Big is beautiful in the world of ore carriers

MOL and K Line opt for very large ore carriers to satisfy growing world demand for iron ore and other raw materials.

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

According to MOL, 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 the era of very large (over 300,000DWT) iron ore carriers and the company will be the first Japanese carrier to operate a vessel of this size. This contract is the latest result of MOL’s management strategies aimed at expansion and growth and the company has secured contracts from all major Japanese steel makers as well as others in Asia and Europe.

MOL also recently secured a contract to supply Baosteel in China with iron ore from Brazil using a very large ore carrier. This ship is the fourth MOL vessel serving Baosteel and these long-term contracts reflect a relationship that dates back more than a decade to when MOL first began calling on Baosteel. MOL plans to continue this relationship, working toward becoming Baosteel’s major carrier, with a target of 10 million tons of cargo per year.

As the next step in MOL’s bulk carrier fleet expansion programme, the company has decided to place further orders for another two 323,000DWT ore carriers. One will be built at Universal Shipbuilding in Japan while the shipyard for the other vessel has yet to be decided.

K line orders big bulker

Kawasaki Kisen Kaisha (K Line) has undertaken to construct a 300,000DWT super large ore carrier for the Japanese JFE Steel Corporation (JFE). The construction of the 330 metre long, 55 metre wide vessel is to be carried out by Universal Shipbuilding Corporation and delivery is scheduled for 2008.

The newbuilding is in accordance with a long-term voyage charter contract between JFE and K Line. When the new bulker enters into service, it will engage in iron ore transport for JFE as the very first super large ore carrier dedicated in the trade from Brazil to JFE?s steel plant in Villanueva, Philippines. As one of the largest bulk carrier ever deployed for JFE, the new ship will be of an optimal ship type that reflects the special handling capability of Villanueva?s deep-draught berth. It will also be the largest of all the bulk carriers/iron ore carriers that K Line has ever constructed and is a significant development in the company?s strategy.