Qingdao Port to Build 1st 400,000-tonnage Iron Ore Terminal

Chinese port operator Qingdao Port Group Co., Ltd. plans to pour CNY 3 billion into the construction of terminals in Dongjiakou Port Area, disclosed the vice president, Tian Guangwen.

The first to-be-built project is a 400,000-tonnage iron ore terminal, which is due to be completed by the 2010-end at the earliest. The terminal is built to berth 400,000-tonnage iron ore carriers of Vale (NYSE: VALE).

Currently, Vale's annual iron ore output reaches 300 million tons, most of which are sold to China. Amid the financial crisis, the mining giant is also considering reducing costs. One way is to build large carriers for long-distance transportation.

Vale plans to build sixteen 400,000-tonnage iron ore carriers before 2012. The first one of them will take water in 2010, which will lower transportation costs by 30% compared with two 200,000-tonnage carriers.

Qingdao Port Group will construct four 400,000-tonnage, two 200,000-tonnage and five 100,000-tonnage terminals in Dongjiakou Port Area, respectively designed to load and unload iron ores, crude oil, coals and bulk cargos.

Source: www.nbd.com.cn (September 18, 2009)

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