Vale Brasil, the world’s largest ore carrier, discharges in Taranto

Vale Brasil, the world’s largest ore carrier, celebrates today its arrival in Italy for its first discharge operation. The vessel safely and successfully berthed at Pier 4 at the Port of Taranto on July 14 and is currently discharging its 400,000 tons cargo of Carajas Sinter Feed to be consumed at steelmaker Ilva SpA, a four-decade long client and partner of Vale. Commissioned at shipyard Daewoo Shipbuilding & Marine Engineering Co in South Korea, Vale Brasil has a capacity of 400,000 tons, 362 meters of length and 65 meters of width – and is the first of seven ore carriers ordered from the South Korean shipyard, totaling an investment of US$748 million.

The development of this project represented a huge technological challenge in terms of innovation and the results are a success. The Vale Brasil allows high speed loading and unloading, is suitable for most modern ports in the world and has an efficient drainage system. This vessel also reduces carbon emissions by 35% per ton of ore transported - a “green” project that received in May the “Nor-Shipping Clean Ship Award”, an international industry acknowledgment for this achievement.
A highly efficient logistics infrastructure is a key element for competitiveness in the iron ore market. In order to maximize the efficiency of its operations and meet growing global demand, Vale is developing various initiatives to obtain economies of scale. The commissioned vessels will be part of the logistical solution between the company’s maritime terminals in Brazil and European and Asian customers. The ore carriers have a high standard of safety and will contribute to reducing the cost of long haul maritime transportation of iron ore to steelmakers.

“With our own fleet and chartered ships we reduce exposure to volatility in the freight market. Volatility doesn’t only affect freight costs but also the price of ore. As the new ships start to operate, stability of freight and ore will become even greater, helping Vale and its steel industry clients”, said the executive director of Marketing, Sales and Strategy José Carlos Martins.

Vale has also ordered 12 very large ore carriers with capacity of 400,000 tons from the Rongsheng Shipbuilding and Heavy Industries shipyard in China. These vessels, being built at the Chinese shipyard, have a total investment of US$1.6 billion. Besides 19 very large ore carriers, Vale will also have 16 other ships with the same dimensions, which will operate exclusively for the company under long-term contracts signed with ship owner partners. These 35 ships will be delivered between 2011 and 2013.

The Vale Brasil consolidates a long process of investment that Vale, historically, has been making in infrastructure, key to the competitiveness of Brazilian iron ore in the international market. “We will not stop investing and innovating. Vale’s investments in infrastructure are the largest in the country’s history, resulting in efficient logistics for our customers. US$9 billion has been invested over the past six years and in 2011 alone, there will be US$5 billion invested in the integrated mine-railroad-port-shipping”, said executive director of Integrated Operations, Eduardo Bartolomeo.