Brazil's Vale Opens Malaysia Port in Bid to Cut Freight Costs
Brazil's Vale SA on Friday inaugurated a $1.4 billion port in Malaysia able to receive and blend iron ore from its mega-ships, an important step in the miner's battle to cut transportation costs to the crucial Chinese market. Brazil's distance from China - which accounts for nearly 70 percent of the global seaborne market for iron ore - has been a distinct disadvantage in Vale's attempts to compete with closer Australian rivals BHP Billiton Plc and Rio Tinto Plc. The port in Malaysia, as well as the giant ships known as Valemaxes, are part of a plan to address the problem. Its urgency has grown this year as the price of iron ore has tumbled 40 percent. Such a facility is particularly important as a two-year-long ban on Valemaxes docking at Chinese ports remains in force.
Vale’s Valemax Ships Regain Admittance to Asian Ports
Vale SA of Brazil said it has increased access of its Valemax iron ore carriers to Asian ports. The company even docked one of its ships in China where a ban on the giant vessels has been in effect for more than a year, Reuters.com reported. Reuters reported on April 18 that the Vale Malaysia docked at China's port of Lianyungang April 15 and left April 17 after unloading its cargo, but the 402,285 deadweight ton (dwt) ship, one of the world's largest bulk freighters, was only partly loaded. The company hopes the giant ships will help slash costs of shipping ore to China, the world's largest iron ore market and compete with Australian rivals BHP Billiton Plc and Rio Tinto Plc, whose mines are closer to Chinese customers.
QinetiQ Appoints Mellors CFO
QinetiQ Group announced the appointment of David Mellors as Chief Financial Officer. It is anticipated that David will take up his new role with effect from the end of August 2008 when he will also join the QinetiQ Board as an Executive Director. David, 39, joins from Logica PLC, the IT and business services group where he is the Deputy CFO. Previously he was the CFO of Logica’s International division covering operations in North America, Australia, Middle East and Asia and prior to that the Group Financial Controller.
