Shippers voice threat from Vale's VLOCs
By Richard Fu |
May 21, 2012, Monday
|
Print Edition
Print Edition
CHINA'S largest private shipbuilder, Rongsheng Heavy Industries Group Holdings, delivered its third very large ore carrier yesterday to Brazilian iron ore exporter Vale SA, but Chinese shipowners have criticized that these VLOCs may threaten their interests.
The Vale Dalian, a 380,000 deadweight-ton ship, is part of 12 VLOCs ordered by Vale from Rongsheng under a US$1.6 billion contract signed in 2008 as the Brazilian mining giant seeks to cut transport costs of exporting iron ore to China and other Asian markets. Vale hopes to own and charter 35 VLOCs by the end of 2013.
But the China Shipowners' Association has said the VLOCs may hurt their interests and also pose a safety threat because most Chinese ports are unable to cope with their massive size.
China's transport ministry earlier this year banned dry bulk ships of over 350,000 DWT. But Vale said in March it may get permission "within months" for its VLOCs to unload in the country. Gurinder Singh, Vale's head of shipping and distribution, is expected to discuss the issue at a two-day industry conference starting tomorrow in Shanghai.
Rongsheng said it plans to deliver 8-10 VLOCs to Vale this year.
The Vale Dalian, a 380,000 deadweight-ton ship, is part of 12 VLOCs ordered by Vale from Rongsheng under a US$1.6 billion contract signed in 2008 as the Brazilian mining giant seeks to cut transport costs of exporting iron ore to China and other Asian markets. Vale hopes to own and charter 35 VLOCs by the end of 2013.
But the China Shipowners' Association has said the VLOCs may hurt their interests and also pose a safety threat because most Chinese ports are unable to cope with their massive size.
China's transport ministry earlier this year banned dry bulk ships of over 350,000 DWT. But Vale said in March it may get permission "within months" for its VLOCs to unload in the country. Gurinder Singh, Vale's head of shipping and distribution, is expected to discuss the issue at a two-day industry conference starting tomorrow in Shanghai.
Rongsheng said it plans to deliver 8-10 VLOCs to Vale this year.
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