Zhanjiang Port to build $1.5bn Guangdong berth.
CHINA"s terminal operator Zhanjiang Port Group is planning to build a 400,000 tonnes berth in China"s southern Guangdong province, according to a report by Dow Jones.
The new facility is being built to take advantage of the rapid development of Brazilian ore miner Vale"s activities in China, according to the Chinese-language website, China Review News.
Zhanjiang Port Group chairman Zheng Riqiang said total cost of the berth project was likely to be around Yuan1bn ($1.5bn). He expected preparatory work to be completed this year and work on construction to start in 2011.
Vale is expected to be the main beneficiary under the plan. The ore miner ordered 12 400,000 dwt very large ore carriers at Jiangsu Rongsheng Heavy Industry for $1.6bn in 2008 in an effort to boost its iron ore shipments to China.
China is the biggest overseas market for Vale. The company exported 35.6m tonnes of iron ore to China in the first half last year, up 42% year-on-year from 25.4m tonnes in 2008.
Shipments on 400,000-tonne carriers, compared with 200,000-tonne ships, saved an average of $3-$5 per tonne per day on freight, he added.
Representatives of Zhanjiang Port could not be reached by Lloyd"s List for comment.