According to the NDRC official, China which buys around two thirds of seaborne iron ore cargoes to feed the world largest steel industry will add 390 million tonnes of large scale iron ore port capacity and build an extra 440 deepwater berths by 2015, Reuters reports. Vale, the world’s largest iron ore producer is spending billions of dollars to build an unprecedented fleet of very large ore carriers to transport the steel making ingredient to China and other major consumers.
An official with the National Development and Reform Commission said, Chinese ports are not yet ready to receive Vale mega iron ore carriers due to a few “small issues” in handling the world largest dry bulk vessels.
Mr Luo Ping head of the transportation planning division at the NDRC’s Institution of Comprehensive Transportation said “Chinese ports are not entirely ready for accepting Vale’s carriers due to some facilities and technical issues.”
He said that among the issues still unresolved is how the VLOCs will be safely guided into the ports. Vale can also submit applications for each mega ship to local maritime authorities who will then decide on whether the ports can receive them or not.
Vale plans to operate as many as 35 VLOCs before the end of 2013, as it ramps up iron ore production to 469 million tonnes by 2015 from 308 million last year. Meanwhile, China Commerce Minister plans to lead an investment delegation to Europe next year in hopes that the crisis roiling the continent will open up some plum assets for acquisition.
China has been reluctant to publicly commit to buying additional European bonds, despite European pleas for help in shoring up finances there, but could be much more interested in getting hard assets for its cash.
Mr Chen Deming told a gathering of Chinese firms with overseas investments that “Next year, we will continue to send a delegation for promoting trade and investment to the European countries.”
He said that “Some European countries are facing a debt crisis and hope to convert their assets to cash and would like foreign capital to acquire their enterprises. We will be closely watching and pushing forward the progress.”
His comments are in keeping with an editorial in the Financial Times this weekend by Mr Lou Jiwei the head of China Investment Corp who wrote that China was keen to make equity investments in Western infrastructure especially in Britain.
Mr Chen warned that China may fight back if other countries use trade protectionism against it. Chinese officials repeatedly emphasize the overseas deals that have fallen through because of political opposition although far more Chinese purchases have cleared with few problems.
China largest state owned shipping firm COSCO has already made a major investment into Greece’s historic Piraeus port as part of Greek divestment plans.