Valemax shipload of Brazilian iron ore reaches port of Luoyu

A Valemax bulk carrier loaded with 398,000 tonnes of iron ore shipped by Brazilian miner Vale SA has arrived at the southeastern Chinese port of Luoyu, the China News Service (CNS) reports.

The Chinese state-run news agency says the arrival of the ship on Wednesday showed that Luoyu is now the sixth-biggest port in China that can handle Valemax ships, which can carry 400,000 tonnes of bulk cargo.

Vale chose Luoyu as its southeastern Chinese distribution centre because of the handling capacity and the bonded cargo service there, the report says.

It quotes an unidentified source in the business as saying using Valemax ships can cut costs by over 20 per cent.

Once another three berths there are built, Luoyu will be able to handle 10 million tonnes or iron ore a year, CNS says.