Brazilian iron ore producer Vale is said to be in talks with Chinese shipbuilders and leasing companies to build about 50 giant Valemax bulk carriers, media reports said Wednesday.
According to reports, ships will be contracted on a 20-year lease to facilitate iron ore transportation from Brazil to China.
Major Chinese shipping company Cosco Holdings Co. may build around 20 of the ships, reports said, adding ship financier Shandong Shipping Corp., ICBC International Leasing Ltd. and China Merchants Energy Shipping Co. could build additional 10 ships each.
Each carrier is estimated to move about 2 million mt of iron ore to China on an annual basis.