A leak in the ballast tank of a 400,000 metric ton-capacity iron ore vessel leased to Vale was reported Monday, only two months after being delivered. The $110 million dollar ship, the "Vale Beijing," is part of Vale's plan to form a fleet of 35 "mega ships" to help curtail the cost of fluctuating cargo rates to China. Luckily, the leak was discovered while the vessel was being loaded at Ponta da Madeira, Brazil, instead of in service at sea.
According to the company that leased the ship--Seoul, Korea-based STX Pan Ocean Co.--it will undergo repairs while the cause of the leak is investigated. Currently, STX has a 25-year, $5.8 billion deal with Vale to operate as much as eight similar-sized vessels for the world's largest iron ore miner.