Nippon Steel Throws 5 Large-Size Ore Carriers by 2010

Nippon Steel enhances transport efficiency of iron ore. The firm will introduce total 5 ore carriers with each deadweight capacity at 300,000 tonnes. The firm brought the second carrier on the route from Brazil on 5 August while the first carrier was deployed last year. The firm plans to introduce the other 3 carriers until 2010 for less transport cost by the introduction of large-size carriers and lengthening of affreightment. The firm estimates annual economic effect at 10 billion yen per carrier by the introduction of a large-size carrier on the route from Brazil. The firm improves transport efficiency of iron ore and coal at 78 million tonnes per year. On 5 August, Nippon Steel launched a new ore carrier of 320,000-tonne deadweight capacity on the route from Brazil. The new carrier transports Brazilian ore at 1.4 million tonnes per year, which can freight ore by double compared with a general cape-size carrier. The firm plans to have 4 ore carriers on the route from Brazil until 2010. Nippon Steel will also introduce an ore carrier of 300,000-tonne deadweight capacity on the route from Australia in September 2008. Total 8 ore carriers will exist on Australian route. Marine transport freight of Brazilian ore is about US$ 83 per tonne, down from the peak at above US$ 100 in June. However, the freight still stays 50% higher than a year earlier.