SBMA bids to make Subic Bay Asia's ore transshipment hub

The Subic Bay Metropolitan Authority (SBMA) and Vale International, SA are aiming to make this premier Freeport into an Asian transshipment hub for iron ore.

In a project approved by the SBMA Board of Directors, Brazillian company Vale International proposed to carry out an iron ore transshipment operation from its Valemax mother vessel to smaller daughter vessels, or feeders, which are either Panamax or Capesize types, by using a purposely-designed floating terminal to be located in Subic Bay.

Lawyer Redentor Tuazon, SBMA deputy administrator for operations, said that the proposed transshipment hub will be the biggest in the world in terms of operations.

“The mother vessels that they use have a gross register tonnage (GRT) of 400,000 GRT,” Tuazon explained. “These are ultra large carriers that they call Valemax. They are the biggest in their class, the biggest in the world in operations, and they will use Subic Bay Freeport as the hub in Asia,” he said.

Tuazon also said that the Vale group decided to build a hub in Subic because it will be cost-effective to do so.

“The rationale for the whole project is economies of scale. You have big ships that will transfer the iron ore to two or three smaller vessels, so that the smaller ports in China will be able to accommodate them,” he said.

Tuazon also stressed that the project gives importance to safety standards, and that a hazard and operability (HAZOP) study has been conducted to ensure safety.

He also noted that all of the vessels to be used are insured and are covered with protection and indemnity insurance.

Moreover, Tuazon said that this project will be highly beneficial to Subic, adding that the Freeport will earn about R100 million from the project annually.

“Of course, Subic will be on the map in terms of floating terminal operations, considering the reputation of Vale as one of the biggest mining firms in the world,” he added.

Tuazon also said that the Vale group is looking into the possibility of building an onshore site.

“They are exploring if they can have a facility onshore where they can store minerals like coal—that is still being explored if it’s feasible. But the important thing is that this is Vale Mining, one of the biggest mining companies in the world and that they decided to come here,” he said. (MB.com.ph - By JONAS REYES With a report from Franco G. Regala)

"Vale Brasil", is the first of seven ore carriers ordered by Vale from the South Korean shipyard in an investment totaling $748 million. Vale said it has also ordered 12 very large ore carriers, each with capacity of 400,000 tons, from the Rongsheng Shipbuilding and Heavy Industries shipyard in China. These vessels, being built at the Chinese shipyard, represent a total investment of US$1.6 billion.

The Valemax vessels (Classification: Ore Carrier) are 360 metres long, breadth is 65 metres and from keel to mast they measure 56 meters

The Valemax vessels have seven cargo holds and each can carry almost as much iron ore as a small Panamax carrier

With a deadweight tonnage of 400,000 tons, a fully laden Valemax vessel is carrying as much iron ore as around 11,150 trucks

With a draft of 23 meters, Valemax is limited only to a few deepwater ports in Brazil, Europe and China.

Brazil’s Vale goes to Subic

by Cecille Garcia - manilastandardtoday.com

SUBIC BAY FREEPORT—Vale International S.A., a unit of Vale S.A., the world’s largest iron ore producer and the second-largest mining company, plans to operate a transshipment hub here to serve the Asia-Pacific region.

The Subic Bay Metropolitan Authority said its board approved an investment agreement for Vale to operate an ore transshipment business in the free port. Vale plans to unload ore from its Valemax mother vessel to smaller daughter vessels, or feeders, which are either Panamax or Capesize types, through a purposely-designed floating terminal in Subic Bay.

SBMA deputy administrator for operations Redentor Tuazon said the proposed transshipment hub would be the biggest in the world in terms of capacity.

“The mother vessels that they use have a gross register tonnage of 400,000 GRT,” Tuazon said. “These are ultra large carriers that they call Valemax. They are the biggest in their class, the biggest in the world in operations, and they will use Subic Bay Freeport as the hub in Asia,” he said.

Tuazon said the Vale group found the Subic operations cheap.

“The rationale for the whole project is economies of scale. You have big ships that will transfer the iron ore to two or three smaller vessels, so that the smaller ports in China will be able to accommodate them,” he said.

Tuazon said the project would give the free port annual earnings of about P100 million.

“Subic will be on the map in terms of floating terminal operations, considering the reputation of Vale as one of the biggest mining firms in the world,” he said.

Tuazon also said the Vale group was also looking into the possibility of building an onshore site.

“They are exploring if they can have a facility onshore where they can store minerals like coal—that is still being explored if it’s feasible. But the important thing is that this is Vale Mining, one of the biggest mining companies in the world and that they decided to come here,” he said.

SBMA seaport manager Perfecto Pascual said the Vale group would soon begin operations to distribute iron ore to northeast Asian countries, including China, the biggest user in the world.

“The Vale group will start operations in October and that will be a great revenue earner for us since they will be bringing in big ships and the floating storage ship that will be permanently stationed here in Subic,” Pascual said.

He added the SBMA could expect a large volume of ships arriving in the last quarter of the year.