The industrial conveyor belt between Brazil and China has just added another key supply chain component to the south of Shanghai.
Brazilian miner Vale has announced that the board has approved for its subsidiary, Vale International, to set up a joint venture with China’s Ningbo Zhoushan Port to build, own, and operate the West III Project in Shulanghu Port in Zhoushan.
The West III Project will see the expansion of the Shulanghu Port facilities, developing a stockyard and loading berths with an additional 20m tonnes per year capacity.
Vale expects to secure a total port capacity of 40m tonnes per year in Shulanghu through the project, which will help the company to optimise its overall supply chain costs.
Total investment on the project is around $624m. Vale and Ningbo Zhoushan Port will each own 50% equity interest of the joint venture.
In August, Vale inaugurated a grinding hub at Shulanghu Port, which has three production lines and a total capacity of 3m tons per year.