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K Line secures three long term iron ore contracts

Shanghai: The Chinese subsidiary of Kawasaki Kisen Kaisha ("K" Line China) has secured three long term contracts for the transport of iron ore from leading steel makers Baosteel, Wuhan Iron and Steel and the Shougang Group.

The contract with Baosteel, for a period of 18 years, will see "K" Line initially transport 500,000 tons of ore per year from Brazil to China, which will increase to 1.2m tons annually after the first three years.

The other two contracts, both for a period of five years, will see the Line transport 500,000 tons of ore per year from Brazilian and Australian sources for each company.

Although the prices of the contracts remain undisclosed, analysts estimate a high value for the contracts as dry bulk freight rates are currently surging due to the recent congestion at Australian ports.  [12/07/07]

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