This has frustrated the miner's attempts to reduce freight costs in order to compete with Australian-based rivals such as BHP Billiton and Rio Tinto, located closer to China. Chinese ship owners have strongly opposed access for Vale's mega ships amid concerns they could worsen a shipping glut and steal market share. "Our transport department has every interest in discussing and resolving this matter, including options such as setting up a partnership to transship the iron ore and thus work together to lower freight costs," Ambassador Li Jinzhang told foreign reporters at a conference in Brasilia. Transshipment involves moving the iron ore from the Valemax ships on to smaller boats which could then dock at Chinese ports. Vale is currently developing a transhipment center in Malaysia and already has a system in operation in the Philippines.