The world's largest iron ore producer, Brazil's CVRD (Vale) which lasted for nearly four years, the shipbuilding program tailored for the Chinese market in multi interests of the game, unable to move.

Because the interests of diversity and economic and technical feasibility, Recently, CVRD iron ore in Singapore Ministry of director of business development for a long time Ann (Jo? O Mendes, Faria,) frequent travel to China to lobby the relevant government departments and enterprises.

Vale and part of the Chinese shipping company contradictions into the open in early May before the long security in China to lobby. Contradictions sparked off by the foreign media reported that Brazil's CVRD refused to use the Chinese fleet, resulting in the Chinese shipping companies suffered huge losses. In this regard, the general manager of COSCO Group Ma Zehua public said, "a series of actions of the Brazilian mining enterprises are unreasonable, we think they make a decision based on the COSCO Group to lobby the Government not to accept the Vale".

June 21, security for a long time avoided in an exclusive interview with this reporter Vale and the contradictions of the COSCO Group, and has repeatedly stressed that CVRD hopes to strengthen cooperation with COSCO.

For a long time Ann also said that not all shipping companies in China are opposed to the Vale of shipbuilding plan, the financial position against our fleet, healthy financial position of the China Shipowners' We welcome. "

Vale huge, it is likely to change the pattern of global shipping shipbuilding plan, and also received the support of the Chinese iron and steel enterprises, document 13 January 29, 2012 issued by the Office of the Ministry of Transportation does not allow all port according to the berthing of the ship's security to make their own decision, the Vale of the shipbuilding program has encountered unprecedented obstacles.

"The introduction of 13 document, making the CVRD main rival BHP Billiton, Rio Tinto beneficiary." The advisory said a Vale hired.

Long Ann admits that the reporter, to convince the Chinese Ministry of Transportation to accept Vale's fleet into the territory, "is a big challenge, but I have the confidence to convince the Chinese government, have the confidence to clearly explain our plans to the relevant departments of China."

Vale of the abacus

Although Brazil has the world's largest reserves of high quality iron ore, but because of the distance between Brazil to China for more than three times the distance from Australia to China, a long time, Brazil's iron ore business in competition with India and Australia has been at a disadvantage.

Shipping distance of this competitive disadvantage for a long time, the volatile shipping market in 2008, leading to the Vale determined to spent a lot shipbuilding.

"The shipping fee is the world's most volatile markets." Long security further explained, "In 2001, I arrived in China, the shipping charges from Brazil to China to $ 6 / t, when I relocated to Singapore from China in 2008 time, the shipping fee is $ 120 / t, and now has dropped to about 18 U.S. dollars / ton. "

For Vale, freight volatility is so great that interfere with their financial stability. "We are extremely important to the stability of the investment, so that we can accurately determine the changes in our financial, in order to make accurate investment decisions, so we have to shipbuilding." Long safety.

Vale plans to build is not a general fleet. New the ship Valemax, known as Chinamax, has a deadweight of 400,000 tons, is so far the world's largest ship, a total of 35, the total cost has reached $ 4.2 billion.

Chin, Amax is double the benefits of the Vale. On the one hand, you can mitigate the risks of the Cape of Good Hope shipping market fluctuations on the Vale;

Vale, on the other hand, can get a lower shipping costs, enhance its competitiveness with Australia.

Chinamax the advantage lies with conventional capesize vessel (the Capesize Ship, dwt, compared to 180 000 -30 tons), Chinamax can save 35 percent of the unit fuel costs and carbon emissions at the same time be able to port handling time in half.

Vale still need to face market risk Chinamax. If the decline of the construction costs of new ships, Chinamax will lose its cost advantage, in fact, in 2008 and 2009 shipbuilding costs down has led to lower Vale of order discounts.

Interests of all parties Game

Artane Order of long, Vale shipbuilding plan involves multi-stakeholder, while part of the shipowner's strong opposition, there are a number of stakeholders expressed their support.

Multistakeholder game camp, the most outstanding is the COSCO Group.

Contradiction in the transport group and the Vale, the Vale cautious and polite. For a long time, said that as against the Vale, "a lot of dry bulk carriers ordered in 2008, and high charter agreement signed with the other owners of some of China Shipowners, global excess capacity, China Shipowners in financial trouble. "

In the domestic market, "financial trouble" the largest one of China Shipowners, that is, COSCO Group. COSCO Group's listed companies in China COSCO (601919.SH) 2011 report shows that last year, the China Ocean loss amounted to 10.49 billion yuan, becoming "A-share loss".

COSCO into a major cause of the loss of prosperity before the financial crisis broke out in 2008, the global shipping market, COSCO to take this expansion, signed a lot of personalized charter contract, and some medium-and long-term lock the volume and price.

Vale of the ship to enter the Chinese market in the short term will be to COSCO bad performance worse. In this regard, the COSCO Group has placed the foot of the confrontational attitude.

Chinese steel mills are looking forward to the Vale of the ship into port. Zhang Changfu of the Secretary-General of the China Iron and Steel Association, told the reporter, said Vale, the ship can reduce the cost of transportation of the steel mills, and for more high-quality iron ore.

The Shougang one person responsible for iron ore imports, the reporter said, In order to gain more support from the domestic steel mills, Vale "unexpected" will ship docked into Japan and South Korea, Japan and South Korea more high-quality iron ore in Brazil to have a cost advantage, the competitiveness of the Chinese steel mills will be further weakened. "

For a long time, said, "docked in Japan, we expected, but for Japanese companies, is overjoyed, because we had planned in China docked, we expected to dock within this year in South Korea."

Chinamax currently only a small number of ports in the world can be berthed, including Qingdao and Dalian Port. However, 13 of the Ministry of Transportation documents, Qingdao Port, Dalian Port not accept Chinamax.

COSCO and other large state-owned owner of the dominant relationship with the Port Vale and COSCO agreed protocol has become the key to overcome the impasse.

It is not no turning point. A source close to the COSCO state-owned iron ore trade, told this reporter that, at present, COSCO has been willing to negotiate with CVRD.

Long security, told reporters, Vale do shipowners never considered, COSCO was the first shipowner Vale seek cooperation in the long-term charter agreement on Chinamax Vale is still willing to charter with COSCO and even purchase Chinamax to discuss the possibility of cooperation.


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