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Friday, December 9, 2011

Take time for mega ships to enter China - Vale

Friday, 09 Dec 2011

Brazilian iron ore miner Vale said it would take time for its new mega ships to be able to enter Chinese ports but stood by its shipping strategy.

Its multi billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron ore carriers as it aims to tap demand in China, the world's No 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.

Mr Jose Carlos Martins Vale's executive director of iron ore and strategy told a news conference that "It was definitely not a mistake.”

These safety measures, the drafting situations when asked whether he regretted building the mega vessels before getting permission to berth at Chinese ports.

Mr Martins said that "I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia." Mr Martins would not speculate how long it will take.

He added that "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient.”

China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations.

(Sourced from Reuters)

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