Vale, ICBC Sign Long-Term Iron Ore Transport Deal
- Business & Finance
Brazilian mining major Vale has signed a 27-year iron ore transport deal with ICBC Financial Leasing, the leasing arm of Industrial and Commercial Bank of China.
Under the contract of affreightment (COA), ICBC will transport about 16 million tons of iron ore annually for Vale from Brazil to China starting from the first half of 2018, Sinocast reports.
The deal is the third in a row Vale recently entered into with Chinese partners.
In March, China COSCO Shipping Corporation (COSCOCS) penned a 27-year agreement with Vale that will see the Chinese shipping giant transport 16 million tons of iron ore for Vale on annual basis. The contract was followed by a similar deal signed by China Merchants Energy Shipping for the same duration.
The third contract, reported to have been signed today, comes as a confirmation of the previous reports saying that Chinese shipping companies Cosco Group, China Merchants Group and ICBC Financial Leasing Co. had stacked up orders for 30 Valemax ore carriers worth a total of USD 2.5 billion.
The trio is said to have ordered 10 ships respectively at local yards, namely Shanghai Waigaoqiao Shipbuilding, Beihai Shipbuilding, CIC Jiangsu and Yangzijiang Shipbuilding.
The 30-strong Valemax fleet is slated for completion and delivery in 2018.
World Maritime News Staff