MANILA, Philippines — Brazilian-based Vale International, SA is planning to build a transshipment hub at Subic Bay for iron ore distribution in Asia.
Vale International is one of the world’s largest producers of iron ore and controls the largest share of the seaborne trade market for iron ore.
The company has proposed to carry out an iron ore transshipment operation from its Valemax mother vessel to smaller daughter vessels or feeders which are either Panamax or Capesize types, by using a purposely-designed floating terminal to be located in Subic Bay.
Lawyer Redentor Tuazon, SBMA deputy administrator for operations, said that the proposed transshipment hub will be the biggest in the world in terms of operations.
“The mother vessels that they use have a gross register tonnage (GRT) of 400,000. These are ultra large carriers that they call Valemax. They are the biggest in their class, the biggest in the world in operations, and they will use Subic Bay Freeport as the hub in Asia,” Tuazon said.
“The Vale group decided to build a hub in Subic because it will be cost-effective. The rationale for the whole project is economies of scale. You have big ships that will transfer the iron ore to two or three smaller vessels, so that the smaller ports in China will be able to accommodate them,” he said.
Tuazon stressed that the project gives importance to safety standards and that a hazard and operability (HAZOP) study has been conducted to ensure safety.
He also noted that all of the vessels to be used are insured and are covered with protection and indemnity insurance.
“This project will be highly beneficial to Subic, adding that the freeport will earn about P100 million annually. Subic will be on the map in terms of floating terminal operations, considering the reputation of Vale as one of the biggest mining firms in the world,” he added.
The Vale group is exploring an onshore facility where they can store minerals like coal. SBMA seaport department manager Capt. Perfecto Pascual said that the Vale group will soon begin their operations for the distribution of iron ore to northeast Asian countries, specifically China, the biggest user of iron ore in the world.
“The Vale group will start operations in October, and that will be a great revenue earner for us since they will be bringing in big ships and the floating storage ship that will be permanently stationed at Subic Bay,” Pascual said.
==============================================================================
By: Edu Lopez
Source: Manila Bulletin, Sept. 30, 2011
To view the original article, click here.
Comment here