SUBIC BAY FREEPORT, Philippines – The Subic Bay Metropolitan Authority (SBMA) and Vale International, SA are aiming to make this premier Freeport into an Asian transshipment hub for iron ore.
In a project approved by the SBMA Board of Directors, Brazillian company Vale International 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 GRT,” Tuazon explained. “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,” he said.
Tuazon also said that the Vale group decided to build a hub in Subic because it will be cost-effective to do so.
“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 also 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.
Moreover, Tuazon said that this project will be highly beneficial to Subic, adding that the Freeport will earn about R100 million from the project annually.
“Of course, 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.
Tuazon also said that the Vale group is looking into the possibility of building an onshore site.
“They are exploring if they can have a facility onshore where they can store minerals like coal—that is still being explored if it’s feasible. But the important thing is that this is Vale Mining, one of the biggest mining companies in the world and that they decided to come here,” he said.
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By: Jonas Reyes with a report from Franco G. Regala
Source: Manila Bulletin, Sept. 24, 2011
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