thereunder, could have a material adverse effect on our business, results of operations and financial condition.

Any prolonged measure may affect our normal operations. All these measures have further affected the process of construction and repair of vessels, as well as the presence of workers in shipyards, of administrative personnel in their offices, and of seafarers. Any prolonged restrictive measures in order to control the novel coronavirus or other adverse global public health developments may have a material and adverse effect on our business operations and demand for our services generally.

NOTE 3: SEGMENT INFORMATION

Current accounting guidance establishes standards for reporting information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial reports issued to shareholders. Operating segments are components of a company of which separate financial information is available that is regularly evaluated by the chief operating decision makers in deciding how to allocate resources and assess performance. Chief operating decision makers use profit to evaluate operating performance of each segment. The guidance also establishes standards for related disclosures about a company’s products and services, geographical areas and major customers. The Company has determined that its reportable segments are those that are based on the Company’s method of internal reporting. Navios Logistics has three reportable segments: Port Terminal Business, Barge Business and Cabotage Business. The Port Terminal Business includes the dry port terminal operations and the liquid port terminal operations. A general description of each segment follows:

The Port Terminal Business segment

This segment includes the operating results of Navios Logistics’ dry port terminal and liquid port terminal operations.

(i) Dry port terminal operations

Navios Logistics owns and operates the largest independent bulk transfer and storage port terminal facilities in Uruguay based on throughputs. Its dry port terminal operations are comprised of two port terminals, one for agricultural and forest-related exports and one for mineral-related exports which are located in an international tax-free trade zone in the port of Nueva Palmira, Uruguay, at the convergence of the Parana and Uruguay rivers.

(ii) Liquid port terminal operations

Navios Logistics owns and operates an up-river port terminal with tank storage for refined petroleum products, oil and gas in San Antonio, Paraguay, approximately 17 miles by river from the capital of Asuncion. Its port terminal is one of the largest independent storage facilities for crude and petroleum products in Paraguay based on storage capacity.

The Barge Business segment

Navios Logistics services the Argentine, Bolivian, Brazilian, Paraguayan and Uruguayan river transportation markets through its fleet. Navios Logistics operates different types of pushboats and wet and dry barges for delivering a wide range of dry and liquid products between ports in the Parana, Paraguay and Uruguay River systems in South America (the Hidrovia or the “waterway”). Navios Logistics contracts its vessels either on a time charter basis or on a CoA basis.

The Cabotage Business segment

Navios Logistics owns and operates ocean-going vessels to support the transportation needs of its customers in the South American coastal trade business. Its fleet consists of six ocean-going product tanker vessels, a river and estuary tanker vessel and a bunker vessel. Navios Logistics contracts its vessels either on a time charter basis or on a CoA basis.

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NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Inter-segment transactions, if any, are accounted for at current market prices.

The following table describes the results of operations of the three segments, the Port Terminal Business segment, the Barge Business segment and the Cabotage Business segment for the three month period ended March 31, 2021 and 2020:

	Three month period ended March 31, 2021
	PortTerminalBusiness			CabotageBusiness			BargeBusiness			Total
Revenue		24,772			9,477			18,787			53,036
Cost of sales		(9,300	)		(8,087	)		(17,984	)		(35,371	)
Gross profit		15,472			1,390			803			17,665
Administrative expenses		(797	)		(524	)		(2,047	)		(3,368	)
Other operating income		636			1			70			707
Other operating expenses		(1	)		(435	)		(463	)		(899	)
Expected credit losses on financial assets		(73	)		—			(72	)		(145	)
Operating profit/(loss)		15,237			432			(1,709	)		13,960
Finance income		655			355			796			1,806
Finance costs		(5,606	)		(2,857	)		(6,093	)		(14,556	)
Foreign exchange differences, net		374			(56	)		759			1,077
Profit/(Loss) before tax		10,660			(2,126	)		(6,247	)		2,287
Income tax (expense)/benefit		—			(1,055	)		1,275			220
Profit/(loss) for the period		10,660			(3,181	)		(4,972	)		2,507

	Three month period ended March 31, 2020
	PortTerminalBusiness			CabotageBusiness			BargeBusiness			Total
Revenue		26,347			11,367			18,840			56,554
Cost of sales		(13,778	)		(7,645	)		(16,604	)		(38,027	)
Gross profit		12,569			3,722			2,236			18,527
Administrative expenses		(784	)		(516	)		(2,068	)		(3,368	)
Other operating income		—			—			282			282
Other operating expenses		—			(566	)		(596	)		(1,162	)
Expected credit losses on financial assets		—			(164	)		(244	)		(408	)
Operating profit/(loss)		11,785			2,476			(390	)		13,871
Finance income		972			223			1,124			2,319
Finance costs		(4,009	)		(1,040	)		(4,397	)		(9,446	)
Foreign exchange differences, net		(50	)		(1	)		98			47
Profit/(Loss) before tax		8,698			1,658			(3,565	)		6,791
Income tax (expense)/benefit		—			(386	)		509			123
Profit/(loss) for the period		8,698			1,272			(3,056	)		6,914

F-12

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

For the Barge Business segment and for the Cabotage Business segment, the Company’s vessels operate on a regional basis and are not restricted to specific locations. Accordingly, it is not practicable to allocate the assets of these operations to specific locations. The total net book value of long-lived assets for vessels, including constructions in progress, amounted to $364,810 and $335,729, as of March 31, 2021 and December 31, 2020, respectively.

