COSCO cautious about purchase of carrier fleet

BO'AO, Hainan - China Ocean Shipping (Group) Company (COSCO), the country's largest State-owned shipping conglomerate, is unlikely to buy or operate a giant bulk-carrier fleet currently owned by the Brazilian miner Vale SA, said Ma Zehua, president of COSCO Group.

"We are still studying the safety and profitability issues in managing the giant ships," Ma told China Daily in an exclusive interview.

In a bid to stabilize freight costs and iron ore prices, Rio de Janeiro-based Vale invested $2.3 billion in 19 of the 400,000 ton megabulk carriers and will control another 16 under long-term contracts, according to the company. Scheduled for delivery by the end of 2013, it will be the world's largest iron ore fleet.