Vale giant iron ore carrier will go to China - CEO
2011-07-25 09:32:54 [Print]
Vale SA said that the first of its new vessels will go to China after being diverted to Italy on its maiden voyage.
Mr Murilo Ferreira CEO of Vale said that the 362 meter Vale Brasil, three times the length of a football field, will undoubtedly go to China whenever the miner needs to send iron ore to its biggest consumer. The ship was diverted from its original destination of Dalian because of draft restrictions at the Chinese port and a request from a European customer that needed the steel making ingredient.
Mr Ferreira said that "For commercial reasons our European customer needed the material a lot and we can't leave a customer without service. The ship left Brazil earlier than expected and draft services at the Chinese port weren't ready."
Vale is investing more than USD 2.3 billion to build 19 of the carriers, and will control another 16 under long term contracts. The vessels are scheduled to join the fleet by the end of 2013 as part of a strategy to stabilize freight costs and iron ore prices.
Mr Ferreira said that Vale China, the second of the so called Valemax vessels, will start operating within two months. The ship, built by China Rongsheng Heavy Industries Group Holdings Limited, will have a Chinese port as final destination.
Mr Ferreira said that the miner may also revive plans to build an iron ore distribution center in China. He added that "In the future we will analyze it again and reconsider this issue."
Vale is investing USD 1.37 billion to set up a maritime terminal in Malaysia with capacity to dock its Valemax vessels and handle as much as 30 million tonnes of iron ore a year starting in the first half of 2014. Vale started production from a USD 1.36 billion iron ore pellets plant and distribution center in Oman this year to supply clients in the Middle East, North Africa and India.
The company wants to increase sales in Asia as it competes for clients in China, Japan and other countries in the region with BHP Billiton Limited and Rio Tinto Group, which ship most of their ore from ports in Australia. Brazil, where Vale produces the bulk of its supplies, is three times further from Asian markets than Australia.
Mr Murilo Ferreira CEO of Vale said that the 362 meter Vale Brasil, three times the length of a football field, will undoubtedly go to China whenever the miner needs to send iron ore to its biggest consumer. The ship was diverted from its original destination of Dalian because of draft restrictions at the Chinese port and a request from a European customer that needed the steel making ingredient.
Mr Ferreira said that "For commercial reasons our European customer needed the material a lot and we can't leave a customer without service. The ship left Brazil earlier than expected and draft services at the Chinese port weren't ready."
Vale is investing more than USD 2.3 billion to build 19 of the carriers, and will control another 16 under long term contracts. The vessels are scheduled to join the fleet by the end of 2013 as part of a strategy to stabilize freight costs and iron ore prices.
Mr Ferreira said that Vale China, the second of the so called Valemax vessels, will start operating within two months. The ship, built by China Rongsheng Heavy Industries Group Holdings Limited, will have a Chinese port as final destination.
Mr Ferreira said that the miner may also revive plans to build an iron ore distribution center in China. He added that "In the future we will analyze it again and reconsider this issue."
Vale is investing USD 1.37 billion to set up a maritime terminal in Malaysia with capacity to dock its Valemax vessels and handle as much as 30 million tonnes of iron ore a year starting in the first half of 2014. Vale started production from a USD 1.36 billion iron ore pellets plant and distribution center in Oman this year to supply clients in the Middle East, North Africa and India.
The company wants to increase sales in Asia as it competes for clients in China, Japan and other countries in the region with BHP Billiton Limited and Rio Tinto Group, which ship most of their ore from ports in Australia. Brazil, where Vale produces the bulk of its supplies, is three times further from Asian markets than Australia.
