Philippines to link Brazilian mining giant with Chinese market

Manila (CNS) -- Mining giant Vale of Brazil will build an iron ore transshipment center at Subic Bay on the west coast of the Philippines to cope with China's recently declared restrictions on large bulk-cargo and oil container ships entering the country's ports, revealed the local Philippine administration on Wednesday.

Cargo will be distributed to smaller sized vessels after arrival at the center.

Last year, Vale spent US$ 2.4 billion on 35 jumbo freighters, most of which are sailing between China and Brazil. The new strategic transshipment center has economic advantages and will raise the competitiveness of Vale against its Australian counterparts.

The center is likely to generate about 25 million pesos (about US$ 580,000) in yearly income for the Philippine economy, claimed the authority.