All the assets related to the Port Terminal Business segment are located in Uruguay and in Paraguay. The total net book value of tangible assets for the Port Terminal Business segment amounted to $204,021 and $203,282 as of March 31, 2021 and December 31, 2020, respectively.

In addition, the net book value of intangible assets other than goodwill allocated to the Barge Business segment and to the Cabotage Business segment, collectively, amounted to $11,978 and $12,421 as of March 31, 2021 and December 31, 2020, respectively, while the net book value of intangible assets allocated to the Port Terminal segment amounted to $39,067 and $39,317 as of March 31, 2021 and December 31, 2020, respectively.

Goodwill totaling to $22,142, $40,868 and $41,086 has been allocated to the three segments, the Port Terminal Business, the Barge Business and the Cabotage Business, respectively, for all periods presented.

NOTE 4: REVENUE, COST OF SALES AND ADMINISTRATIVE EXPENSES

4.1 Disaggregated revenue information

An analysis of the Company’s revenues from contracts with customers by stream of revenue is presented below:

	Three monthperiod endedMarch 31, 2021			Three monthperiod endedMarch 31, 2020
COA/Voyage revenues	$	17,585		$	11,450
Time chartering revenues non-lease component	$	4,516			8,079
Dry port terminal revenues		19,583			14,192
Storage fees (dry port) revenues		108			2,823
Dockage revenues		598			433
Sale of products revenues		3,180			7,848
Liquid port terminal revenues		1,232			996
Other dry port terminal revenue		71			55
Turnover tax-non lease component		(78	)		(112	)
Revenue from contracts with customers	$	46,795		$	45,764
Time chartering revenues lease component	$	6,351		$	10,947
Turnover tax-lease component		(110	)		(157	)
Total revenue	$	53,036		$	56,554

4.2 Contract balances

	March 31,2021		December 31,2020
Trade receivable from contract with customers		36,184		34,190
Contract assets		2,163		906
Contract liabilities		2,143		2,011

F-13

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Trade receivables from contracts with customers represent net amounts receivable from customers in respect of voyage charters, port terminals and in respect of time charters for the non-lease (service component) of the receivable. Trade receivable consisted of the following:

	March 31,2021			December 31,2020
Receivables from other related parties (Note 9)		—			282
Receivables from third party customers		39,213			36,792
		39,213			37,074
Allowance for expected credit losses		(3,029	)		(2,884	)
Total trade receivables		36,184			34,190

Movement in the allowance for expected credit losses of trade receivables is analyzed as follows:

Balance as at January 1, 2021	(2,884	)
Allowance for expected credit losses	(145	)
Utilized provision	—
Balance as at March 31, 2021	(3,029	)

Balance as at January 1, 2020	(2,490	)
Allowance for expected credit losses	(408	)
Utilized provision	198
Balance as at March 31, 2020	(2,700	)

Contract assets represent amounts from contracts with customers that reflect services transferred to customers for before payment or consideration is due. Specifically, contract assets represent the freight, demurrage, deviation and other amounts receivable from charterers for the completed voyage performance as at the period end. The balances of contract assets vary and depend on ongoing voyage charters at period end.

Contract liabilities represent the performance due to a customer for the remaining voyage as at the period end. This may happen in the case where the customer has made an advance payment before the completion of the voyage as of the period end date. The balances of contract liabilities vary and depend on advance payments received at period end.

4.3 Cost of Sales

Cost of sales for the three month period ended March 31, 2021 and 2020 were as follows:

	Three monthperiod endedMarch 31, 2021		Three monthperiod endedMarch 31, 2020
Time charter, voyage and port terminal expenses		11,337		10,872
Direct vessel expenses		12,705		11,201
Cost of products sold		3,041		7,757
Depreciation and amortization		8,288		8,197
Total cost of sales		35,371		38,027

F-14

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

4.4 Administrative expenses

General and administrative expenses for the three month period ended March 31, 2021 and 2020 were as follows:

	Three monthperiod endedMarch 31, 2021		Three monthperiod endedMarch 31, 2020
Payroll and related costs		1,375		1,313
Professional fees		1,028		832
Other expenses		679		875
Depreciation of RoU asset		158		164
Depreciation of tangible assets		128		184
Total		3,368		3,368

NOTE 5: TANGIBLE FIXED ASSETS AND ASSETS UNDER CONSTRUCTION

Tangible assets

Vessels, port terminals and other fixed assets, net consist of the following:

