Vale orders 12 new vessels for Asian 'shuttle service'

Brazilian iron ore giant Vale signed a contract with China's Rongsheng Shipbuilding & Heavy Industries for the construction of 12 large ore carriers, each with a capacity of 400,000 deadweight tonnes (dwt).

In a statement sent to Steel Business Briefing, Vale says those will be the largest ore carriers to be built in the world. They will form the central element of the company's “shuttle service” carrying iron ore from Brazil to Asia.

Vale had previously announced the construction of four 388,000 dwt ships, one 300,000 dwt and one 290,000 dwt converted crude carrier. Together with the new ships and three already existing Capesize vessels, the company will have a fleet with an estimated capacity to transport 30.2m tonnes/year of iron ore from Brazil to Asia.

The first of the new vessels is expected to be delivered at the beginning of 2011, says Vale, adding the completion of the order is expected to take place in 2012.

Vale will invest US$1.6bn in this contract. "This capital expenditure is in addition to our investment program of US$59bn for 2008-2012," says the company.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: August 12, 2008