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China's Dalian port expands to take Valemaxes

(Agencies)
Updated: 2011-07-06 11:35

London - China Transport Construction Group has completed work to expand Dalian's port capacity, making it possible for ships as big as Brazilian miner Vale's giant bulk carriers to access a key port in top iron ore importer, China.

"(China Transport Construction Group) recently completed an upgrading project to expand Dalian's port capacity to 400,000 tons from 300,000 tons," China's state-owned Assets Supervision and Administration Commission of the State Council said in a statement dated July 1.

"This is the second port in China that can handle 400,000 tons class ore dry bulk carriers."

Related readings:  China releases new index for iron ore  Iron ore monopoly may end by 2015  Brazilian Vale to sell iron ore at higher price

Vale said three Chinese ports, Majishan, Dalian and Dongjiakou, are known for being able to receive its large dry bulk carriers, also known as Valemaxes.

Vale rolled out earlier this year Vale Brazil, the world's largest dry-bulk vessel, a ship designed to reduce the cost of shipping iron ore --the main steel ingredient to China, the company's biggest market.

On its maiden voyage however, the China-bound vessel, was diverted to Italy for commercial reasons and to allow time to finalize talks for future port deals, Vale said.

Steelmaker Ilva, the buyer of Vale Brasil's iron ore cargo expects the ship will reach Taranto's port on Wednesday, a spokesman for the company said.

Vale will have China and South Korea build 18 new giant bulk carriers as domestic Brazilian shipyards do not have capacity to take the order, Vale's chief financial officer said.