Tanker vessels, barges and pushboats	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2021		522,998		(216,983	)		306,015
Additions		566		(4,723	)		(4,157	)
Transfer from assets under construction		19,501		—			19,501
Balance March 31, 2021		543,065		(221,706	)		321,359
Deferred dry dock and special survey costs	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2021		55,481		(44,014	)		11,467
Additions		1,006		(908	)		98
Balance March 31, 2021		56,487		(44,922	)		11,565
Dry port terminals	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2021		225,554		(41,023	)		184,531
Additions		165		(1,863	)		(1,698	)
Balance March 31, 2021		225,719		(42,886	)		182,833
Oil storage plant and port facilities for liquid cargoes	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2021		29,190		(13,078	)		16,112
Additions		—		(71	)		(71	)
Transfer from assets under construction		1,843		—			1,843
Balance March 31, 2021		31,033		(13,149	)		17,884

F-15

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Other fixed assets	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2021		8,318		(5,632	)		2,686
Additions		124		(119	)		5
Balance March 31, 2021		8,442		(5,751	)		2,691
Total	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2021		841,541		(320,730	)		520,811
Additions		1,861		(7,684	)		(5,823	)
Transfer from assets under construction		21,344		—			21,344
Balance March 31, 2021		864,746		(328,414	)		536,332

Certain assets of the Company have been pledged as collateral for loan facilities. As of March 31, 2021 and December 31, 2020, the net book value of such assets was $133,425 and $101,145 , respectively.

Since 2018, Navios Logistics acquired approximately 6.6 hectares of undeveloped land located in the Port Murtinho region of Brazil, and on March 24, 2021, Navios Logistics acquired 2.3 additional hectares. Navios Logistics plans to develop this land for its port operations, for a total cost of $1,580.

Assets under construction

As of March 31, 2021, Navios Logistics completed the construction of six liquid barges. As of March 31, 2021, a total of $19,501 had been transferred to “Tangible assets” in the consolidated statement of financial position of which capitalized interest amounted to $1,062. As of December 31, 2020, the total amount included in “Assets under construction” was $16,696 for the construction of these barges. Capitalized interest included in “Assets under construction” for the construction of these barges amounted to $611 as of December 31, 2020.

During the first quarter of 2021, Navios Logistics completed the construction of two new tanks in its liquid port terminal. As of March 31, 2021, a total of $1,843 had been transferred to “Tangible assets” in the consolidated statement of financial position. As of December 31, 2020, Navios Logistics had paid $1,285 for the construction of two new tanks in its liquid port terminal.

As of March 31, 2021, Navios Logistics had paid $645 for capitalized expenses for the development of its port operations in Port Murtinho region, Brazil.

In the fourth quarter of 2020, Navios Logistics entered into a purchase agreement with an unrelated third party for the acquisition of three pushboats and 18 tank barges (the “2020 Fleet”), for a purchase price of $30,000. The acquisition was completed on March 22, 2021. As of March 31, 2021, the total amount included in “Assets under construction” was $31,886 for the acquisition of the 2020 Fleet.

As of March 31, 2021, Navios Logistics had paid $2,659 for the construction of a crane in its grain port terminal.

F-16

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 6: INTANGIBLES

Intangible assets other than goodwill

Intangible assets as of March 31, 2021 and December 31, 2020 consisted of the following:

March 31, 2021	AcquisitionCost		AccumulatedAmortization			Net BookValue
Port terminal operating rights		53,152		(14,085	)		39,067
Customer relationships		36,120		(24,142	)		11,978
Total intangible assets		89,272		(38,227	)		51,045
December 31, 2020	AcquisitionCost		AccumulatedAmortization			Net bookValue
Port terminal operating rights		53,152		(13,835	)		39,317
Customer relationships		36,120		(23,699	)		12,421
Total intangible assets		89,272		(37,534	)		51,738

Amortization expense for the three month period ended March 31, 2021 amounted to $693 ($693 for the three month period ended March 31, 2020).

The aggregate amortization of acquired intangibles will be as follows:

Description	WithinOneYear		YearTwo		YearThree		YearFour		YearFive		Thereafter		Total
Port terminal operating rights		995		995		995		995		995		34,092		39,067
Customer relationships		1,775		1,775		1,775		1,775		1,775		3,103		11,978
Total	$	2,770	$	2,770	$	2,770	$	2,770	$	2,770	$	37,195	$	51,045

Goodwill

Goodwill resulted from certain transactions involving Navios Logistics and its Parent. As of March 31, 2021 and December 31, 2020, goodwill amounted to $104,096.

