Posted on August 21, 2024
RIYADH: Saudi Arabia’s National Shipping Co. has signed a $1 billion deal to purchase nine very large crude carriers as part of its fleet modernization efforts.
The agreement was made with Greece-based Capital Maritime and Trading Corp., with delivery of the vessels expected in multiple batches before the end of the first quarter of next year, the firm, also known as Bahri, said in a Tadawul statement.
This deal aligns with Bahri’s role in supporting Saudi Arabia’s Vision 2030, which aims to establish the Kingdom as a key logistics hub across three continents.
“The transaction will modernize Bahri’s fleet, particularly its Oil Transport business unit which currently operates a fleet of 40 VLCCs, and enable it to streamline the process of phasing out older vessels in its fleet going forward,” said the shipping company in the statement.
It added: “The transaction will improve the fleet competitiveness of Bahri Oil Transport business unit as the modern, eco-scrubber, and cost-efficient VLCCs will boost both its revenues and profitability.”
Bahri further noted that the nine VLCCs were built in South Korea and have an average age of 5.9 years. These carriers are also equipped with high energy efficiency and low emission features to minimize environmental impact.
Earlier this month, the company signed a memorandum of understanding with Saudi Arabian Mining Co. to explore business integration opportunities, focusing on localizing maritime industries and strengthening supply chains.
In July, Bahri also partnered with the Saudi Logistics Academy to enhance employment opportunities and skills development in the maritime logistics sector.
Under the two-year agreement, SLA will train and qualify Saudi candidates in various specializations for placement across the shipping firm’s business units.
Bahri has a fleet of 92 vessels, including 36 chemical and product tankers, six multipurpose vessels, and 11 dry bulk carriers, with more vessels on order.
The company, which operates one of the world’s largest fleets of double-hulled VLCC with a capacity of 2.2 million barrels each, is also the exclusive provider of this service for Saudi Aramco’s CIF sales.
