Brazil orders dozen VLOCs

Brazilian iron ore miner Vale has ordered 12 very large ore carriers (VLOC) from Chinese shipbuilder RongSheng Shipbuilding and Heavy Industry for $1.6 billion. Each of the ore carriers will have a capacity of 400,000 dwt and delivery of the first of these vessels is expected in early 2011 with the final unit slated for completion in 2012.

Vale, also known as Companhia Vale do Rio Doce, or CVRD, has proposed larger ships to ply to Brazil-China route, thus reducing shipping costs and making its ore more competitive compared with nearer Australian or Indian ore.