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March 29, 2004 MOL Signs Contract to Transport Iron Ore
from Brazil to China | ||||||||
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| Left: Baosteel Chairman, President Xie Qihua Center: The Chinese Minister in Japan Lu Shuyun Right: MOL President Kunio Suzuki |
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TOKYO, JAPAN (March 26, 2004) - Mitsui O.S.K.
Lines (MOL; President: Kunio Suzuki) today
announced the March 24 signing in Tokyo of
a long-term contract with Shanghai Baosteel
Group of China to transport iron ore with
a very large ore carrier of 300,000 deadweight
tons . The agreement marks the fourth long-term
contract between the two companies.
The contract was signed at MOL's headquarters
in Toranomon, Tokyo, with top officials from
both companies on hand, including Baosteel
Chairman, President Xie Qihua and Director,
Vice President He Wenbo, the Chinese Minister
in Japan Lu Shuyun, MOL President Kunio Suzuki
,and Managing Executive Officer Saburo Koide.
The 20-year contract will take effect by
the second half of 2008 to the first half
of 2009 after the completion of a newly built
300,000-ton ore carrier for a consecutive-voyage
charter of iron ore from Brazil to China.
The signing also includes a 15-year contract
starting in April 2004 for the completion
of a new 200,000-ton bulker for a consecutive-voyage
charter of iron ore from Western Australia
to Shanghai, which was agreed upon and announced
in December 2003.
Background
In addition to importing iron ore from Western
Australia, Baosteel began to look into a
plan to adjust its fleet to allow imports
of ore from Brazil, the world's largest exporter
of iron ore. Baosteel was impressed by the
MOL proposal to shuttle ore from Brazil to
China with a very large ore carrier, and
discussions ultimately led to the current
contract.
This ship is the fourth MOL vessel serving
Baosteel. These long-term contracts reflect
a relationship that dates back more than
a decade to when MOL first began calling
on Baosteel, and impressed the company with
its performance in the transport of iron
ore. Over that decade, the two companies
built a relationship of mutual trust and
a strong partnership. MOL plans to continue
this relationship, working toward becoming
the Baosteel's major carrier, with a target
of 10 million tons of cargo per year. As
the next step in MOL's program, the company
is considering construction of additional
300,000-ton ore carriers. Top executives
from both companies discussed and confirmed
this plan at the current contract signing.
MOL will continue to watch the ore shipping
market very closely, identifying needs as
they arise and take action to supply Baosteel
and other Chinese primary industry manufacturers
with the resources they need.