China COSCO Bulk Shipping (Group) Co., Ltd., a subsidiary of China COSCO, signed a framework agreement with Vale (International) Co., Ltd. in Beijing on 12 September 2014.
Under the agreement, Vale shall provide a 25-year contract of ore transportation to China COSCO Bulk Shipping. Accordingly, China COSCO Bulk Shipping shall build 10 large ore carriers for Vale and acquire 4 large ore carriers currently owned and operated by Vale.
It is an important initiative for China COSCO Bulk Shipping to further optimize its client base and cargo structure as well as to enhance the proportion of basic cargo sources. The transaction is expected to facilitate China COSCO's long-term and sustainable development.