CVRD to develop Brazil-China shuttle service

The Brazilian company Companhia Vale do Rio Doce (CVRD) has entered into a 25-year contract of freight with Bergesen Worldwide (B.W. Bulk), the world’s leading owner of very large ore carriers, which will involve the construction of four very large ore carriers, each with a capacity of 388,000 dwt. These will be the largest ore carriers in the world, the first of which will come on stream in 2011.

Consistent with its history of pioneering the deepest and biggest iron ore loading facilities, CVRD is once again set to lead the introduction of the largest ore carriers in the world. In 1986 CVRD, with B.W. Bulk, had introduced the ?Berge Stahl? at 364,000 dwt, which is currently the largest ore carrier in the world.

In addition, CVRD has entered into a separate contract where BW Bulk will convert a very large crude carrier (VLCC) into a very large ore carrier (VLOC). The converted VLOC will commence service in 2008 on the Brazil – China shuttle service.

CVRD has also entered into a 20-year contract for a new generation 300,000 dwt ore carrier with Nippon Yusen Kaisha (NYK) of Japan, also to be delivered in 2011.

Construction of this $83.5 million newbuilding has been awarded to the Chinese shipyard of Nantong COSCO KHI.