F-17

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 7: INTEREST-BEARING LOANS AND BORROWINGS

Interest-bearing loans and borrowings consist of the following:

	March 31,2021			December 31,2020			Interest Rate	Maturity
Notes Payable		4,900			5,475		Six-month LIBOR	November 2, 2024 (1)
Seller’s credit for the construction of six liquid barges		2,326			1,901		Fixed rate of 8.5%	November 16, 2025 (2)
New BBVA Facility		19,000			14,000		Six-month LIBOR plus 3.25%	March 31, 2022
Term Bank loan		1,400			1,400		Three-month LIBOR plus 3.15%	May 18, 2022
Seller’s credit agreement for the acquisition of the 2020 Fleet		5,000			—		Fixed rate of 5.00%	March 22, 2024
Loan for Nazira		29			46		Fixed rate of 6.00%	August 10, 2021
Current portion of interest-bearing loans and borrowings		32,655			22,822
2025 Notes		500,000			500,000		Fixed rate of 10.75%	July 1, 2025
Notes Payable		11,592			12,367		Six-month LIBOR	November 2, 2024 (1)
Seller’s credit for the construction of six liquid barges		10,414			9,146		Fixed rate of 8.5%	November 16, 2025 (2)
New BBVA Facility		—			8,000		Six-month LIBOR plus 3.25%	March 31, 2022
Term Bank loan		7,350			7,700		Three-month LIBOR plus 3.15%	May 18, 2022
Seller’s credit agreement for the acquisition of the 2020 Fleet		10,000			—		Fixed rate of 5.00%	March 22, 2024
Non-current portion of interest-bearing loans and borrowings		539,356			537,213
Less: deferred finance costs		(18,607	)		(19,444	)
Total interest-bearing loans and borrowings, net		553,404			540,591

(1) Includes 32 different drawdown events and maturity dates are scheduled on the 16th and last semi-annual installments after the completion of each Drawdown Event.

(2) Includes six different drawdown events and maturity dates are scheduled on the 20th and last quarterly installments from the drawdown date of each individual barge based on the barge’s delivery date.

2025 Notes

On July 8, 2020, Navios Logistics and its wholly-owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Co-Issuers”) issued $500,000 in aggregate principal amount of senior secured notes due 2025 (“the 2025 Notes”), at a fixed rate of 10.75%. The net proceeds from the offering of the 2025 Notes were used to satisfy and discharge the indenture governing the 2022 Notes, to repay all amounts outstanding under the Term Loan B Facility and to pay certain fees and expenses related to the offering, with the balance to be used for general corporate purposes.

F-18

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

On or after August 1, 2022, the Co-Issuers may redeem some or all of the 2025 Notes at the redemption prices set forth in the indenture governing the 2025 Notes. In addition, before August 1, 2022, the Co-Issuers may redeem up to 35% of the aggregate principal amount of the 2025 Notes at a price equal to 110.750% of the principal amount of the 2025 Notes to be redeemed plus accrued and unpaid interest, if any, to the redemption date with an amount equal to the net cash proceeds of one or more equity offerings so long as at least 50% of the originally issued aggregate principal amount of the 2025 Notes remains outstanding. Prior to August 1, 2022, the Co-Issuers may also redeem all or a part of the 2025 Notes at a redemption price equal to the sum of: (a) 100% of the principal amount of the 2025 Notes to be redeemed; plus (b) the applicable “make-whole” premium described in the indenture governing the 2025 Notes, plus (c) accrued and unpaid interest, if any, on the 2025 Notes to be redeemed, to (but excluding) the applicable redemption date, subject to the right of holders of notes on the relevant record date to receive interest due on all the relevant interest payment dates. The Co-Issuers may also redeem all, but not less than all, of the 2025 Notes at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any, upon certain changes in law that would trigger the payment of withholding taxes. Furthermore, upon the occurrence of certain change of control events, the Co-Issuers may be required to offer to purchase 2025 Notes from holders at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any.

The 2025 Notes are senior secured obligations of the Co-Issuers and rank equal in right of payment to all of their existing and future senior indebtedness and senior in right of payment to all of their future subordinated indebtedness. The 2025 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the Company’s direct and indirect subsidiaries, other than the Co-Issuer and Grimaud Ventures S.A.. The 2025 Notes are secured by (i) first priority ship mortgages on four tanker vessels servicing the Company’s cabotage business (the (1) Elena H, (2) Makenita H, (3) Sara H and (4) He Man H) owned by certain subsidiary guarantors (such guarantors, the “Mortgaged Vessel Guarantors”) and related assignments of earnings and insurance together with a first priority lien on the capital stock of each Mortgaged Vessel Guarantor and (ii) an assignment by way of security of the Vale Port Contract (collectively, the “Collateral”). The 2025 Notes will be effectively senior to all existing and future obligations of the subsidiary guarantors that own Collateral to the extent of the value of the Collateral but effectively junior to any existing and future secured obligations of the Co-Issuers and the subsidiary guarantors that are secured by assets other than the Collateral to the extent of the value of any assets securing such other obligations.

