The world's largest iron ore producer, Brazilian miner Vale, has announced that it has entered into a contract with Chinese shipbuilder Rongsheng Shipbuilding and Heavy Industries for the construction of twelve super sized iron ore carriers with a capacity of 400,000 deadweight tons (dwt) each.
As a part of Vale's dedicated maritime shuttle service between Brazil and Asia, created in order to reduce the cost of long haul maritime transportation of iron ore to steelmakers, the ships ordered are the largest ore carriers to be built in the world. The first vessel is expected to be delivered in early 2011, while the completion of the order is scheduled in 2012.
The total cost of the investment is US$1.6 billion, which is an addition to Vale's investment program of US$59 billion for 2008-2012.
The dedicated Brazil-Asia shuttle service will have 18 very large ore carriers, with a total tonnage of 7.1 million dwt, including the already existing four 388,000 dwt ships, one 300,000 dwt vessel and one 290,000 dwt converted crude carrier. The fleet will have an estimated capacity to carry 30.2 million metric tons of iron ore per year from Brazil to Asia, corresponding to 31 percent of Vale's shipments to China in 2007.
Moreover, in order to maximize the efficiency of its operations, Vale also plans to use longer trains with 330 wagons and higher efficiency locomotives, with on-board computers and higher axle loads.