The National Shipping Company of Saudi Arabia (Bahri) signed an agreement to establish an equally owned joint venture (JV), the National Grain Company, with the Saudi Agricultural and Livestock Investment Company (SALIC), at an estimated cost of SAR 412.5 million ($110 million).
The JV aims to build and establish a terminal for handling grains at Yanbu Commercial Port, seeking to meet the future needs of the Kingdom for major crops and cereals, the shipping major said in a statement to Tadawul.
The terminal will cover an area of 313,000 square metres and have a storage capacity of 280,000 tons. The production capacity will range between 3 and 5 million tons annually.
The project will be funded through the company's cash flow, in addition to bank financing, the statement added.
Construction is likely to start in the second half of 2021. The expected date of pilot production is H1 2022, running for a period of 3 months, with commercial production slated to begin in H2 2022.
The executing parties will be appointed in H2 2020, and details will be announced later.
Currently, Bahri is working on determining the expected financial impact of the project on its financials, but ruling out a possible material impact. However, it will announce the financial impact later if there is a substantial impact.
The project’s impact will reflect on the company's financials upon completion, the statement noted.
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