Vale : how to improve its competitive advantage to export Iron Ore via the Brazilian Martime Terminal of Ponta da Madeira, through the enchancement of its infrastructres and processes ?
SONAR|HES-SO
- Tavares, Erisvelton
- Depetris, Nicolas (Degree supervisor)
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2015
94 p.
Mémoire de bachelor: Haute école de gestion de Genève, 2015
English
This project aims to understand and propose improvements about the competitive advantage to export Iron Ore via the Vale’s Maritime Terminal Ponta da Madeiral (PDM) in the northeast of Brazil, through the enhancement of its infrastructures and processes. This is one of the world’s largest ports operated by Vale SA and accounts for 10% of the worlds Iron Ore cargo mevements. Vale is one of the largest mining company and one of the largest publicly traded companies in the world with market capitalization of around US$ 100 billion. It is the world’s largest producer of Iron Ore and pellets, key raw materials for steelmaking 2. Over the last 70 years, it produced more than 5 billion metric tons of Iron Ore 3. In fact, Vale in doing some multibillionaires projects to increase its Iron Ore output export through the PDM port. China is the major Iron Ore market driver, because it consumes more than 60% of the market share. In 2014, because of China’s slowdown economy, the Iron Ore prices declined around 50% of its value. The last day of 2014, the Iron Ore price was US$ 68.80 ton 4. Vale break-even costs in 2015 lies between USD$ 37/ton and US$ 41/Ton 5. Therefore, Vale needs to get competitive advantage to overcome its major’s competitors, BHP (Anglo-Australian) and Rio Tinto (British-Australian) which have lower break-even (US$ 31/Ton or 32/Ton CFR), so it can offer Iron Ore at a better price 6. We interviewed and collected data from reliable sources such as Vale Management and Operations teams in Brazil and Brazilian Maritime Government authorities. We analyzed the main issues in the PDM Port related to the export of Iron Ore, and proposed recommendations to the enhancement of its infrastructures and processes, so Vale Management can use it for decision-making. In our findings, we realized that the port had ships cracking at least twice in the port, which affected its operations during this non-operating time. Moreover, Vale multibillionaires projects will increase its Iron Ore output that will choke the port capacity to export Iron Ore since it does not have yet appropriate infrastructure for this increase in supply. In addition, in our research we perceived that the port has issues with locals because of the port enhancement projects. We recommended the use of a Cargo Plan to avoid ships cracking, the construction of another Pier and 11 stockyards, the creation of Communities Councils to deal with locals involved in Vale projects. Last, we believe that the port could use its existent infrastructure to diversify its exports, increasing its agriculture commodities exports, since Iron Ore is not a renewable commodity.
- Language
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- English
- Classification
- Economics
- Notes
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- Haute école de gestion Genève
- Economie d'entreprise
- hesso:hegge
- License
- License undefined
- Identifiers
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- RERO DOC 258579
- RERO R008357812
- Persistent URL
- https://folia.unifr.ch/global/documents/314489
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