Vale, the Brazilian commodities giant, is continuing to negotiate with mainland and foreign shipowners over the sale of its fleet of 19 massive 400,000 dwt (deadweight tonne) Valemax very large iron ore carriers, a senior executive said yesterday.
Joao Mendes De Faria, Vale's business development director, declined to name the shipping companies citing confidentiality agreements. 'We are discussing with more than one Chinese shipowner, but of course it takes some time.'
The vessels were banned from calling at mainland ports by the Ministry of Transport earlier this year after a strong, vocal public relations campaign against the huge ships by the China Shipowners' Association.
Twelve of the Vale ships are being built by China Rongsheng Heavy Industries under contracts totalling US$1.6 billion, while a further seven similar sized ships were ordered from South Korea's Daewoo Shipbuilding and Marine Engineering.
A further 16 Valemax and slightly smaller ore carriers have been ordered by other owners, including Berge Bulk, an offshoot of the maritime empire founded by shipping tycoon Pao Yue-kong, and chartered to Vale on long-term contracts.
All 35 ships are due to be delivered by the end of 2013, Faria said yesterday towards the end of a three-day trip to Beijing. 'Maybe they will all be in shipowners' hands [by then]. I don't know,' he said. 'Financially speaking we would prefer to have them sold,' Faria said, adding that in terms of 'capex management it's better to have the ships in shipowners' hands'. Asked who he was seeing in Beijing, Singapore-based Faria said they included shipowners, shipbuilders, steel mills and traders.