As of March 31, 2021 and December 31, 2020, deferred finance costs associated with the 2025 Notes amounted to $18,583 and $19,414, respectively. Finance costs associated with the 2025 Notes amounted to $13,288 and nil for the three month periods ended March 31, 2021 and 2020, respectively.

2022 Notes

On April 22, 2014, Navios Logistics and its wholly-owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Co-Issuers”) issued $375,000 in aggregate principal amount of Senior Notes due May 1, 2022 (the “2022 Notes”), at a fixed rate of 7.25%. The 2022 Notes were redeemed in full on July 16, 2020 at 100% of their face amount, plus accrued and unpaid interest to the redemption date with the proceeds of the Co-Issuers’ 2025 Notes.

Finance costs associated with the 2022 Notes amounted to nil and $6,797 for the three month periods ended March 31, 2021 and 2020, respectively.

F-19

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Term Loan B Facility

On November 3, 2017, Navios Logistics and Logistics Finance, as co-borrowers, completed the issuance of a $100,000 Term Loan B Facility (the “Term Loan B Facility”). The Term Loan B Facility bore an interest rate of LIBOR plus 475 basis points and had a four-year term with 1.0% amortization per annum. The Term Loan B Facility was repaid in full on July 8, 2020 at par plus accrued and unpaid interest to the repayment date with the proceeds of the Co-Issuers’ 2025 Notes.

Finance costs associated with the Term Loan B Facility amounted to nil and $1,595 for the three month periods ended March 31, 2021 and 2020, respectively.

Notes Payable

In connection with the purchase of mechanical equipment for the expansion of its dry port terminal, the Company entered into an unsecured export financing line of credit for a total amount of $41,964, including all related fixed finance costs of $5,949, available in multiple drawings upon the completion of certain milestones (“Drawdown Events”). The Company incurs the obligation for the respective amount drawn by signing promissory notes (“Notes Payable”). Each drawdown is repayable in 16 consecutive semi-annual installments, starting six months after the completion of each Drawdown Event. Together with each Note Payable, the Company shall pay interest equal to six-month LIBOR. The unsecured export financing line is fully and unconditionally guaranteed by Ponte Rio S.A. As of March 31, 2021, the Company had drawn the total available amount and the outstanding balance of Notes Payable was $16,492.

Finance costs associated with the Notes Payable amounted to $168 and $316 for the three month periods ended March 31, 2021 and 2020, respectively.

Other Indebtedness

On December 15, 2016, the Company entered into a $25,000 facility with Banco Bilbao Vizcaya Argentaria Uruguay S.A. (“BBVA”), for general corporate purposes. On July 8, 2020, this loan was repaid in full in connection with drawing the New BBVA Facility.

On February 28, 2020, the Company entered into a $25,000 loan facility (the “New BBVA Facility”) with BBVA, which was drawn on July 8, 2020. The New BBVA Facility was used to repay the existing loan facility with BBVA, and for general corporate purposes. The New BBVA Facility bears interest at a rate of LIBOR (180 days) plus 325 basis points, is repayable in quarterly installments with final maturity on March 31, 2022 and is secured by assignments of certain receivables. As at March 31, 2021, the outstanding balance was $19,000.

On May 18, 2017, the Company entered into a $14,000 term loan facility (the “Term Bank Loan”) in order to finance the acquisition of two product tankers. The Term Bank Loan bears interest at a rate of LIBOR (90 days) plus 315 basis points and is repayable in twenty quarterly installments with a final balloon payment of $7,000 on the last repayment date. As of March 31, 2021, the outstanding amount of the Term Bank Loan was $8,750. As of March 31, 2021 and December 31, 2020, unamortized deferred financing costs associated with the Term Bank Loan amounted to $24 and $30, respectively.

In December 2020, the Company entered into a $13,475 seller’s credit agreement for the construction of six liquid barges to be made available by way of credit in six equal tranches. Each drawdown is repayable in 20 quarterly installments starting from the delivery of each barge. The seller’s credit for the construction of the six liquid barges bears interest at a fixed rate of 8.5%. As of March 31, 2021, the Company had drawn the total available amount and the outstanding balance was $12,740. Finance cost associated with the seller’s credit agreement for the construction of six liquid barges amounted to $309 and nil for the three month period ended March 31, 2021 and 2020, respectively.

F-20

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

In the fourth quarter of 2020, Navios Logistics entered into a purchase agreement with an unrelated third party for the acquisition of the 2020 Fleet. The acquisition was completed on March 22, 2021, and consequently, the Company entered into a $15,000 seller’s credit agreement for the acquisition of the 2020 Fleet. The seller’s credit agreement bears interest at a fixed rate of 5.0% per annum and is payable in three equal annual installments of $5,000. Finance cost associated with the seller’s credit agreement for the acquisition of the 2020 Fleet amounted to $18 and nil for the three month period ended March 31, 2021 and 2020, respectively.

