JFE Steel Launches No.2 Ultra Large Ore Vessel

JFE Steel announced on Friday the second iron ore transport vessel with 300,000 tonnes of capacity was completed at Ariake yard of Universal Shipbuilding. JFE Steel hires the vessel through Mitsui O.S.K. Lines for 15 years to transport annual 1.5 million tonnes from Brazil to Philippine sinter making subsidiary, Philippine Sinter Corporation (PSC). JFE Steel expects the large 2 vessels including same size vessel launched in May reduces the freight cost by 20 billion yen per year under higher ocean freight. The vessel, Nova Era started the first voyage. The vessel, which has 326 meters length, 55 meters width, 29.25 meters depth and 21.4 meters draft, can load 297,442 tonnes. The large vessel is expected to improve the transport efficiency by utilizing PSC’s 23.5 meters of deep port. JFE Steel launched 2 large vessels after the first one of Grande Progresso. With the 2 vessels, the firm can increase the long term hired rate from 85% in fiscal 2007 to 90% when the firm imports annual 45 million tonnes of iron ore including more than 10 million tonnes from Brazil.