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Bahri Annual Report
2016 Business Units Performance & Achievements
Bahri Annual Report
2016 Business Units Performance & Achievements
Bahri outperformed the global benchmark on oil major inspections (SIRE) by 17%, in addition to the fact it has been trending downwards year over year. Furthermore, its major incidents were reduced by 57% (2016 vs. 2015) and there was no vessel rejection by any of Bahri’s customers. Moreover, Bahri received a score of ‘zero detentions’ from Port State Control (PSC), which is an internationally agreed inspection regime of foreign ships calling at national ports for 2016. This means none of Bahri’s ships were detained because of compliance failure, with any of the internationally agreed standards. On the other hand, PSC (Tokyo and Paris MOU) market detention percentage, during 2016, ranged from four to five. In addition, Bahri Ship Management carried out eighty-five safety inspections and internal audits in 2016, along with successfully migrating to ISO 9001 and 14001 to 2015 standards. To further emphasize its commitment to safety, Bahri Ship Management carried out two major emergency preparedness drills with Saudi ARAMCO, O’Brien’s and United States Coast Guard (USCG). This led to Bahri Ship Management to achieve a Tanker Management Self-Assessment (TMSA) level four (highest level) in emergency preparedness. Among Bahri ship management’s notable 2016 achievements was Bahri Oil being issued with a full- term ISO 9001:2008 management
Ship is responsible for technically and operationally managing Bahri and its subsidiary’s vessel’s safety, quality, and reliability is one of the pillars that underpins Bahri’s leading market position. The overall focus is on understanding customer requirements and its overarching commitment to ensure that all the vessels are operated safely, and efficiently and with a minimum risk to the environment. To achieve this mission, Bahri implements initiatives that set challenging safety and quality Key Performance Indicators, KPI’s, that meticulously monitors performance, toexceedor set industry standards thereby integrating innovation and technology. Through rigorous and continuous compliance audits, checks, preparatory drills and certification reviews, Bahri achieved an unparalleled position that set the benchmark for the market. outperformed industry benchmarks, which recognized Bahri as a top quartile operator for major customers such as; Saudi ARAMCO, BP, Shell, ExxonMobil and Total. Bahri also adheres to and implements a ‘continuous improvement’ doctrine. It focuses on the monitoring of the ships speed, fuel consumption, hull fouling, using intelligent monitoring systems and high performance cargo tank and hull coatings; all of which improves the vessels performance and leads to incremental operational efficiencies. management, which During 2016, Bahri’s safety and quality practice constantly
the overall business growth in terms of revenue, market share, in addition to improving customer profile acquisition. The regional presence was expanded in the United Arab Emirates and in Egypt and new joint ventures are in progress, such as establishing long-term commitments with reputed cargo charterers and importers which is expected to result in further business growth. As the national maritime carrier for Saudi Arabia, Bahri is also recognized as the leading and exclusive dry cargo carrier in Middle East. Going forward, Bahri Dry Bulk’s regional short, medium and long-term operational plans include focusing and consolidating its market presence. Moreover, Bahri Dry Bulk will continue to leverage its internal assets, which includes modern, state of the art, fuel efficient fleet, diversified business lines and regional strengths, to make a mark on global map. On the other hand, Bahri’s sustained operational efforts in balancing [TC in/out] fleet deployment voyages were marked by strict cost control measures, compliance with maritime and environmental regulations and vessel safety. The risk mitigation initiatives included benchmarking, position control, introducing best- in-class hedging future tools, all of which will be instrumental in helping capitalize on the sector’s expected consolidation and growth as market circumstances improve. The overall outlook for Bahri Dry Bulk is positive, despite the existing political uncertainty and market volatility. At the opportune moment, Bahri Dry Bulk will consider fleet expansion, through organic and inorganic growth channels and expanding its regional and global presence.
Globally, the Dry Bulk sector is driven by the demand of iron ore, coal and grains, while the local and regional markets are driven by grain and fertilizer exports. Moreover, the transportation of these commodities is affected by political and geographic instability, the fundamentals of supply response and cargo demand. In turn, these factors affect bulk cargo growth rate, shipping market volatility which in turn would influence the trade efficiencies and market balance. On the other hand, the vessel’s operating costs, particularly, fuel oil (bunker) cost, in addition to the above factors impact fleet availability and utilization, which has a direct bearing on earnings and risks. This improved business performance and growth took place despite the volatility of the global shipping market, in addition to the penetration of numerous small time operators, demand and supply imbalance as evidenced from the WTO’s announcement, which highlighted the slowdown of global economic growth on trade movement. During the 2010 – 2015, the average annual dry bulk trade registered around 5% of growth, while during the 2015 – 2020 period, it is not expected to reach the 3% mark. The year 2016 witnessed significant increase in operations, both in nature and mix of the dry bulk volumes and cargo. Regionally, Bahri’s cargo liftings exceeded 5.3 million metric tons, in comparison to 1.3 million metric tons during 2015, registering an increase of 307% in cargo liftings. In addition, there was 90% increase in the customer profile registration. Among many strategic initiatives that Bahri Dry Bulk put in place, was the introduction of the “Operator Model”, which has positively contributed to
Bahri Ship Management
Bahri Dry Bulk
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