General Cargo Transportation Sector
Current Navigation Routes General Cargo transportation is deemed to be one of the Company’s strongest navigational activities as it contributes to maintaining a well-established footprint for the Company in several markets where significant sectors depend on it. These include the transportation of huge government development projects, tending to the demands of the divisions of the Armed Forces as well as importing and exporting cargo for Kingdom of Saudi Arabia. Cargo is transported through regular voyages from ports on the Eastern Coast of the United States of America and Canada to the Indian sub- continent through Italy’s Livorno port on the Mediterranean Sea, Jeddah Islamic Port on the Red Sea, King Abdulaziz Port in Dammam and Jebel Ali Port in Dubai. The Company operates to other ports on the basis of a complete voyage under shipping agreements to achieve the Company’s strategic objectives. Freight Forwarding Services using Third Party Vessels The General Cargo Transportation sector provides freight forwarding services for transporting cargo to all worldwide ports through air, sea and land using third party vessels and other transportation means, allowing this sector to provide integrated logistic services to its clients. Transportation of water desalination equipment, locomotives, rail wagons, military equipment, and the government subsidies provided by Saudi Arabian Government are some of the key projects undertaken by this sector. Container Terminal Services The Company runs a terminal for container storage and maintenance at Jeddah Islamic Port, which is considered as one of the most significant ports in the Middle East. The terminal focuses on providing exceptional customer service, fast and efficient handling
of containers to and from the port and the reduction of stevedoring costs related to imports and exports. In 2013, the terminal was restructured and the provision of storage services to containers was expanded in conjunction with container storage contracts for other shipping providers being awarded. The terminal was equipped with modern automatic handling equipment to increase its operational capacity. A feasibility study commenced on the provision of integrated services, including internal transportation, supervision of documents and customs clearance to recognize the way in which customs clearance services are advantageous to the terminal. • The Company, through the General Cargo Transportation Sector seeks to acquire shares in the following freight contracts involving transportation of equipment of mega industrial projects for the coming period. The 3-year contract for the Ministry of Defense (MOD) to transport military equipment was awarded to the Company in consideration of SAR 230 million. Throughout the previous contract period, the Company provided distinguished services to the Ministry of Defense; thus, the said contract was extended, for a period of five years until 2019 for a total of SAR 383 million. Under the new contract, Bahri will continue to act as the official provider of a full range of sea, air and land freight to the Divisions of the Armed Forces at the Ministry of Defense. • Four retired general cargo vessels were sold for scrap, and replaced with new ships, making a net gain of SAR 75.5 million from the sale of the vessels. The General Cargo Transportation Sector seeks to expand the client base, through attracting new clients on the local, regional and global levels.
In 2013, the Company successfully completed the renewal of its fleet operating in general cargo transportation, as the four old vessels serving for the last thirty years were sold, and four new general cargo vessels with DWT of 26,000 each were delivered in 2013. The new vessels were named Bahri Abha, Bahri Hofuf, Bahri Tabuk and Bahri Jazan. Another two general cargo vessels will be delivered in 2014. These vessels were built by South Korea’s Hyundai Mipo as the Company seeked to improve the services provided through fleet development of multipurpose vessels with high standards of technology. These vessels can transport various types of cargo and are equipped to load and unload specialized project cargo and equipment. The vessels are equipped with heavy-lift cranes with a total capacity of 240 tons, increasing cargo lifting capabilities and providing highly effective fuel saving characteristics. Expansion of General Cargo and Roll-on/ Roll-off Transport Operations After the delivery of the new vessels in 2013, the Company sought to enhance the operational activities of this sector by implementing its marketing plans to explore new markets to expand client base and acquire shares in the highly-profitable general cargo shipping market. • Unscheduled voyages were organized from ports in Jeddah / Dubai / Sohar / Muscat to ports in North Africa to serve inter-trading. • The Company was awarded shipping contracts from construction companies and suppliers in KSA, which involved shipping cargo of energy enterprises, equipment of way paving, air conditioners, industrial equipment and generators, equipment for construction of large projects and steam boilers for power companies from the United States to the Saudi Arabian ports.
Powered by FlippingBook