Brazil’s iron ore exporter CVRD is planning to set up an iron ore distribution centre at Qingdao port in China. The idea is to reduce freight costs and therefore make the company more competitive with rivals BHP and Rio Tinto. Similarly, it has signed a distribution deal with the port of Dalian encompassing 5–10 million tonnes of iron ore up to 2020.
In addition, the company has announced construction of 16 400,000dwt iron ore carriers, the first of which will be
inaugurated this year. The aim is to reduce transport costs by 30% when compared with a 200,000dwt vessel. These new
vessels will be able to access Qingdao port, which is one of the few in China capable of accommodating this size of bulk carrier.