This monster will take forever to load and unload ! There might actually be time to get ashore. Who knows.
CVRD plans biggest ever ore carrier
By James Brewer, 14 June 2007 Lloyds List
COMPANHIA Vale do Rio Doce, the world’s largest iron ore producer, has plans on the drawing board for a 0.5m tonne ore carrier.
The Brazilian-based miner is waiting to see how its current giant ship projects go before moving to a firm order, but it is adamant about wanting greater control over seaborne trade.
José Carlos Martins, executive director for ferrous minerals at CVRD, revealed his company’s ambitions for the biggest ship yet to transport ore when he addressed the first London meeting of the prestigious Melbourne Mining Club, a key forum for executive discussion in the sector.
His US listed group has only just signed a contract with shipping group BW for construction/charter of four ‘China-max’ 388,000 dwt carriers, which would be the biggest of their type, and with NYK for a 300,000 tonner to enter operation in 2011, while a 270,000 dwt very large crude carrier is to be converted for ore.
“Our target is to reach 500,000 tonnes, but we are doing it step by step,” he said.
The tonnage is designed to help out on the booming export trades to Chin a — and amazingly is seen as profitable even returning home empty. Freight rates on the route have been above $50 per tonne, and a 400,000 tonner could produce operations at a rate of $12, said Mr Martins.
Planning for a zero cargo backhaul recalls the days when 500,000 dwt crude oil tankers were seen as producing terrific economies of scale. The difference is that those ships were built just before freight rates slid towards historic depths.
“We think we need to build bigger ships to reduce costs, because ships go full and come back empty,” said Mr Martins. CVRD is believed to have a 33% share of world seaborne trade in iron ore and pellets, and with BHP Billiton and Rio Tinto Zinc the three control more than 70%. It expects to produce 300m tonnes of ore in 2007, compared with 264m tonnes the previous year.
China was expected to import 380m tonnes of iron ore in 2007, but Mr Martins and his colleagues now say the figure will reach 400m tonnes. Total ore production is 780m tonnes and Mr Martins said the market could support 800m tonnes.
“But,” he added, “I wonder if there will be enough iron ore for that.”
Here is another press release from this company.
NYK agrees to an over 20 year, long-term contract with CVRD Nippon Yusen Kabushiki Kaisha (NYK; Head office: Chiyoda-ku, Tokyo; President: Koji Miyahara) has agreed to an over 20 year, long-term contract with Companhia Vale do Rio Doce* (CVRD; Head Office: Rio de Janeiro, Brazil; President and CEO: Roger Agnelli) to transport Brazilian iron ore. The contract to transport approximately 1.3 million tons of iron ore from Brazil to China, starting in 2011, will use a new 300 thousands ton iron ore carrier shuttle to be built at Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS). This is the first long-term contract between NYK and CVRD and the first transportation contract using a new generation ship of 300 thousands ton, very large ore carrier (VLOC) that NYK has signed with a non Japanese or Chinese customer. NYK is honored to provide the large scale modern ore carrier to CVRD. In order to respond strong demands of iron ore from China, CVRD set a target to secure the efficient means of transportation, and NYK 300 thousands tons VLOC meets their target. This is the first contract for CVRD to secure this new class of 300 thousands VLOC.
Established in 1942 and privatized in 1997, CVRD is the world’s largest iron ore supplier. The company also produces and sells manganese, copper, aluminum, etc. The Head Office is located in Rio de Janeiro and the company is listed in the Sao Paulo Stock Exchange (BOVESPA) and the New York Stock Exchange (NYSE). Annually, CVRD produces approximately 260 million tons of iron ore and exports approximately 200 million tons. Total sales in 2006 amounted to 45,292 million reais( about 2,700 billion yen).