Bahri and Hadeed Pursue Strategic Shipping Partnership
Saudi Arabia’s national shipping group, Bahri, is engaging in discussions with steel manufacturer Hadeed to enhance cooperation in maritime transport. This collaboration aims to align shipping capacities with the growing industrial demands within the kingdom. The companies recently signed a letter of intent in Riyadh, paving the way for Bahri to explore potential solutions for Hadeed’s iron ore shipping needs.
Exploring New Shipping Solutions
The letter of intent marks a significant step towards a closer partnership between Bahri and Hadeed. Under this non-binding agreement, both companies will investigate how Bahri’s fleet and technical capabilities can specifically cater to Hadeed’s shipping requirements for iron ore. This collaboration not only aims to improve logistics efficiency within the industrial sector but also sets the stage for the development of specialized vessels tailored to meet Hadeed’s operational and technical specifications in Saudi Arabia.
Bahri’s Chief Executive, Ahmed Al-Subaey, emphasized that this initiative is a crucial part of enhancing the maritime transport ecosystem and supply chains in the country. Meanwhile, Hadeed’s CEO, Abdulqader Al-Mubarak, highlighted that this cooperation is expected to secure specialized shipping solutions that would ultimately enhance the logistics efficiency of the industrial sector. This partnership is in line with broader initiatives to deepen industrial integration and localize value chains, effectively linking the shipping and steel sectors more closely.
Currently, Bahri’s dry bulk division operates a fleet of 13 bulk carriers, which are engaged in long-term contracts with the Agricultural Development Company (ARASCO). The company is also making strides in modernizing its fleet, having ordered six geared ultramax bulk carriers from International Maritime Industries last year. These vessels, with a total price tag of approximately $203 million, are scheduled for delivery between 2028 and 2029, demonstrating Bahri’s commitment to enhancing its shipping capabilities.
Bahri Chemicals inks first COA with Luberef to boost Saudi base oil exports
Leadership Engagement at Global Summit
Adding to the significance of this partnership, Mohammed Bin Battal, president of Bahri Dry Bulk, is set to participate in the prestigious Geneva Dry summit, an event recognized as the world’s leading commodities shipping summit. Scheduled for April 28 and 29, this summit will feature a distinguished lineup of industry leaders and experts, emphasizing Bahri’s active role in shaping the future of maritime transport.
This strategic collaboration between Bahri and Hadeed is poised to play a crucial role in advancing the shipping industry in Saudi Arabia, ensuring that local industrial demands are met efficiently and effectively.
