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

Technology

Shipyards Rising Competitive Stirrings

A mini order boom fueled by gas, “green-tech”, tankers and new rules is underway in shipbuilding. It won’t fill all yards, but changes like the July 2015 cap on

IMEI Certification - Unique Achievement

For Institute of Marine Engineers of India having achieved standardisation and maintainenace of quality processes simultaneously not just at their Head Office

DNV GL Wins Frame Agreement with CLP Hong Kong

DNV GL, the technical advisor to the oil and gas industry, has been awarded a framework agreement by CLP Hong Kong to deliver risk management advisory services for its Asia Pacific operations.

Shipbuilding

Great Lakes Shipyard to Build Guatemalan Harbor Tug

U.S. shipbuilding and repair yard Great Lakes Shipyard informs it has signed a contract to build another of its HandySize Class, 3,400 HP twin-screw tugboat for

BAE Systems Welcomes Record Number of Paid Interns

More than 140 university students from across the country are being given a unique insight into working life at BAE Systems, as part of the company’s 12-week summer internship program.

Drydocks World World’s Largest Turret

Drydocks World marked a milestone in completing the world’s largest turret mooring system. At almost 100 meters high, weighing over 11,000 tons and with a diameter of 26 meters,

Bulk Carrier Trends

MES Delivers Bulk Carrier STH Athens

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 60,000 dwt type bulk carrier M.V. STH Athens (MES Hull No. 1898) at its Chiba Works on August 27,

Break Bulk in Rotterdam on the Way Up

The opening of a new break bulk terminal is one of the many developments and investments in the break bulk sector in the port of Rotterdam; a sector that has

Collaboration Helps Save 2 from Sinking Yacht

The U.S. Coast Guard, the Alpena Sheriff's Department and several good Samaritans are assisting two men aboard a 42-foot sailboat that began taking on water early

 
 
Maritime Security Maritime Standards Navigation Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.4936 sec (2 req/sec)