Representatives from Ningbo Zhoushan Port Co Ltd and Brazil-based Vale International SA, a subsidiary of Vale SA, sign a cooperation agreement on Nov 12 to establish a joint venture company in Zhoushan. [Photo/WeChat account: china-zjftz]

Ningbo Zhoushan Port Co Ltd established 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 a signing ceremony held in Hangzhou, capital of Zhejiang, on Nov 12.

According to the cooperation agreement, the joint 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 project will cost around 4.3 billion yuan ($624 million) and include a storage yard with a maximum capacity of 4.1 million metric tons as well as two loading berths with an annual processing capacity of 20 million tons.

It is projected to be completed in three years and, after being put into operation, increase the total annual processing capacity of iron ore at Shulanghu Port to 40 million tons.

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

Through the project, Vale expects to increase its annual processing capacity at Shulanghu Port to 40 million tons as well as lower its supply chain costs.

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

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