Annual Report 2017
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Bahri Dry Bulk Sector 4 Strategic Business Units 3
Establishment of Bahri Dry Bulk
costs and accrue higher revenues in 2017 compared to 2016 due to its increased market share. The opportunity to acquire an even larger market share by concluding agreements with government entities and international companies is currently being studied. As part of its business strategy, Bahri Dry Bulk targets all international markets that have dry bulk related businesses, starting with the local market in the Kingdom to Gulf nations, African countries such as Egypt and Morocco and Asian countries including China, India and Indonesia.
Bahri Dry Bulk was established in 2010 under a joint venture agreement between Bahri and the Arabian Agricultural Services Company (ARASCO) with the mandate to acquire, own, charter and operate a fleet of dry bulk carriers. This joint venture paved the way for Bahri to diversify its dry bulk transportation services, which account for 23 percent of cargo imported to Saudi Arabia. With its offices spread across the Kingdom and abroad in Dubai and Egypt, Bahri Dry Bulk is the only national operator of dry bulk transportation in the Kingdom. It • Bahri Dry Bulk worked towards furthering its fleet capabilities by adding four new vessels designed according to the latest international technical specifications. They will be delivered by 2020 under an agreement signed with HHI. • Launched an initiative in 2016 that aimed to secure a fresh market share in the region by attracting new customers and increasing the volume of bulk transported to 5 million tons – a 25 percent volume increase compared to last year.
is focused on establishing high standards of customer service, acquiring state-of-the-art ships designed in line with international standards and providing a team with high levels of expertise. The dry bulk sector in 2017 has experienced a state of balance in terms of supply and demand in addition to an improved daily rate for ship chartering. The market embarked on a restructuring that will be completed by 2020 and will ensure higher stability and revenue potential. Bahri Dry Bulk owns a high- specification and state-of-the-art fleet that was able to reduce operational • Concluded a joint-venture agreement with Dutch firm Koninklijke Bunge B.V. (Bunge), with Bahri owning a 60 percent stake and the remaining 40 percent owned by Bunge. The agreement will lead to the launch of the unprecedented joint venture BahriBunge Dry Bulk Ltd. with US$35 million of capital investment. • Built an integrated team of experts drawn from the business and operational fields. • Signed an agreement with Bahri Big Data to identify future opportunities through market forecasting and improving operations.
The dry bulk industry has witnessed a state of balance between supply and demand in 2017, in addition to an improved daily rate for ship chartering.
We improved the quality of the Company’s services by working according to regulatory procedures and new operations. Updated technical systems
2010 Bahri Dry Bulk has been established under a joint agreement between Bahri and the Arabian Agricultural Services Company (ARASCO).
1 Bahri Dry Bulk is the only national company for dry bulk transportation in the Kingdom.
34 of the largest companies around the world are included in our customer base.
Key Achievements in 2017
• Implemented an updated technical system to improve the quality of the Company’s services. • Implemented stringent regulatory procedures and new processes. • Established representative offices around the world. • Developed a customer base that includes 34 of the largest companies around the world and is still growing.
2020 Addition of four new vessels designed in line with the latest international specifications to Bahri Dry Bulk’s fleet.
5 A new market share target led to an increased transported cargo volume of 5 million tons Million Tons
Bahri – Bunge Handles commercial management of dry bulk carriers and serves dry bulk customers in transporting cargo around the world to and from the region.
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