In connection with the acquisition of Hidronave S.A. on October 29, 2009, the Company assumed a $817 loan facility that was entered into by Hidronave S.A. in 2001, in order to finance the construction of the pushboat Nazira. As of March 31, 2021, the outstanding balance of the loan facility of Hidronave S.A. was $29. The loan facility bears interest at a fixed rate of 600 basis points. The loan is repayable in monthly installments of $6 each and the final repayment must occur prior to August 10, 2021.

In connection with the loan and other long term liabilities, the Company is subject to certain covenants, commitments, limitations and restrictions.

The Company was in compliance with all the covenants as of March 31, 2021.

The annualized weighted average interest rates of the Company’s total borrowings were 10.05% and 6.87% for the three month periods ended March 31, 2021 and 2020, respectively.

The maturity table below reflects future payments of the long-term interest-bearing loans and borrowings and interest outstanding as of March 31, 2021, for the next five years and thereafter.

Year	Amount inthousands ofU.S. dollars
March 31, 2022	$	89,485
March 31, 2023		75,300
March 31, 2024		67,514
March 31, 2025		58,614
March 31, 2026		515,642
Total	$	806,555

F-21

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 8: LEASES

Company as a lessee

The Company has lease contracts for land and offices used in its operations. Leases of land generally have an average lease term of 45 years with extension option attached, while office lease agreements generally have lease terms between 0.2 and 5.6 years.

The Company also has certain leases of offices with lease terms of 12 months or less and leases of photo copy machines with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period:

	Land			Office buildings			Total rightof use assets
Balance as at January 1, 2021		6,780			495			7,275
Additions		—			336			336
Depreciation expense		(39	)		(158	)		(197	)
Balance as at March 31, 2021		6,741			673			7,414

An analysis of the lease liabilities is as follows:

	2021
At January 1,		7,856
Additions		336
Accretion of interest		161
Payments		(337	)
At March 31,		8,016
Current		898
Non-current		7,118

The maturity table of the undiscounted cash flows of the lease liabilities is presented below:

Less than 1 year		Between 1 and 5 years		Over 5 years		Total
898		2,773		23,473		27,144

The table below presents the components of the Company’s lease expense for the three month periods ended March 31, 2021 and 2020:

	Three monthperiod endedMarch 31, 2021		Three monthperiod endedMarch 31, 2020
Depreciation expense of right-of-use assets		197		202
Interest expense on lease liabilities		161		156
Expense relating to short-term leases		1,538		1,818
Total		1,896		2,176

F-22

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Company as a lessor

The Company through its subsidiaries entered into time charter agreements with aggregate hire receivables (contracted revenues), comprising lease revenue and service revenue (see Note 4.1). There are no significant variable lease payments in relation to these agreements.

In February 2017, two self-propelled barges of the Company’s fleet, Formosa and San Lorenzo, were sold for a total amount of $1,109, to be paid in cash. The sale price will be received in installments in the form of lease payments through 2023. The barges may be transferred at the lessee’s option, at no cost, at the end of the lease period.

Future minimum collections of net investment in the lease as of March 31, 2021, are as follows:

Collections Due by Period	March 31,2021
March 31, 2022	$	167
March 31, 2023		38
March 31, 2024		132
Total future minimum net investment in lease collections		337
Less: amount representing interest		(32	)
Present value of future minimum net investment in lease collections (1)	$	305

(1) Reflected in the balance sheet as net investment in the lease current and non-current.

NOTE 9: RELATED PARTY DISCLOSURES

As of March 31, 2021 and December 31, 2020, the amounts due from affiliate companies were as follows:

	March 31,2021			December 31,2020
Navios Holdings (Parent)	$	76,843		$	75,077
Navios Shipmanagement Inc. (Other related party)		(9	)		282
Total	$	76,834		$	75,359

Amounts due from affiliate companies do not accrue interest and do not have a specific due date for their settlement apart from the Navios Holdings Loan Agreement.

The Navios Holdings Loan Agreement: On April 25, 2019, Navios Logistics agreed to lend Navios Holdings up to $50,000 on a secured basis (the “Navios Holdings Loan Agreement”) to be used for general corporate purposes, including the repurchase of Navios Holdings’ 7.375% First Priority Ship Mortgage Notes due 2022 (the “Navios Holdings 2022 Notes”). The secured credit facility is secured by Navios Holdings 2022 Notes purchased with secured credit facility funds. The secured credit facility included an arrangement fee of $500 and bears fixed interest of 12.75% for the first year and 14.75% for the second year. The secured credit facility also includes negative covenants substantially similar to the 2022 Notes and customary events of default. On December 2, 2019, Navios Logistics agreed to increase the secured credit facility by $20,000. Following this amendment, as a result of the redemption of the 2022 Notes and Term Loan B Facility in July 2020 and the issuance of 2025 Notes, (a) the interest rate on the secured credit facility decreased to 10.0%, and (b) the maturity of the secured credit facility was extended to December 2024, and is repayable in four equal annual installments. Effective as of May 2021, and upon the release of certain collateral, the facility bears interest of 13.0% per annum. As of March 31, 2021, the full amount was drawn under the secured credit facility. The arrangement fee is amortized in income following the effective interest rate method over the life of the credit facility, resulting in $151 deferred income as of March 31, 2021. For the three month period ended March 31, 2021, interest income related to Navios Holdings Loan Agreement amounted to $1,750. As of March 31, 2021, an amount of $6,994 ($5,244 as of December 31, 2020) was included under “Financial assets at amortized cost (related party)” in statement of financial position related to accrued interest to be collected from Navios Holdings.

