Bolero, the secure online trading platform, has announced that five Korean bulk carriers have signed up to the system. From February 2002 they will be participating in a trading chain with Korean steel company Posco, and metals and mining giants BHP Billiton of Australia and UK-based Rio Tinto. The five Korean bulk carriers are Hyundai Merchant Marine, Hanjin Shipping, Korea Shipping, Keoyang Shipping and Pan Ocean Shipping.

This latest announcement confirms that Bolero is maintaining its focus on large-scale commodity trades. The planned trading chain will involve shipments between Australia and Korea of 25 million tons of iron ore and coal, valued at US$500 million. All contractual, settlement and fulfillment details will be processed electronically through the Bolero system.

A statement issued by Bolero points out that the participating companies are moving from test to live status. Posco and Japan's Nippon Steel - the world's two largest steel producers - announced in August last year that they were starting trials with BHP Billiton and Rio Tinto.

Following the trials, Posco released a statement saying that the company expected to see a reduction in the financial and time cost involved in certification, data management, and greater security in its business transactions. Although initially restricted to coal and iron ore, Posco expects to use Bolero to import other raw materials in the future.

For Bolero, the latest announcement is significant because this is the first time the system has been used in dry bulk shipping transactions while the move also strengthens its position in the Asia/Pacific region where many its largest live implementations are taking place.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DCPRO.