Vale's large vessel is expected to make its first call at Lianyungang

2014-11-25 08:00

On November 23, a Jiangsu Provincial Government delegation led by Jiangsu Provincial Party Secretary Luo Zhijun met with senior executives of Vale in Brazil to discuss various cooperation initiatives between Lianyungang and Vale. Mr. Gurinder Singh, Director of Shipping and Distribution at Vale, Mr. Luiz Fernando Landeiro, Director of Operations for Southeastern Ports, Mr. Roberto Gottschalk, Director of Sales and Commercial Management for Iron Ore Business in South America, and Mr. Marcio Senne, Global Director of External Affairs, all attended the meeting. During the meeting, Luo Zhijun stated that Jiangsu Province and Vale have a solid foundation for cooperation and expressed hope that both sides would accelerate the promotion of cooperation matters such as the bulk freighter route from Lianyungang to Brazil and the establishment of an iron ore spot trading market in Lianyungang.
Senior executives of Vale, representing the company, expressed sincere gratitude to the Jiangsu Provincial Party Committee and Provincial Government for their continuous support to Vale. Mr. Gurinder Singh, Director of Shipping and Distribution at Vale, stated that in July this year, Chinese President Xi Jinping made his first state visit to Brazil, and Vale's Tubarão Port was honored to sign a memorandum of cooperation with Jiangsu Province's Lianyungang Port during this period, establishing a green friendly port relationship. As a long-term strategic partner of China, Vale supports China's sustainable development by investing in and building the most efficient and environmentally friendly logistics system to provide China with more high-quality iron ore products.
Secretary Luo Zhijun expressed appreciation for the good cooperation carried out by Vale and Jiangsu Province in various fields. He said that Jiangsu Province is an important trading partner for Brazil and one of the most important import destinations for Brazilian iron ore and other products, and both sides have a solid foundation for cooperation in port logistics and shipping. The cooperation between Jiangsu Provincial Lianyungang Port Group and Vale began in 2010, and currently, Vale has become the largest supplier of imported iron ore for Lianyungang Port.
The bulk cargo in the bulk freighter route refers precisely to Vale's iron ore. For many years, Vale has hoped to use its 400,000-ton Valemax ultra-large iron ore carriers to dock at China, the largest iron ore consumer market, thereby reducing costs and lowering the price of its iron ore. However, due to opposition from Chinese shipowners, Vale's iron ore currently can only first go to its specially built transshipment center in Malaysia, and then be transshipped to China after transferring to vessels that comply with deadweight tonnage restrictions.
However, as Chinese shipowners and Vale gradually reconcile, the possibility of large vessels docking is continuously increasing. COSCO and China Merchants Group signed 25-year long-term iron ore transportation agreements with Vale in September and October respectively, all of which clear obstacles for Vale's large vessels to berth at Chinese ports.
And for this meeting, Jiangsu Provincial Party Secretary Luo Zhijun personally led the team, clearly well-prepared, and Lianyungang is expected to achieve breakthrough progress. Prior to this, Lianyungang had repeatedly expressed its willingness to cooperate with Vale; first, in April last year, a Valemax vessel was allowed to dock at Lianyungang after reducing its weight, and then Lianyungang proposed to simplify the declaration procedures for the entry and exit of ultra-large vessels starting in November.
During the talks, Luo Zhijun stated that he was pleased to see that Lianyungang Port and Tubarão Port had made substantial progress in promoting shore power technology, especially in September this year, when Vale commissioned Jiangsu Province's Rongsheng Heavy Industries ( Location Comments News Careers Stocks ) built 400,000-ton large vessel underwent shore power equipment installation and testing in Lianyungang, becoming one of the fastest implemented projects among the China-Brazil signed initiatives. He hoped that both sides would accelerate the promotion of relevant cooperation projects in the memorandum, including launching the Lianyungang to Brazil bulk freighter route and establishing an ore spot trading market in Lianyungang.

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