On June 24, 2020, we entered into a deed of assignment and assumption with our wholly-owned subsidiary, Grimaud and Anemos Maritime Holdings Inc. in respect of the Navios Holdings Loan, in which we assigned its legal and beneficial right, title and interest in the Navios Holdings Loan to Grimaud. On June 25, 2020, Grimaud agreed to amend the Navios Holdings Loan Agreement to amend the interest payment date in respect of the Navios Holdings Loan and to allow a portion of the total interest payable in respect of the Navios Holdings Loan to be effected in common shares of Navios Holdings. On July 10, 2020, Navios Holdings issued 2,414,263 shares of common stock to Grimaud and paid Grimaud $6,381 in satisfaction of the interest payable in respect of the Navios Holdings Loan.

F-23

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

General and administrative expenses: On August 29, 2019 Navios Logistics entered into an assignment agreement with Navios Corporation (“NC”) and Navios Shipmanagement Inc. (“NSM”), whereby the administrative services agreement originally entered into between Navios Logistics and Navios Holdings on April 12, 2011, first assigned to NC on May 28, 2014 and subsequently amended on April 6, 2016 (extending the duration of the agreement until December 2021), was assigned from NC to NSM. Thereafter NSM will continue to provide certain administrative management services to Navios Logistics. NSM will be reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. Total general and administrative fees charged for the three month period ended March 31, 2021 amounted to $286 ($286 for the three month period ended March 31, 2020).

Lodging and travel services: Navios Logistics obtains lodging and travel services from Empresa Hotelera Argentina S.A./(NH Lancaster), Divijet S.A., Trace Capital and Pit Jet S.A., all owned by members of the Lopez family, including Claudio Pablo Lopez, Navios Logistics’ Chief Executive Officer and Vice Chairman and Carlos Augusto Lopez, Navios Logistics’ Chief Commercial Officer—Shipping Division, each of whom has no controlling interest in those companies. Total charges were nil for the three month period ended March 31, 2021, ($8 for the three month period ended March 31, 2020), and amounts payable amounted to less than $1 as of March 31, 2021 and less than $1 as of December 31, 2020.

Employment Agreements - Compensation of key management personnel

The Company has executed employment agreements with three key management employees who are noncontrolling shareholders of the Company. These agreements stipulate, among other things, severance and benefit arrangements in the event of termination. In addition, the agreements include confidentiality provisions and covenants not to compete. The employment agreements initially expired in December 31, 2009, but are being renewed automatically for successive one-year periods until either party gives 90 days written notice of its intention to terminate the agreement. Generally, the agreements call for a base salary ranging from $280 to $340 per year, annual bonuses and other incentives, provided certain performance targets are achieved. Under the agreements, the Company accrued compensation of its key management employees totaling $225 and $225 for the three month period ended March 31, 2021 and 2020, respectively.

Pursuant to the assignment agreement with NC and NSM, the latter provides certain administrative management services to Navios Logistics including the compensation of its directors and members of our senior management who are not employees of the Company. This compensation is included in the general and administrative fees charged which amounted to $286 for both three month periods ended March 31, 2021 and 2020.

NOTE 10: FAIR VALUE MEASUREMENT

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments.

Net Investment in the Lease: The carrying amount of the net investment in the Lease approximates its fair value.

Intercompany receivable loan from parent (related party), net: The carrying amount of the intercompany receivable loan from parent (related party) approximates its fair value, excluding the effect of any deferred finance income.

Notes Payable: The Notes Payable are floating rate obligations and their carrying amounts approximate their fair value as indicated in the table below.

F-24

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Interest-bearing loans and borrowings: The book value has been adjusted to reflect the net presentation of deferred financing costs. The outstanding balance of the floating rate loans continues to approximate their fair value, excluding the effect of any deferred finance costs. The 2025 Notes, the loan for the acquisition of Hidronave S.A., the seller’s credit for the construction of six liquid barges and the 2020 Fleet are fixed rate borrowings and their fair value was determined based on quoted market prices.

