Steelorbis Shanghai
On August 25, Dalian Port Group held a ceremony to mark the signing of a cooperation agreement with Brazilian mining giant Vale. According to the agreement, which will be valid until the end of 2020, Dalian Port will provide Vale with services including discharge, iron ore blending, and storage.
Brazil-based miner Vale is the world's largest producer and exporter of iron ore. Vale's iron ore output accounts for 80 percent of Brazil's total iron ore output, and its business covers over 20 countries and regions across the world. With the continuous development of its economy, China has already become the world's largest importer of iron ore. In 2006, Vale sold 70 million mt of iron ore to China, rising to 100 million mt in 2007. Vale is developing an iron ore logistics system, in the scope of which it is planning to build 12 vessels of 300,000 dwt for the transportation of iron ore.
With its hundred-year history, Dalian port is one of the largest of China's coastal ports, and has been developing into the economic center of northeastern Asia by virtue of its location and natural advantages. In the present day, Dalian Port has one 300,000 dwt berth for iron ore loading and unloading, and one 100,000 dwt berth for iron ore imports and exports. The port, with a wharf apron of 23 meters in width, is designed for loading and unloading of 15 million mt of iron ore annually. With the completion of the third storage yard, total storage capacity will be increased from the current 4.6 million mt to six million mt.
Cooperation between these two companies provides a win-win situation for both sides. It can help reduce the production costs of Chinese mills and raise the competitiveness of Vale's products at the same time. In addition, this cooperation will play an important role in boosting Dalian as northeast Asia's shipping center.