South Korean ship operator Pan Ocean has clinched a Won 1.98 trillion ($1.82 billion) deal to 

transport iron ore for Brazilian mining major Vale to China for 27 years from 2020, a company 

official said Monday. 

The  contract with Vale starts from January 1, 2020 and runs to August 31, 2047, the official 

said. 

"For  carrying  out  the  deal   with  Vale, Pan Ocean has decided to invest Won 483 billion to 

secure six very large ore carriers [VLOCs]," the official said. 

The  six  VLOCs  will  be  delivered  from  December 2019 to September 2021 from a Chinese 

shipbuilder," he said, declining to identify the Chinese shipyard. 

The investment plan was approved by the board last week, the official said. 

Pan Ocean currently operates eight iron ore carriers. 

Vale has awarded long-term freight contracts to transport iron ore to some seven shipowner-

operators including five from South Korea and two from China, according to sources. 

Among  these  are  South  Korea's  Polaris  Shipping, Korea Lines, SK Shipping and China's 

Cosco as well as China Merchants Energy Shipping Group. 

Vale's latest long-term freight contract will encompass around 30 VLOCs in the 325,000 dwt 

class, according to one shipowner-operator source.