Bahri Annual Report-2009

Management Report

Petrochemical Transportation

(15) carriers with a total capacity of approximately (660) thousand static tons, which is envisaged to rise to (31) carriers with a total capacity of up to 1.4 million tons within the coming three (3) years. Odfjell is one of the largest global companies operating in the field of shipping chemicals around the world and one of the key players in this industry. The company operates (90) carriers with a total capacity of up 2.5 million tons in international and regional trade of shipping petrochemicals and vegetable oils and refined petrochemical products, in addition to running a network of reservoirs for the storage of liquid substances in important regions around the world. Odfjell is a joint stock company headquartered in the Norwegian city of Bergen, with (20) offices run by 3700 employees around the world. This partnership will enhance the position of the National Chemical Carriers in the global markets. NCC operates three of its carriers through an international conglomerate run by Odfjell and three other carriers are chartered to the same company. NCC has a long-term charter contract of six of its carriers to Saudi Basic Industries Corporation “SABIC” in addition to one carrier chartered to Sipchem. Petrochemical transportation sector realized a total operating income of SAR 151.81 million in 2009, compared to SAR 116.09 million in 2008, which constitutes 41% of the total operating income of the company in 2009.

In 1990, NSCSA, in collaboration with the Saudi Basic Industries Corporation (SABIC), founded the National Chemical Carriers Company (NCC), with a capital of SAR 200 million and at a share of 80% and 20% respectively. The two founding companies have injected extra funds to support the expansion plans of the National Chemical Carriers with a capital currently amounting to (610) million Saudi Riyals. In line with the strategic plan of the NCC to increase the capacity of its fleet to approximately 1.3 million static tons and the number of owned vessels to (29) carriers, NCC entered into a contract with SLS SHIPBUILDING CO. for building sixteen (16) new carriers that are expected to be delivered during the period from 2010 to 2012. NCC signed a partnership agreement with the Norwegian company Odfjell in June 2009, to establish a company in Dubai on a 50-50 basis to commercial operate both companies fleet of coated vessels of 40,000 tons and above in size within one conglomerate operating in the field of shipment and trade of petrochemicals, vegetable oils and refined petrochemical products around the world with focus on the Arabian Gulf region as one of the most important regions in the production and export of petrochemicals. The new company commenced operations on the 1st of January 2010 with the commercial operation of the current fleet of both companies, consisting of


Annual Report 2009 The National Shipping Company of Saudi Arabia

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