Rongsheng to deliver 12 VLOCs to Vale this year

21 March 2012 (Last Updated March 21st, 2012 18:30)

China Rongsheng Heavy Industries is planning to deliver 12 very large ore carriers (VLOCs) to Brazilian mining firm Vale in 2012.

Vale Rio de Janeiro

China Rongsheng Heavy Industries is planning to deliver 12 very large ore carriers (VLOCs) to Brazilian mining firm Vale in 2012.

Rongsheng has also signalled their intention to finally deliver two supersized vessels to Vale within the next two months. The vessels were originally scheduled for delivery in March or April last year.

The company said that most of the VLOCs ordered by Vale will be delivered by the end of the year, leaving one vessels to be delivered next year.

Rongsheng has also previously secured orders to build 16 VLOCs which included four vessels from Oman Shipping.

After taking the delivery of the vessels, Oman Shipping is planning to charter the four VLOCs to Vale.

Oman Shipping’s first VLOC, the VALE LIWA was transferred for the final outfitting at Rongsheng Heavy Industries shipyard in China.

Vale had ordered the 400,000 dwt VLOCs as part of its plan to reduce the cost of shipping iron ore to China.

The company had taken the delivery of its first VLOC in last November but ran into trouble as China refused to allow the vessel into the country’s ports earlier this year.

Rongsheng has posted net profit of RMB1.72bn ($272m) for the full year of 2011 ended 31 December compared to RMB1.71bn ($270m) for the same period last year.

Revenue for 2011 was RMB15.9bn ($2.5bn) an increase of 25.6% compared to RMB12.7bn ($2bn) for the same period prior year.

Last year, the company had won newbuild orders for 39 vessels of 4.6 million dwt worth $1.8 bn, down from orders for 46 vessels worth $2.26bn in 2010.

Image: Vale’s first 400,000 dwt VLOC was denied entry into the Chinese ports citing safety concerns. Photo: Robert Smith