Annual Report 2018
Bahri understands that successful partnerships are often the key to realizing its ambitions. To that end, BahriBolloré Logistics was established as a strategic partnership between
Bahri and the Bolloré Group, one of the largest groups for goods clearance and logistics in the world, with Bahri owning a 60-percent stake and Bolloré owning the remaining 40 percent.
The joint venture provides global integrated logistics and supply management solutions to local and international companies working in Saudi Arabia.
Future Aspirations While the international economy is still influenced by trade volatility, Bahri Logistics works to leverage on • Utilization of the latest digital technology, especially in the field of transportation, enabling a deeper participation in third-party logistics activities that are deeply competitive. • Engagement with the government and key stakeholders in ongoing strategies to grow the Saudi economy in line with the Vision 2030, and the enormous potential offered by increasing activity along regular shipping lines to serve the infrastructure and dry bulk transportation sectors. • Business activity was impacted by volatile business conditions internationally, the geopolitical climate and increased slowdown of key projects. Nevertheless, key initiatives from our client relations team helped maintain client satisfaction and retention of our market share. • Shipping revenues were severely impacted, and ship fuel supply prices increased 47 percent in 2018 compared to 2017.
• Ship usage rate has been and continues to depend on the resolution of international trade disputes that can affect the volume of cargo, especially in the dry bulk and vehicles sectors. • Unexpected congestion at ports impacted our delivery dates • The shipping industry saw the
entry of three key maritime consortia, which increased competition.
its strength in current trade routes by focusing on client relations and managing its main accounts through: • Bahri’s growth will contribute to increased activity along regular shipping lines and lead to more private projects being set up. It will also help the transportation sector avoid revenue fluctuations in the long-term. • Implementation of a long-term plan for trade with Africa, Asia and Europe. • Bahri Logistics works on integrating all activities and benefiting from BahriBolloré Logistics’ expertise to provide customers with a full set of logistical solutions that meet their strategic objectives
worldwide. • Our main transformation drivers include deeper market analysis, adoption of risk mitigation plans and focusing on customers. • It is expected that capital expenditure in Saudi Arabia will grow over the next five years across the heavy industries sector, including machinery and equipment, with an expected total growth of 6 percent. Our key markets are also expected to grow by 4.5 percent on an annual basis, especially after the shipping industry’s global slowdown in 2018.
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