Seoul: South Korean shipper HMM Co. announced that it has secured a 4.7 trillion-won (US$3.5 billion) long-term shipping contract with Brazilian mining giant Vale. Under the agreement, HMM will transport bulk cargo for Vale using eight newly built vessels, which are set to be delivered sequentially starting in 2030 and will operate under 25-year contracts.

According to Yonhap News Agency, this latest contract represents HMM's third major deal with Vale, following two 10-year shipping contracts signed last year in May and September, which were worth a combined 1.1 trillion won. The newly commissioned vessels are 210,000-ton Newcastlemax bulk carriers equipped with the world's first tri-fuel propulsion engines, capable of running on methanol, ethanol, and conventional fuel oil.

The ships are designed to be LNG- and ammonia-ready, allowing future conversion to liquefied natural gas or ammonia as fuel options. They will also incorporate environmentally friendly technologies, such as rotor sails that harness wind power, aiding propulsion to improve fuel efficiency and reduce carbon emissions.

This deal is part of HMM's strategy to strengthen its bulk shipping business and diversify its portfolio beyond its core container shipping operations. The company's bulk carrier fleet expanded to 61 vessels in the first half of this year from 44 at the end of March last year.