First Valemax Ship to Discharge in Malaysia

MarineLink.com
Tuesday, February 25, 2014
Photo: Vale

Reuters - Brazil's Vale SA will launch in March the first phase of its iron ore storage and distribution center in Malaysia that will improve its access to China, its biggest customer, a company official said on Tuesday.

The world's top iron ore miner, whose huge Valemax vessels are banned from Chinese ports, built the Malaysian terminal to better compete with Australian rivals Rio Tinto and BHP Billiton.

The 400,000-deadweight metric ton (dwt) vessels, the world's biggest bulk carriers, were meant to cut Vale's shipping costs to China but Beijing banned them in January 2012 to shield its shippers. The Malaysian hub, along with a floating terminal in the Philippines set up in February 2012, may help Vale maximize the use of the ships.

João Mendes de Faria, President of Vale China, said at a Metal Bulletin conference that the Malaysian centre will receive its first Valemax iron ore carrier next month, bringing larger quantities of Vale's ore in closer proximity to China's ports.

Vale is planning to increase its total iron ore production by 50 percent to more than 450 million metric tons a year by 2018, and raising its market share in China is a vital part of its strategy.

But the firm's efforts to persuade Chinese authorities to allow its Valemaxes to land directly at Chinese ports suffered a setback earlier this month when China's transportation ministry announced tough new restrictions on the size of ships allowed to dock at domestic terminals.

The transport ministry's new port safety rules set a maximum capacity of 250,000 dwt for ships berthing in China.

Mendes de Faria said China's refusal to admit the company's huge carriers had reduced the "efficiency" of delivering iron ore to the Chinese market, but said the establishment of the Malaysia centre would bring improvement to Chinese customers.

"With Malaysia and our floating stations, our logistic strategy over the short and medium term has been settled," he said.

China barred the Valemaxes from its ports about a month after the first of the giant vessels docked at Dalian port in December 2011. But a Valemax managed to dock at China's Lianyungang port in April last year.

(Reporting by David Stanway; Additional reporting by Manolo Serapio Jr; Editing by Muralikumar Anantharaman)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

LUSCHI Begins Dredging at ArcelorMittal’s Canal

LUSCHI announced today it will mobilize its vessel Giovanella to Espírito Santo to assist in the dredging and final disposal of accumulated sediments in the seawater storage canal of ArcelorMittal,

Grounded Freighter Refloated in Lake St. Clair

The Federal Rideau, a 656-foot freighter that had been hard aground in the downbound shipping channel of Lake St. Clair since early Sunday morning, was refloated

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

News

Messer's CEO Norville Announces Retirement

Bill Heller to assume the position as Messer Cuttings Systems’ President and CEO Gary Norville started at Messer Cuttings Systems Inc. in September 1980 selling and installing cutting machines.

Charter Boat Crew Rescued in Gulf of Mexico

U.S. Coast Guard search and rescue crews worked throughout the night to find a missing charter boat with four people aboard as far as 70 miles off Galveston. A

Iraq's Kurds Have Right to Sell Oil While Squeezed by Baghdad

Iraq's Kurdish region has the right to keep selling oil as long as the Baghdad government keeps cutting its budget, the head of the Kurdish parliament's energy committee said on Tuesday,

Vessels

London Shipping Professionals Weigh in for SPNL Report

The Shipping Professional Network London (SPNL) has  released their full Future London report, an initiative that gathered the views and opinions of London’s young

U.S. Marshalls Ordered to Seize Kurdish Oil Cargo off Texas

Acting on a request from the central government in Iraq, a U.S. judge has signed an order telling the U.S. Marshals Service to seize a cargo of oil from Iraqi Kurdistan

Aker Philadelphia Shipyard ASA: Purchase of own shares

Aker Philadelphia Shipyard AKPS), a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market, has on July 25, 2014 purchased 1,

Logistics

Iraq's Kurds Have Right to Sell Oil While Squeezed by Baghdad

Iraq's Kurdish region has the right to keep selling oil as long as the Baghdad government keeps cutting its budget, the head of the Kurdish parliament's energy committee said on Tuesday,

Diana Containerships Q2 & 1H 2014 Financial Results

Greece-based Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has reported net income of $0.6 million for the second quarter of 2014,

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1781 sec (6 req/sec)