K Line signs 20-year CVC contract with Glovis

Tokyo: Kawasaki Kisen Kaisha (K Line) has announced the conclusion of a 20-year consecutive voyage charter (CVC) contract with Glovis Co., a logistics arm of South Korea's Hyundai Motor Company Group, for a dedicated very large ore carrier (VLOC) to transport iron ore. The contract is due to take effect in 2012. A 250,000-dwt ship will be assigned to annually haul about 3 million tons of West Australian iron ore to South Korea on behalf of Hyundai Steel Co.

Glovis said in January that it has been awarded a contract by Hyundai Steel to transport steelmaking raw materials over a period of 20 years. Besides the one from K Line, it has reportedly decided to charter four dedicated carriers to move iron ore and coking call -- two from Hyundai Merchant Marine and one each from STX Pan Ocean and Hanjin Shipping.

Hyundai Motor Group is pushing a plan to build a blast furnace with Hyundai Steel taking the lead. The furnace is set to come on stream in 2010. When it becomes fully operational in 2012, the company is expected to require 10 dedicated vessels to transport its steelmaking materials.  [04/03/08]