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 March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

U.S. Submits Formal Plan for Paris Climate Talks

The United States on Tuesday formally submitted its climate change strategy to the United Nations, outlining domestic measures it is taking to achieve up to a 28

Direct Le Havre to Charleston LCL Import Service

CaroTrans has announced the addition of an expedited Le Havre, France to Charleston LCL import service.    This is the only direct, weekly Le Havre to Charleston LCL service available in the market.

DryShips to Sell its Suezmax Tanker Fleet

DryShips Inc. (NASDAQ: DRYS), has announced  that it has entered into firm sales agreements with entities controlled by the Company's Chairman and Chief Executive Officer,

Vessels

DryShips to Sell its Suezmax Tanker Fleet

DryShips Inc. (NASDAQ: DRYS), has announced  that it has entered into firm sales agreements with entities controlled by the Company's Chairman and Chief Executive Officer,

Shipbuilding: Mitsui Delivers Bulk Carrier

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 56,000 dwt type bulk carrier M.V. Desert Osprey (MES Hull No. 1862) at its Chiba Works

ST Marine Celebrates Naming of Vessels

Singapore Technologies Marine Ltd (ST Marine), the marine arm of Singapore Technologies Engineering Ltd (ST Engineering), held the Naming Ceremony today for the second Patrol Vessel (PV),

Logistics

Direct Le Havre to Charleston LCL Import Service

CaroTrans has announced the addition of an expedited Le Havre, France to Charleston LCL import service.    This is the only direct, weekly Le Havre to Charleston LCL service available in the market.

DryShips to Sell its Suezmax Tanker Fleet

DryShips Inc. (NASDAQ: DRYS), has announced  that it has entered into firm sales agreements with entities controlled by the Company's Chairman and Chief Executive Officer,

Shipbuilding: Mitsui Delivers Bulk Carrier

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 56,000 dwt type bulk carrier M.V. Desert Osprey (MES Hull No. 1862) at its Chiba Works

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.1973 sec (5 req/sec)