Subic to host floating transshipment center

VALE Rio Doce, the world’s biggest iron ore miner, will start transshipment operations in the Philippines’ Subic Freeport in October.

Under an agreement with the Subic Bay Metropolitan Authority (SBMA), the Vale Group will set up a Floating Transshipment Center that will handle ore shipments from Brazil using the Vale Max ship, which is bigger than post-panamax vessels.

Feeders will then call Subic to pick up iron ore for further international distribution, including to China.

“We are really upbeat about our prospects with the Vale Group of Brazil as we expect it will boost cargo traffic at the Freeport once commercial operations start,” SBMA administrator Armand Arreza said in a recent media roundtable discussion at his Subic office.

Arreza said volume is expected to further surge when Greek carrier Tiger Lines starts calling Subic. The shipping line was originally set to start operations last July.

Arreza noted Tiger Lines is ironing out a few issues before signing an agreement with the Freeport. He declined to elaborate on the issues.

Tiger Lines owns, manages, and operates a fleet of ships consisting of one very large crude carrier, two Suezmaxes, eight product tankers, and nine small product tankers. It plans to bolster its line with tankers, modern Suezmaxes or Aframaxes, dry cargo ships, and container ships.

Meanwhile, SBMA is also reviving its aviation sector and is negotiating with Tiger Airways to fly out of Subic beginning next month. In addition, a thrice-a-week service to Macau is eyed by Spirit of Manila.