NYK signs long-term deal with Chinese steel producer

NYK signs long-term deal with Chinese steel producer NYK Line has signed a 23-year contract with Wuhan Iron and Steel Corp. for the transport of iron ore, the first such long-term deal between the two companies.
   Under the agreement, 52 million tons of iron ore mined in western Australia will be shipped primarily to Beilun, Ningbo, in China's Zhejiang province, NYK said in a statement. Shipments will begin near the end of this year, and for the first three years of the contract, NYK will provide service by using existing bulk carriers. A 230,000-ton iron ore carrier will then go into service for the transport of the ore.
   During fiscal year 2006, WISCO produced 13.76 million tons of raw iron and steel and is China's fifth-largest producer. It plans to reach a production volume of 50 million tons by 2012, NYK said.