China Rules: Mammoth Vale Ore Ship Sits Idle

Wednesday, November 23, 2011
(Image courtesy www.Vale.com
According to a report on Bloomberg, Brazil’s VALE may have made a very bad investment in one of the most heralded shipbuilding ventures of a generation.
About three years ago the Brazilian mining giant announced its plan to build an impressive new fleet of up to 19 of the biggest bulk carriers in the world, signin a contact with Rongsheng Shipbuilding and Heavy Industries of China to build 12 carries valued at $ 1.6b to transport iron ore to China.
The very large ore carriers (VLOC) each are designed to carry 400,000 metric tons, and the shipbuilding order was touted as part of the firm’s plan to maximize efficiency if its operations in the iron ore market, a strategy including using longer freight trains with 330 wagons and more efficient locomotives.
The development of this project represented was touted by Vale as a huge technological challenge in terms of innovation. The vessels allow high speed loading and unloading, are suitable for most modern ports in the world and have an efficient drainage system, capable of pumping out standing water with six bilges in each hold. They also reduce carbon emissions by 35% per ton of ore transported - a "green" project that received in May the "Nor-Shipping Clean Ship Award", an international industry acknowledgment for this achievement.
But while the first ship has been delivered, it has yet to make a commercial voyage, as Bloomberg reports that China is refusing to accept the ships into the country, as pressure from China’s shipowners – citing existing pressure on bulk carrier rates and a slew of new tonnage set to enter the market; and China’s steelmakers who reportedly contend that the ships will conspire to give Vale more control over pricing and delivery.
According to the Bloomberg report, approximately 45% of Vales shipments end in China.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Insights: Kunkel Weighs in on Propulsion Technology

LNG? Methanol as fuel? Hybrid systems? Tier 4? Reducing noise? Cutting emissions without crushing fuel economy? Marine News readers have questions and Bob Kunkel has answers.

A Sea Change in Waterjet Technology

Longtime waterjet propulsion equipment provider NAMJet introduces key advancements for the workboat sector. Back in 2011, when boat builder Birdon went looking

ATB Design Comes of Age

The emerging trend of marrying the design of an articulated tug and barge (ATB) to a particular propulsion system to maximize efficiencies of that system has, of late,

Shipbuilding

Damen PSV for Wilson Sons Ultratug Offshore

Wilson Sons Ultratug Offshore, a joint venture between Wilson Sons and the Chilean maritime services provider Ultramar, has taken delivery of a Damen PSV 5000.

VARD Bags Three-vessel Contract

Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of offshore and specialized vessels secured a contract for the design and construction

ATB Design Comes of Age

The emerging trend of marrying the design of an articulated tug and barge (ATB) to a particular propulsion system to maximize efficiencies of that system has, of late,

Bulk Carrier Trends

Safe Bulkers Reports Q2 Loss, Expands Fleet

The Athens, Greece-based Safe Bulkers Inc. (SB) has reported a loss of $9 million in its second quarter.  It had a loss of 15 cents per share.   Net revenue for Q2 of 2016 decreased by 18% to $26.

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Scorpio Bulkers books Net Loss

USA-Monaco based bulk carrier Scorpio Bulkers has reported a loss of $24.7 million in its second quarter of 2016, pushing the carrier's deficit up to $ 83 million.

 
 
Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0820 sec (12 req/sec)