Rio de Janeiro: Brazil's mining giant Vale is selling 10 VLOCs for US$600m to Turkey’s Polaris Shipping.
The Brazilian company said that the transaction would improve cash flow while still maintaining its maritime ore shipping capacity. The ships will be chartered back to Vale.
“In addition to unlocking capital, the transaction preserves Vale's capacity of maritime transportation of iron ore, since the vessels will be available but without the ownership and operational risks,” Vale said in a statement.
“This transaction is part of our continuous effort to optimize the asset portfolio, improving capital allocation and further strengthening of the balance sheet.”
“At $600m Vale is taking a very big loss on these ships, losing up to 50% on the prices paid just four years ago,” one broker told SinoShip News.
Vale’s mammoth VLOC fleet build up has faltered as the Chinese have moved to make calls along the Chinese coastline impossible. [03/09/12]