K-Line concludes long-term iron ore transport agreement

Kawasaki Kisen Kaisha, Ltd. (K-Line) recently concluded a long-term iron ore transport agreement with the Anshan Iron and Steel Group (based in Anshan City, Liaoning Province, China) to transport Australian iron ore using capesize bulk carriers.

Agreement Outline:
The approximately 10-year agreement is to transport iron ore from Australia to China using 170,000-ton bulk carriers, starting in October 2009. The annual transport volume is approximately 1.5 million tons.

The Anshan Iron and Steel Group joined together with the Benxi Iron and Steel Group, also based in Liaoning Province, to form the Anben Group. Anshan Iron and Steel is a leading iron and steel maker in China, with crude steel production of 23.4 million tons in 2008.

It is a core company in northeastern China under the Chinese government iron and steel industry policies. Last year, it constructed an integrated seaside blast furnace plant in Yingkou on the shores of Liaodong Bay that processes mainly imported iron ore.

Under this agreement, K-Line will play a role in providing stable long-term transport services for the Anshan Iron and Steel Group.

A spokesperson for K-Line said that the company views an increase of business entries into the growing Chinese market as one of the most important target for its business expansion plan. Following the agreement the company aims for more opportunities to be involved in the iron ore transport business in China.<Korea Shipping Gazette>