Bahri eyes higher market share, new markets: CEO

Ahmed Al-Subaie, CEO of Saudi National Shipping Co. (Bahri)

The Saudi National Shipping Co. (Bahri) seeks to gain a larger market share through foraying into new markets and expanding its current geographical scope, CEO Ahmed Al-Subaie told Argaam.
 

He added that Bahri is working to modernize and increase the number of vessels, as well as focus on logistics services to achieve its strategy and diversify business. In addition, the company aims to strengthen its presence in new specialized categories, including the aviation sector, perishable products and goods, as well as oil and gas.
 

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Commenting on Q1 2024 results, the top executive said they were exceptional, as Bahri managed to overcome challenges and strong competition in the market, as it continued to post strong earnings from 2022 until the first quarter of 2024.
 

The average quarterly earnings exceeded SAR 400 million, which reflects the company's efforts to diversify its fleet, boost its market share, and enter new markets.
 

The oil transportation segment continues to provide outstanding results due to the effective fleet management, benefiting from the higher global transportation rates, the CEO said. He indicated that the higher rates were driven by several factors, including geopolitical tensions, global economic changes, and changes in global oil production policies.
 

Bahri's strategic plans include managing potential fluctuations effectively, Al-Subaie said.
 

He added that the chemical transportation segment is reaping the benefits of modernizing the fleet over the past years, as a large part of the fleet is distinguished by designs meeting the highest technical specifications and international safety standards. This, accordingly, bolstered the segment's performance from 2023 until the first quarter of 2024, and the company is working to maintain this strong performance.
 

The precise commercial and practical plans for the fleet programming resulted in wonderful results in the first quarter, including the results of chartered vessels, which constituted 20% of net income.
 

Al-Subaie went on to say that the bulk goods transportation segment is witnessing robust growth, driven by the strong demand for strategic commodities such as grains and fertilizers, which was reflected in the company’s plans to expand in this segment.
 

To achieve its fleet expansion plan, Bahri purchased two modern dry bulk carriers in 2023 to reinforce its commitment to environmental sustainability. In addition, Bahri Dry Bulk maintained a strong performance in terms of transportation in 2023, achieving a higher growth rate compared to 2022.
 

Touching on the challenges and competition in the logistics sector, the CEO said the company is working to develop and invest in this segment. Further, it is working strategically to gain a larger market share and enhance the quality of its logistical services.
 

To support this strategic direction, the company boosted its investments in the warehouse segment, and it will likely begin to reap fruits in Q4 2024.
 

Al-Subaie praised the efforts made to develop capabilities in several different segments, including logistics, aircraft engineering and maintenance, food, as well as oil and gas. He added that several contracts were signed to meet customer needs, which will be implemented in the second half of 2024.
 

Bahri also aims to enter into mutually beneficial strategic partnerships, build important new relationships, and sign major long-term contracts, which will support the company's strategic progress, the CEO concluded.