Japanese logistics company Nippon Yusen Kaisha (NYK Line) and
China's largest steelmaker Baoshan Iron & Steel Co. Ltd (
Baosteel) have recently signed a long term agreement for the transportation of
iron ore from Western
Australia over a period of 12.5 years.
The contract calls for transporting 1.7 million tons
iron ore per year from Western
Australia to
China for two and a half years from July 2006 to the end of 2008, and 2.3 million tons per year for 10 years from 2009. For this transport, NYK plans to deploy a bulk carrier currently in operation until the end of 2008 and a 230,000-ton bulk carrier, to be newly built, from 2009.
In 2003, NYK Line became the first Japanese logistics firm to conclude a long-term contract with
Baosteel for the transport of
iron ore from Western
Australia. Then in 2005, NYK entered into a long-term contract with the Chinese steelmaker for the transport of
iron ore from
Brazil.