South Korean shipping company Pan Ocean has been awarded a KRW1.98 trillion (US$1.82 billion) contract to transport iron ore for Brazilian mining giant Vale over a 27-year period.
Pan Ocean told the Korea Stock Exchange that the contract involved shipping iron ore from Brazil to China from 2020 to 2047.
The company operates eight iron ore carriers, but said it would invest KRW483 billion to secure six more very large ore carriers (VLOCs) to fulfil the contract.
They will be built by an unidentified Chinese shipbuilder for delivery between 2019 and 2021.
Pan Ocean said Vale was in the process of signing long-term contracts involving a total of 30 vessels, from seven ship companies.