NYK agrees to 20+ year contract with CVRD

By: | at 08:00 PM | Liner Shipping  

Nippon Yusen Kabushiki Kaisha has agreed to an over 20 year, long-time contract with Companhia Vale do Rio Doce to transport Brazilian iron ore.

The contract to transport approximately 1.3 million tons of iron ore from Brazil to China, starting in 2011, will use a new 300 thousands ton iron ore carrier shuttle to be built at Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS).

This is the first long term contract between NYK and CVRD and the first transportation contract using a new generation ship of 300 thousands ton, very large ore carrier (VLOC) that NYK has signed with a non Japanese or Chinese customer. NYK is honored to provide the large scale modern ore carrier to CVRD.

In order to respond strong demands of iron ore from China, CVRD set a target to secure the efficient means of transportation, and NYK 300 thousands tons VLOC meets their target. This is the first contract for CVRD to secure this new class of 300 thousands VLOC.

Established in 1942 and privatized in 1997, CVRD is the world’s largest iron ore supplier. The company also produces and sells manganese, copper, aluminum, etc. The Head Office is located in Rio de Janeiro and the company is listed in the S’o Paulo Stock Exchange and the New York Stock Exchange. Annually, CVRD produces approximately 260 million tons of iron ore and exports approximately 200 million tons. Total sales in 2006 amounted to 45,292 million reals (about 2,700 billion yen).


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