Ningbo Zhoushan Port Co Ltd will establish a joint venture company with Brazil-based Vale International SA, a subsidiary of Vale SA, the largest producer of iron ore and nickel in the world, according to local media reports on Oct 12.

The company will be in charge of the construction and operation of the Third West Zone project at Shulanghu Port in Zhoushan, East China's Zhejiang province.

The Third West Zone project will cost around 4.3 billion yuan ($624 million) and include a storage yard and two loading berths with an annual processing capacity of 20 million metric tons.

In 2015, Vale launched a new product – Brazilian Blended Fines, or BRBF. It is currently produced at the Malaysia Logistics Center and at 17 Chinese ports, including Shulanghu Port.

By participating in the project, Vale expects to increase its annual processing capacity at Shulanghu Port to 40 million tons in a bid to lower its supply chain costs.

Ningbo Zhoushan Port Co Ltd is the manager of the Ningbo-Zhoushan Port, which has ranked first globally for the past 11 years in terms of cargo throughput and owns two berths capable of accommodating 400,000 tons of ore carriers simultaneously.

The company is mainly engaged in handling containers, iron ore, crude oil, coals, liquefied oil, and grain.

Ningbo Zhoushan Port Co Ltd plans to establish a joint venture company with Brazil-based Vale International SA, a subsidiary of Vale SA, the largest producer of iron ore and nickel in the world. [Photo/WeChat account: china-zjftz]