Cargo Business Newswire

Wednesday, May 27, 2015

China signs 20-year freight contract with Vale

China’s national shipping lines have made deals with Brazilian miner Vale to transport ore to China.

Vale completed the sale of four very large ore carriers to China Cosco Holdings for $445 million and reached an agreement to sell another four to China Merchants Energy Shipping, according to a Vale statement.

The four ships sold to Cosco will be operated by China Ore Shipping, a newly formed joint venture between China Cosco Holdings and China Shipping Development, under a 20-year freight contract with an option to extend it for another five years, according to a knowledgeable source.

The deal is part of an extensive package of infrastructure and railway deals that premier Li Keqiang has made with the Brazil government.

China Ore Shipping was established last Thursday with $330 million in issued share capital. China Cosco Bulk Shipping, a subsidiary of China Cosco, and China Shipping Development each hold 51 percent and 49 percent stakes, according to records from the Singapore Accounting and Corporate Regulation Authority.

For more of the South China Morning Post story: www.scmp.com