NYK Line, Baosteel ink long term iron ore transportation contract

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.