Several Chinese Ports to Allow Large Vessels to Dock
A plan is currently studying the possibility of allowing several of the country’s port to receive larger vessels paving the way for Brazil’s Vale SA to deliver iron ore using their giant carriers. Although Chinese ship owners have expressed and opposed the access of Vale’s Ships due to concerns that is might worsen the shipping glut and take a chunk of the market share. But by allowing Vale entry will cut shipping costs of raw material that are used in China’s steel mills.
By approving Valemax ships to enter Chinese ports will help miners cut their transportation costs by a third and allowing it to better compete with Australian rival Rio Tinto and BHP Billiton that has mines closer to China. Early 2012 the China Ministry of Transport have barred these mega vessels from country ports amid safety concerns ever since the first 400,000 ton Valemax docked in Dalian Port in 2011.
Ships for oil and dry bulk commodities are not allowed to exceed the port’s nominal capacity which it rated about 250,000 to 300,000 tons for iron ore which don’t allow Valemaxes. But several port have been recently doing upgrade in the infrastructure to allow them to enter into the demand for dry bulk commodities and oil which place true capacity above approved capacity.