Saudi Arabia’s National Shipping Company, Bahri, has signed a $1 billion deal to purchase nine Very Large Crude Carriers (VLCCs). This significant agreement aligns with Saudi Arabia’s Vision 2030, aiming to establish the Kingdom as a key logistics hub across three continents.
Strategic Partnership with Greek Firm
Bahri finalized the deal with Greece-based Capital Maritime and Trading Corp. The delivery of these vessels is expected in multiple batches before the end of the first quarter of 2025. Bahri plans to finance the purchase through a combination of bank facilities and internal cash resources. The company will pay 10% of the total cost upfront, with the remaining 90% due upon delivery.
تعلن الشركة الوطنية السعودية للنقل البحري (#البحري) عن توقيع اتفاقية لشراء تسعة ناقلات نفط خام عملاقة بقيمة تقارب 3.75 مليار ريال سعودي (1 مليار دولار أمريكي)
The National Shipping Company of Saudi Arabia (#Bahri) Announces the Signing of a Purchase… pic.twitter.com/yyAZjMLWm0
— Bahri | البحري (@OneBahri) August 20, 2024
Fleet Modernization and Environmental Impact
Currently, Bahri operates 40 VLCCs, making it one of the largest fleet owners globally. The new ships, built in South Korea and averaging 5.9 years in age, feature high energy efficiency and low emission capabilities. These advanced features will help Bahri minimize its environmental impact while modernizing its fleet.
Enhancing Competitiveness and Revenue
The acquisition will enable Bahri to phase out older vessels and improve the competitiveness of its Oil Transport business unit. The company expects the new, cost-efficient VLCCs to boost both revenues and profitability. This transaction also reinforces Bahri’s commitment to supporting the Kingdom’s Vision 2030 initiative.
Expanding Capabilities and Strategic Alliances
In addition to this purchase, Bahri recently signed a memorandum of understanding with Saudi Arabian Mining Co. to explore business integration opportunities. The focus is on localizing maritime industries and strengthening supply chains. Moreover, Bahri partnered with the Saudi Logistics Academy in July to enhance employment opportunities and skills development in the maritime logistics sector.
With a fleet of 92 vessels, including 36 chemical and product tankers, six multipurpose vessels, and 11 dry bulk carriers, Bahri continues to expand its capabilities. The company also serves as the exclusive provider of VLCC services for Saudi Aramco’s CIF sales, reinforcing its critical role in the global oil transportation market.
