NYK Signs Long-Term Contract with WISCO
November 28, 2007
Nippon Yusen Kabushiki Kaisha (NYK; head office: Chiyoda-ku, Tokyo; president: Koji Miyahara) has signed a 23-year contract with Wuhan Iron and Steel (Group) Corporation (WISCO; head office: Wuhan, Hubei, China; president: Deng Qilin) for the transport of iron ore. This is the first long-term deal between the two companies.
During fiscal 2006, WISCO produced 13.76 million tons of raw iron and steel and currently ranks as China' fifth-largest producer. Under the agreement, some 52 million tons of iron ore mined in Western Australia will be shipped primarily to Beilun, Ningbo, in China' Zhejiang province. Shipments will begin near the end of this year, and for the first three years of the contract, NYK will provide service by using existing bulk carriers. A over 230,000-ton iron-ore carrier will then go into service for the transport of this ore.
WISCO' agreement with NYK resulted from the Chinese company' strategy of fostering long-term deals with domestic and overseas shippers. WISCO plans to reach a production volume of 50 million tons by 2012.