Vale’s VLOC Starts Unloading its First Iron Ore in China

Chinamax ore vessel owned by the Brazilian company Vale started unloading its first iron ore in China on Wednesday after facing strong opposition from Chinese ship owners and steelmakers.

The 388,000t Berge Everest, one of the VALE’s massive VLOC’s, berthed at the port of Dalian and the 350,000t of ore must be unloaded by Saturday, December 31. It remains unclear who will buy the ore.

Vale signed loan agreements for US$1.23bn with the Export-Import Bank of China and the Bank of China for the construction of 12 Chinamax ore vessels in September 2010. Although the Company was striving to lower shipping costs to the nation, it had failed to obtain Beijing’s approval to allow the ships to even stop at Chinese ports.

The company’s first Chinamax ore vessel, Vale Brazil, made her maiden voyage in June but the Chinese government did not allow the ship to anchor at Dalian port so she was turned around somewhere in the Indian Ocean and was forced to sail to Italy.

The highly influential China Shipowners Association (CSA), with an 80% share in China’s shipping capacity, believes the very idea of the Vale-owned fleet will cripple China’s own shipping industry.

An incident involving the Vale Beijing, which was damaged at berth while preparing for its maiden voyage, is still being investigated. It is still difficult to decide whether Vale’s $8.1 billion investment, which includes a total of 35 of the behemoths, is the undertaking that will effect profit. Vale however remains confident despite these inconveniences.

[mappress]
World Maritime News Staff, December 29, 2011;