NYK Concludes 12-year Contract with Baoshan Iron & Steel - To Transport Brazilian Iron Ore to China
August 26, 2004
Nippon Yusen Kaisha (NYK) has concluded a long-term contract for the transport of Brazilian iron ore with Baoshan Iron & Steel (Shanghai Baosteel International Economic & Trading Corp.), the largest iron and steel manufacturer in China. Approximately 600,000 tons of iron ore per year will be transported beginning the first half of 2006 for 12 years. To facilitate the increase of Baoshan Iron & Steel's annual volume transported to Baoshan Terminal, NYK will introduce a new vessel with a large load cargo capacity (200,000-ton class vessel to be completed between 2007 and 2008).
NYK previously transported iron ore for Baoshan Iron & Steel based on spot or short-term agreements; however, as Baoshan Iron & Steel highly evaluated NYK's steady performance for long distance transport, a 10-year consecutive voyage contract for the transport of iron ore from western Australia was concluded between the two companies. Therefore, NYK's transport of the Brazilian iron ore will be the second long-term transport engagement with Baoshan.
The Baoshan Iron & Steel Group produces 20 million tons of basic steel per year (as of 2003). Since other major iron and steel companies in China individually produce basic steel at levels between approximately 8 million to 10 million tons, Baoshan Iron & Steel Group is an outstanding producer of basic steel.
Outline of Agreement
| Duration | : | 12 years |
| Transport volume | : | Approximately 600,000 tons per year |
| Commencement | : | First half of 2006 |
| Carrier | : | One NYK cape size bulker (200,000-tons) |