As Vale’s very large iron ore carriers (VLOCs), also known as the Valemaxes, were finally allowed to dock at Chinese ports, the local ship-owners association, CSA, said it will “closely monitor” the loading of the company’s VLOCs at Chinese ports, according to a media report.
The association’s statement reinforces its concerns about the interests of the local dry bulk ship owners.
A media report this week noted that CSA has been lobbying to prevent the entry of the Valemaxes in China “over operational safety as well as criticizing Brazil’s mining giant Vale for trying to monopolize the seaborne transportation” of the commodity.
The association’s executive vice chairman, Zhang Shouguo, said it respects China’s decision of allowing Vale’s VLOCs to dock at Chinese ports, but pointed that the trade group will “closely monitor the impact of the Valemaxes on our Capesize market.”
Shouguo added that the decision couldn’t mean that China’s domestic bulk owners “can be left behind during that process [of evolving in China’s economy].” But he added that “a balance is needed between protecting the interests of our own companies and welcoming foreign trade and investments.”
As Vale’s VLOCs are now allowed to dock at Chinese ports, local ship owners would need to use more of their smaller bulk carriers as a way to compete with the Vale large ships, a media report said.
After preventing Vale’s large iron ore carriers to dock at Chinese ports for three years, China allowed earlier this year the Brazilian miner to load its 400,000 mt ships at four ports.
The ports of Qingdao, Dalian, Tangshan Caofeidian and Ningbo will allow Vale to dock its Valemax giant vessels, once the Brazilian company meets the “technical standards”, China's state planner, the National Development and Reform Commission, recently said in a joint statement with the nation’s Ministry of Transport.
Vale had been prevented to dock its Valemax vessels in China since early 2012, as a result of safety concerns. Earlier this year, Vale signed a deal with Cosco to sell four large ore carriers (VLOCs) for $445 million.