Major Japanese shipping company Kawasaki Kisen Kaisha, Ltd ("K" Line) has concluded long term contracts with major Chinese steel companies Baosteel, Shougang and Wuhan Iron and Steel (WISCO) for the transportation of Brazilian iron ore to these companies.
One of the contracts with Baosteel covers three years from the second half of fiscal year 2007 for the transportation of iron ore from Brazil to China by a 170,000 tons capacity bulker. The quantity of annual freight is equal to approximately 0.5 million tons per year. The other contract with Baosteel is for 15 years from the first quarter of financial year 2011. The contract is for the transportation of iron ore by a 300,000 ton ore carrier, covering approximately 1.2 million tons per year of iron ore.
The contract with Shougang is for five years from the third quarter of fiscal year 2007. It is also for transportation of iron ore from Brazil to China by a 170,000 tons capacity bulker, with an annual quantity of approximately 0.5 million tons.
Finally, the contract with WISCO is for five years from the first quarter of fiscal year 2008. It is also for the transportation of iron ore by a 170,000 tons capacity bulker from Brazil to China, with an annual quantity of approximately 0.5 million tons.
"K" Line has announced that it will continue its active involvement in resource transport in the Chinese market.