Vale to take to the podium at Shanghai shipping conference

Market watchers can look forward to having some light shed on the continuing Vale saga direct from the source. The company's director for shipping and distribution, Gurinder Singh, will address the participants of the upcoming TradeWinds Shipping China conference in what promises to be a frank update from the mining giant about the status quo, their plans for the future and developments around their regional transshipment hubs. Mr. Singh will field questions from the floor in what is sure to be a lively debate on the topic of the blurring lines between cargo and vessel ownership.

Vale, which made headlines recently with its plans to build 35 Valemaxes to lower its transportation costs of exporting iron ore to China, is still struggling to gain government approval to call at Chinese ports. The China Shipowners’ Association has gone on record to criticise the large vessels as running counter to Chinese shipowners’ interests as well as posing a safety threat – the majority of ports in China are currently unable to cope with their extraordinary size.

Since then, various accounts have surfaced including news that Chinese ports are going ahead with expansion plans though there is still no official word from Beijing and Vale’s confidence that they will “receive approval very soon”. It is also unclear if Chinese shipowners are themsleves planning to build such vessels and what impact this will have on the government's decision. 

Rongsheng Heavy Industries, the Chinese shipyard responsible for building up to 11 Valemaxes for Vale, has already delivered two of these to the mining giant. It intends to deliver up to 10 more of these vessels to their respective buyers by the end of this year. 

Conference Director, Banu Kannu, commenting on Vale’s involvement, said “This issue has received worldwide coverage; both in trade as well as mainstream media, which indicates that the effect of these vessels will be felt far beyond the bounds of the shipping sector. We are looking forward to Mr. Singh’s participation and to providing a platform for frank exchange".

Other related key topics to be discussed at the conference include the current demand and supply scenario for the dry bulk sector, which has traditionally sustained the majority of the China-borne merchant fleet. The panel discussion will feature Wang Chun Lin, Executive Director of Pacific Basin, Tim Huxley, CEO of Wah Kwong Maritime Holdings and Sadan Kaptanoglu, Owner of Kaptanoglu Shipping Group.

Addressing the theme of “Will the Dragon deliver?”, the TradeWinds Shipping China conference, in its 8th edition, will take place from 22 – 23 May 2012 at the Kerry Hotel in Pudong, Shanghai.