Bahri: Middle East’s largest owner and operator of chemical tankers

Bahri: Middle East’s largest owner and operator of chemical tankers

Bahri inks $410m MR tanker deal

Scheduled for delivery from the first quarter of 2022, the 10 chemical tankers will be built to the highest environmental, fuel-efficiency, and safety standards

September 2020

Bahri, a global leader in logistics and transportation based in Saudi Arabia, has signed a SR1.537 billion ($410 million) agreement with Hyundai Mipo Dockyard (HMD) for 10 chemical tanker new buildings.

The Saudi shipowner has ordered ten 49,999 dwt MR chemical tankers from HMD, part of the Hyundai Heavy Industries (HHI) group, which owns one of the largest state-of-the-art shipyards in the world.

The tankers are scheduled for delivery from the first quarter of 2022 and the order is valued at $410m in total.

The vessel purchase agreement comes as part of Bahri’s ongoing endeavours aimed at expanding its marine capabilities and renewing its fleet, said the company in a statement.

It was signed recently at a virtual ceremony, between Bahri CEO Abdullah Aldubaikhi and HHI Chief Operating Officer and Senior Executive Vice President Seung-Yong Park in the presence of key executives from both the companies.

Set for delivery beginning from the first quarter of 2022, the 10 chemical tankers will be built to the highest environmental, fuel-efficiency, and safety standards in line with the company’s commitment to operating responsibly.

One of the world’s largest owners of VLCCs and the Middle East’s largest owner and operator of chemical tankers, Bahri operates a total of 87 vessels, including 41 VLCCs, 34 chemical and product tankers, 6 multipurpose ro-ro vessels, and 6 dry-bulk carriers, in addition to four other carriers on order.

Commenting on the deal, Aldubaikhi said: “As a company committed to contributing to Saudi Arabia’s maritime goals set out in Vision 2030, Bahri has always remained keen on the continual enhancement of its enormous fleet of state-of-the-art multi-purpose vessels.”

“The new agreement with HMD for the building of 10 high-spec chemical tankers represents a major step forward in our next phase of growth and further strengthens our leading position in the global maritime industry. With the newbuilds entering our fleet over the next two years, we will be further equipped to cater to the varying needs of our customers around the world,” he stated.

Park said HHI was extremely pleased that this project had come to fruition, built upon Bahri’s continued confidence and trust in HHI Group’s capabilities.

“The new agreement is a compelling testimony to HMD’s superior value proposition and its advanced technology-enabled offerings. These 10 MR tankers will bring the tally of various types of vessels that we built for Bahri to 61,” explained Park.

“We are committed to ensuring that our long-standing partner receives high-quality and eco-friendly vessels this time as well, and sincerely hope this project further strengthens our concrete relationship with one of the most renowned shipping companies,” he added.

In May, Bahri took delivery of its new dry-bulk carrier ‘Sara,’ which is the first ship received as part of the agreement signed between Bahri Dry Bulk and HMD in August 2017 to build four new dry-bulk carriers by 2020.

 In addition to the three other bulk carriers that are under construction, the company is also expecting a new VLCC, which is currently being built by International Maritime Industries (IMI). With its delivery in October 2021, Bahri’s fleet of multi-purpose vessels will rise to 101.


Partners with Tabadul

In another development, Bahri signed an agreement with digital solutions company Tabadul for the implementation of an electronic payment solution.

Fasah Pay, one of a collection of electronic solutions offered on Tabadul’s Fasah platform, enables the business sector within the logistics industry to create and raise invoices for customers that can be paid via a Sadad number.

The agreement stipulates the provision of a special control panel for Bahri users to access a series of online features through the Fasah platform, including access to all previous and upcoming transactions; the ability to download detailed or combined invoices for specific customers; electronic payment of bills raised and charged to customers; flexible updating and cancellation of invoices; and retrieval of customer information or other data using approved reference details.

The integration will facilitate and accelerate billing and payment processes, as well as manage and control payments to ensure the continuity of import and export activities in an efficient and effective manner.

Aldubaikhi said: “We are pleased to conclude this agreement with Tabadul, which will contribute to establishing fruitful business relationships based on mutual trust with all of our customers and partners. The agreement is an important step for us, especially in light of Saudi Arabia’s movement towards digital transformation as outlined in Saudi Vision 2030.”

“Through this integration with the Fasah Pay service, we can replace all incoming and outgoing paper-based financial transactions with electronic versions. We also look forward to the other benefits the system will bring, including improving the transparency of transactions, accelerating procedures for beneficiaries, and reducing the risks involved with cash transactions by providing a safe payment system,” he added.

Alshamsi said: “The use of digital tools plays a prominent role in achieving sustainability, as many digital transfer efforts aim to raise efficiency levels while providing reliability and flexibility. This is what we seek through the Fasah Pay electronic payment portal, which will accelerate and facilitate financial trade through billing and payment processes. Through this service, we look forward to bringing added value to our partner, Bahri.”  

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