Bahri Annual Report-2011

The National Shipping Company of Saudi Arabia

4/5

Concluded a contract for building (6) General Cargo (ROCON) vessels equipped with cranes, capable of loading and discharging (360) intermodal shipping containers (TEUs); in addition, loading goods and other break bulk project equipment that are placed inside the hull of the vessel which consists of four decks dedicated to the carriage of bulk goods and cars.

I would also like to thank all the shareholders for showing their support and confidence in the Company, my colleague members of the Board, Executive Management team and all the employees of Bahri and its affiliates to further improve and develop the company.

expected to be delivered during 2012 and (1) specialized carrier is also expected to be delivered in 2013. The Board of Directors has agreed to adopt a mechanism of linking bonuses, salary increases and benefits of the employees completely to their performance and efficiencies. The completion of the administrative and legal formalities of company’s new brand, which is expected to be launched during the second quarter of 2012. A service contract has been signed with the Ministry of Defense (MOD) for an amount of SAR 230 million for three years. According to this contract, the Company will be an official carrier of the Armed Forces for the Ministry of Defense in all sectors; it will cover air, sea and land logistic services. Further, there is an opportunity that the company can also be assigned to transport additional shipments beside the current scope of work of this contract, resulting in an increase of expected returns from this contract.

The technical specifications to build the Dry Bulk vessels are finalized; negotiations are in progress to select an appropriate shipyard. The operational efficiency of the crude oil vessels’ has been improved by reducing their sailing speed which helped to reduce the fuel consumption. The administrative and legal formalities regarding the transfer and registration of Mideast Ship Management Company Ltd. from Bermuda to Dubai have been finalized. These achievements were a result of the concerted efforts by the Board of Directors, Executive Management and the employees of Bahri and its affiliates. In conclusion, I would like to extend my gratitude and appreciation to the Government of the Custodian of the Two Holy Mosques and King Abdullah bin Abdul Aziz for their constant support.

We look forward to achieve all our objectives for the current year, God willing.

Abdullah Sulaiman Al Rubaian Chairman

www.bahri.sa

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