Annual Report 2017
58
59
3
Strategic Business Units
Bahri Oil 1
Backhaul voyages
NPS performance
We adopted the new ISO 9001:2015 quality standard in 2017. This transition is a significant quality management milestone for us as the new standard has a stronger focus on the customer – as was evident from our outstanding 2017 Net Promoter Score (NPS) results. Bahri Oil’s NPS survey for the year was split into
two sections, with different sets of questions addressed to customer executives and operations staff. The higher scores (see table below) show that Bahri’s success in providing high quality and cost-effective services to its customers are being acknowledged and rewarded.
The number of backhaul voyages carried out by Bahri vessels rose from 55 in 2016 to 60 in 2017. This was due to the increased utilization of Bahri vessels on the AG West route which meant greater availability of owned vessels in the backhaul market. In particular, the number of voyages serving Indian customers increased significantly, from 19 in 2016 to 26 in 2017.
This improvement in backhaul voyages had another positive impact on our overall fleet utilization because of the shorter return ballast voyage from India in comparison with Singapore or China. Bahri’s spot vessel requirement fell from 144 in 2016 to 84 in 2017, as our newly acquired VLCCs reduced spot market needs. The reduction in global oil volumes also contributed to the fall
in spot demand. Bahri negotiated three Charterg in Agreements with reputable VLCC owners and operators at agreed discounted rates.
2016 2017
Executives Operations
9.0 8.6
9.8 9.3
ABOSF
Other achievements
The APICORP Bahri Oil Shipping Fund (ABOSF) made considerable progress in 2017 in discussions with a number of local, regional and international banks to raise finances to invest in new VLCCs. The first investment fund under the agreement will be finalized in 2018, enabling us to acquire up to five VLCCs, which will be owned by the
ABOSF and managed and operated by Bahri. Bahri and the Arab Petroleum Investments Corporation (APICORP) signed the agreement to establish ABOSF in 2016.
At the annual Bahri Oil Transportation Forum held in Dubai during the Bahri Oil week in November 2017, we brought together industry leaders for a dicussion on “tanker market opportunities and challenges”. The event was a great success with a majority of the large tanker owners, operators and brokers getting together to exchange thoughts and views on our industry. Once again, the global industry recognized Bahri’s achievements in 2017 by bestowing the most prestigious Maritime Standards and Lloyds List awards. These included the Ship Owner/Operator of the Year, the Shipping Company of the Year and the Transport Company of the Year award from MEED. In coordination with the Public Transport Authority (PTA) of Saudi Arabia, Bahri raised the Saudi flag on 31 of its VLCCs and five product tankers. Bahri is committed to supporting Saudi Arabia’s drive
to strengthen its maritime fleet in partnership with the private sector, reinforcing the Kingdom’s established position in the oil industry in particular and the maritime transportation industry in general. This will contribute to the transformation of the Kingdom as the most important and largest logistics hub in the region, as envisioned in Saudi Vision 2030. The increase of the national flagged fleet will contribute to increasing the volume of bilateral maritime trade between the Kingdom and other global economies, in addition to creating a positive impact on the continued growth of the maritime transport sector in the Kingdom and the region.
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