Vale may build iron ore distribution centre at Qingdao Port

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Nov 2009

It is reported that Brazilian ore miner Vale prepares to set up its own iron ore distribution centre in China. Shortly before, it has signed a cooperation pact with Dalian port to distribute 5 million tonnes to 10 million tonnes of iron ores annually until the end of 2020. As per report, the move is to bring down the expensive freight cost due to its geographic disadvantage compared with its main rivals in Australia, BHP and Rio Tinto. The distribution centre would enable us to overcome the long distance between Brazil and Asia and beef up our competitiveness.
The company global iron ore director said in a conference last Tuesday, Vale plans to build sixteen 400,000 tonnage iron ore carriers before 2012. The first one of them will take water in 2010 which will lower transportation costs by 30% compared with two 200,000 tonnage.
Each ship will be able to carry about 1.6 million tonnes of material a year based on the premise that each ship can make four trips from Brazil to China a year. The new ships will be able to carry a combined 25.6 million tons of iron ore a year based on the above figures equivalent to about 8.5% of the company annual iron ore production capacity.
Qingdao port is rumored to be the most possible site for Vale distribution centre as it is the only port that is building terminal for 400,000-ton iron ore carriers
Mr Tian Guangwen vice president of Qingdao Port Group Co Ltd said the company plans to pour CNY 3 billion into the construction of terminals in Dongjiakou Port Area
The first to be built 400,000 tonnage iron ore terminal is due to be completed by the 2010 end at the earliest. The terminal is built to berth 400,000 tonnage iron ore carriers of Vale.
Qingdao Port Group will construct four 400,000-tonnage, two 200,000 tonnage and five 100,000 tonnage terminals in Dongjiakou Port Area, respectively designed to load and unload iron ores, crude oil, coals and bulk cargos.

Source: MySteel.net