NYK Agrees 20 Year Contract to Transport Iron Ore

Transportation group Nippon Yusen Kabushiki Kaisha (NYK) has agreed to a 20 year plus, long-time contract with Brazil’s Companhia Vale do Rio Doce (CVRD) to transport Brazilian iron ore.

The contract to transport approximately 1.3 million tons of iron ore from Brazil to China, starting in 2011, will use a new 300,000 ton iron ore carrier shuttle, to be built at Nantong COSCO KHI Ship Engineering Company.

This is the first long-term contract between NYK and CVRD and the first transportation contract using a new generation ship of 300,000 ton, very large ore carrier (VLOC) that NYK has signed with a non Japanese or Chinese customer.

NYK said that in order to respond to strong demands for iron ore from China, CVRD set a target to secure the efficient means of transportation, and NYK’s 300,000 ton VLOC meets its target. This is the first contract for CVRD to secure this new class of 300,000 VLOC.