3 May 2007
China-Brazil iron ore shipping line
Brazilian mining giant CVRD said Wednesday it had signed a freight contract with Bergesen Worldwide to create a shipping line to transport iron ore to China.
Dow Jones Newswires reported the 25-year contract includes the construction of four 388,000 metric ton bulk carriers, among the largest ships in the world, CVRD said. The first ship will enter operation in 2011.
In 1986, CVRD and Bergesen Worldwide launched the Berge Stahl, the largest bulk carrier in the world at 364,000 metric tons.
Bergesen Worldwide will also convert an oil supertanker into a bulk carrier, which will sail by 2008. The ship will exclusively transport iron ore to China from Brazil.
The freight contract should “contribute to reduced costs through economies of scale and easing in freight price volatility of our iron ore to China,” CVRD said.
In addition, CVRD signed a separate 20-year deal to build a 300,000 metric ton bulk carrier with Nippon Yusen Kaisha. The ship will also enter operation in 2011.
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