Vale may place bulker order locally

Brazilian mining giant Vale SA has given domestic shipbuilders the opportunity to build four 400,000 dwt bulk carriers. The company had been under pressure from the government to make investment in domestic industry.

Vale recently met shipbuilder representatives to explain its shipping needs and had outlined the technical specifications and supply conditions required. According to Vale, the company held meetings with Brazilian shipbuilders as long ago as November 2007 but had received no replies on possible orders, despite giving them ship-specification proposals. At that time Brazilian shipbuilders said they didn’t have the capacity.

Vale said it had now given local shipbuilders until 15 October to put forward their proposals.

In August last year, Vale ordered 12 400,000 dwt bulk carriers from China’s Rongsheng Shipbuilding and Heavy Industries, worth $1.6 billion. Not all Vale’s shipping orders have gone abroad since the company placed a $171 million order for 15 tugs and 16 river barges with Brazilian shipyards in January this year.