MOL orders a very large iron ore carrier

Mitsui O.S.K. Lines (MOL) has signed an agreement with Nippon Steel Corporation, one of the world’s largest steel companies, to develop and build one of the world’s largest iron ore carrier. The 323,000DWT bulk carrier will be built by Mitsui Engineering & Shipbuilding (MES) with delivery slated for the second half of 2007. Ship particulars are 340m long and 60m wide with a draught of 21m and the new bulker will operate under a long-term contract transporting iron ore from Brazil to Japan.

MOL said that the worldwide iron ore trade is showing signs of rapid growth and, since 2003, MOL and Nippon Steel have held a number of discussions about the most efficient way to transport iron ore from Brazil, the world’s largest exporter, to ports serving Nippon Steel works. The companies concluded that this type of very large bulk carrier not only fits Nippon Steel’s fleet deployment plan, but will also enable competitive freight rates to be achieved even for the long-distance shuttle between Brazil and Japan because it can fully utilize the capabilities of ports serving their Oita and Kimitsu Works.

Construction of the new vessel brings MOL into a new era of very large (over 300,000DWT) iron ore carriers. This contract is the latest result of MOL’s management strategies aimed at expansion and growth.