OREANDA-NEWS. An innovative agreement establishing sister-port relationship between Vale's Ponta da Madeira Port Terminal in Brazil and the Port of Qingdao in China was signed, which paves the way for increasing iron ore trading volumes between Brazil and the Port of Qingdao together with information exchanges and studies of common interest and mutual benefit.

Under the agreement, Ponta da Madeira Port Terminal and the Port of Qingdao will further strengthen their cooperation to exchange information, best practices and studies in relation to trade vitalization and promotion of shipping routes between Brazil and China. This includes examining improvement opportunities in logistics and transportation services for increasing of iron ore volumes; cooperative port planning and development, port operation and management, procedure optimization and productivity improvement; use and promotion of low-carbon products and scientific and technological achievements. These low-carbon projects and green initiatives to improve logistics methods and processes, as well as exchanges on energy savings and emission reduction efforts, highlight the commitment to environmental sustainability of Vale and the Qingdao Port Group.

Mr. Luiz Meriz, Iron Ore Marketing Director of Vale, signed the agreement together with Mr. Cheng Xinnong, President of Qingdao Port Group.

Located in the northeast state of Maranhão in Brazil, Ponta da Madeira is capable of accommodating five ships at the same time. It is mainly used to export iron ore, and also handles manganese ore, copper concentrate and pig iron produced by Vale, as well as third parties' pig iron and soybeans. In 2013, Ponta da Madeira was responsible for the shipment of 112 million tons, of which 105.6 million tons of iron ore.

Port of Qingdao is located on the east coast in North China. It is an important hub for international trade in the West Pacific and one of the world's largest ports with comprehensive functions. In 2013, Port of Qingdao handled 450 million tons of cargo and its container volume was 15.52 million TEU, both ranking world's No. 7. Annually handling over 100 million tons of inbound iron ore, Port of Qingdao is an important discharging port and distribution center for iron ore.