Bahri says dry bulk vessels represent 10% of topline

Mohammed Bin Battal, Chairman of Bahri Dry Bulk Co., a subsidiary of National Shipping Company of Saudi Arabia (Bahri), said that the new dry bulk vessels, for which the purchase contract was signed yesterday with International Marine Industries Co. (IMI), will increase Bahri's dry bulk fleet by approximately 50%.

In an interview with Asharq News, Bin Battal clarified that Bahri owns 13 Ultramax and Kamsar Max dry bulk vessels, adding that dry bulk vessels account for 10% of Bahri's revenue.

The key impact of the new vessels lies in localizing supply chains in the Kingdom, as their impact on revenues will be limited, given Bahri's reliance on long- and short-term charters and voyage contracts, in addition to its 109 owned vessels, according to the top official.

He also said that Ultramax vessels have easy access to port quays and to ports with limited capacity, as they have self-loading and unloading equipment, which increases their profit margins.

Bulk cargoes serve the grain sector, such as wheat, other crops, and fertilizers. This sector plays a key role in supporting the Kingdom's food security, and the company intends to further bolster this role. It aims to export the Kingdom's fertilizer products and some refinery products, such as sulfur, and import wheat, corn, soybeans, and barley from South America, Australia, the US, the Black Sea region, and elsewhere, according to the official.

Bin Battal also stated that Bahri does not have any intention currently to increase its 19.9% ​​stake in IMI, as the company is growing naturally and there is no need to change the stake.

According to data available with Argaam, Bahri signed, on Oct. 1, a SAR 762 million purchase agreement with IMI to build and deliver six crane-equipped Ultramax dry bulk vessels.

Bahri Dry Bulk Co. is a joint venture, which is 60% owned by Bahri and 40% by Arabian Agricultural Services Co. (ARASCO).