The estimated fair values of the Company’s financial instruments are as follows:

	March 31, 2021						December 31, 2020
	Book Value			Fair Value			Book Value			Fair Value
Cash and cash equivalents	$	40,305		$	40,305		$	74,870		$	74,870
Net investment in the lease	$	305		$	305		$	300		$	300
Intercompany receivable loan from parent (related party)	$	69,849		$	69,849		$	69,833		$	69,833
2025 Notes	$	(481,417	)	$	(557,980	)	$	(480,586	)	$	(542,380	)
Notes payable, including current portion	$	(16,492	)	$	(16,492	)	$	(17,842	)	$	(17,842	)
Other long-term indebtness, including current portion	$	(55,495	)	$	(55,495	)	$	(42,163	)	$	(42,163	)

Fair Value Measurements

The estimated fair value of our financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:

Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable.

	Fair Value Measurements at March 31, 2021
	Total			Level I			Level II			Level III
Cash and cash equivalents	$	40,305		$	40,305		$	—		$	—
Net investment in the lease	$	305		$	305		$	—		$	—
Intercompany receivable loan from parent (related party), net	$	69,849		$	—		$	69,849		$	—
2025 Notes	$	(557,980	)	$	(557,980	)	$	—		$	—
Notes payable, including current portion(1)	$	(16,492	)	$	—		$	(16,492	)	$	—
Other long-term indebtness, including current portion (1)	$	(55,495	)	$	—		$	(55,495	)	$	—

	Fair Value Measurements at December 31, 2020
	Total			Level I			Level II			Level III
Cash and cash equivalents	$	74,870		$	74,870		$	—		$	—
Net investment in the lease	$	300		$	300		$	—		$	—
Intercompany receivable loan from parent (related party), net	$	69,833		$	—		$	69,833		$	—
2025 Notes	$	(542,380	)	$	(542,380	)	$	—		$	—
Notes payable, including current portion(1)	$	(17,842	)	$	—		$	(17,842	)	$	—
Other long-term indebtness, including current portion(1)	$	(42,163	)	$	—		$	(42,163	)	$	—

1) The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rates and remaining maturities as well as taking into account our creditworthiness.

F-25

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Fair value of collaterals under intercompany receivable loan from parent (related party):

The fair value of the collaterals under intercompany receivable loan from parent (related party) was determined based on quoted market prices for Navios Holding 2020 notes (Level I under fair value hierarchy) and third parties valuation reports (Level II under fair value hierarchy) resulting in a total amount of $134,576 as of March 31, 2021.

There were no changes in valuation techniques during the reporting periods presented, neither there were transfers between levels.

NOTE 11: EARNINGS PER SHARE (EPS)

Basic and diluted net earnings per share are computed using the weighted-average number of common shares outstanding. The computations of basic and diluted earnings per share for the periods ended March 31, 2021 and 2020 respectively, are as follows:

	Three monthperiod endedMarch 31, 2021		Three monthperiod endedMarch 31, 2020
Profit attributable to Navios Logistics’ stockholders		2,507		6,914
Weighted average number of shares, basic and diluted		20,000		20,000
Net earnings per share from continuing operations: Basic and diluted		0.13		0.35

At March 31, 2021 and 2020, the Company had no dilutive or potentially dilutive securities, accordingly there is no difference between basic and diluted net earnings per share.

NOTE 12: COMMITMENTS AND CONTINGENCIES

Legal

Navios Logistics has issued a guarantee and indemnity letter that guarantees the performance by Petrolera San Antonio S.A. (a consolidated subsidiary) of all its obligations to Vitol S.A. up to $12,000. This guarantee expires on March 1, 2022.

On July 22, 2016, the Company guaranteed the compliance of certain obligations related to Edolmix S.A. and Energías Renovables del Sur S.A. (entities wholly owned by the Company) under their respective direct user agreements with the Free Zone of Nueva Palmira, for the amounts of $847 and $519, respectively.

In September 2020, the Company agreed to a settlement regarding a storage and transshipment contract in the grain port terminal for a total amount of $4,140, which will be collected in three equal installments of $1,380 on June 1, 2021, 2022 and 2023.

The Company is involved in a number of legal proceedings and has various unresolved claims pending arising in the ordinary course of business. Based on currently available information and the opinion of legal counsel, management believes that the final outcome will not have a significant effect on the Company’s operating results or financial position and that no additional provisions over and above provisions already reflected in the consolidated financial statements are required.

F-26

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this ~~report~~Report to be signed on its behalf by the undersigned, thereunto duly authorized.

EXHIBIT INDEX


Exhibit No.		Exhibit

99.1		Supplemental Grimaud Loan Amendment, dated as of June 30, 2021, between Grimaud Ventures S.A. and Navios Maritime Holdings Inc.

Date: June 14, 2021

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NAVIOS SOUTH AMERICAN LOGISTICS INC.

/s/ Claudio Pablo Lopez

~~/s/ Claudio Pablo Lopez~~

Claudio Pablo Lopez

~~Claudio Pablo Lopez~~

Chief Executive Officer

~~Chief Executive Officer~~

Date: July 1, 2021

Filing Compare · Navios South American Logistics Inc.