Saudi Shipper Bahri to Double Fleet in Expansion

Saudi Arabia’s National Shipping Company, known as Bahri, is poised for significant growth as it aims to nearly double its fleet and enhance its role in the nation’s trade landscape. Chief Executive Officer Ahmed Al-Subaey announced plans to capture a larger share of business from the country’s oil, chemicals, and industrial sectors. This expansion aligns with Saudi Arabia’s broader strategy to bolster its economy by promoting domestic industries and encouraging local procurement.

Strategic Expansion Plans

Bahri is embarking on an ambitious expansion initiative, with a focus on increasing its involvement in the oil trade. Currently, the company handles only 15% of Saudi Aramco’s global oil trade, indicating substantial room for growth. Al-Subaey emphasized that Bahri is at a pivotal moment, ready to seize new opportunities, particularly in the lucrative shipping routes between Saudi ports on the Persian Gulf and the Red Sea. This strategic move is part of Saudi Arabia’s larger economic vision, which includes diversifying its industries and fostering local businesses.

In a significant development, Bahri has placed an order for Saudi Arabia’s first domestically built bulk cargo carriers from International Maritime Industries (IMI). This $205 million deal includes six bulk carriers, with four confirmed and an option for two additional vessels. Deliveries are expected to be completed by the end of the decade. Furthermore, Bahri plans to acquire 20 very large crude carriers (VLCCs) from IMI, with deliveries scheduled between 2029 and 2030. This expansion will position Bahri as a leading operator of VLCCs globally, enhancing its competitive edge in the maritime industry.

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Long-Term Growth Vision

Bahri’s expansion strategy is not limited to the immediate acquisition of new vessels. The company has outlined a long-term agreement to acquire up to 52 new vessels from IMI over the next decade. This ambitious plan will see Bahri’s fleet grow from its current 108 ships to over 90 additional vessels, nearly doubling its operational capacity. IMI, which operates a state-of-the-art shipyard at Ras Al Khair on the Persian Gulf coast, is a joint venture involving Bahri, Aramco, and international partners such as Lamprell Energy Ltd. and Hyundai Heavy Industries Co.

As Bahri moves forward with these initiatives, it is set to play a crucial role in Saudi Arabia’s economic transformation, reinforcing the importance of national champions in the global market. The company’s growth not only reflects its ambitions but also aligns with the Kingdom’s vision for a diversified and robust economy.