Brazil's mining Company Vale do Rio Doce (CVRD) announced Wednesday that it had signed a freight contract with Norway's Bergesen Worldwide Ltd (B.W. Bulk) to develop an exclusive Brazil-China shuttle service.

The 25-year contract features the construction of the four largest iron ore carriers in the world, each with a capacity to carry 388,000 tonnes of ore. The first carrier will be delivered by 2011.

In 1986, CVRD and B.W. Bulk put into service the Berge Stahl, which is currently the largest ore carrier in the world with a capacity of 364,000 deadweight tonnes.

In a statement, CVRD said, "These initiatives focus on the development of a dedicated shuttle service to carry iron ore from Brazil to China."

The carriers will make a great contribution to reducing the volatility of shipping costs to China, according to CVRD.

In addition, CVRD announced that it had signed a 20-year contract with Japan's Nippon Yusen Kaisha (NYK), involving the construction of a new generation ore carrier, with a capacity of 300,000 tonnes.

Source: Xinhua