Saudi Arabia's Bahri Group subsidiary Bahri Dry Bulk Company (BDB) has entered a definitive agreement with the Netherlands' Koninklijke Bunge (Bunge) to establish a joint venture (JV) to support the import and export of dry bulk in Middle East.
The venture is set to operate under the name Bunge Bahri Dry Bul,and will offer freight transportation services to both regional and international customers.
Bunge Bahri Dry Bulk’s 60% stake will be owned by BDB, with the remaining 40% is to be controlled by Bunge.
The JV will seek to transport over five million metric tons of freight in year one, with plans to increase the volume in future. The venture will be registered and based in Dubai, United Arab Emirates.
Koninklijke Bunge product lines CEO Brian Thomsen said: “We expect the JV to become a carrier of choice for customers importing grains and other agricultural commodities in the Middle East, as well as for dry bulk exports outside of the region.
“The joint venture combines Bunge's expertise in providing freight services and risk management with BDB's unique knowledge of Middle Eastern customers, and their needs to address growing demand in the region.”
Bunge Bahri Dry Bulk will initially charter and commercially operate Supramax and / or Panamax dry bulk vessels, which are currently owned or managed by BDB.
Bahri CEO Ibrahim Al-Omar said: “This JV is one of BDB's strategic initiatives to reduce complexity for our customers along the value chain.
“Working with a leading global player in commodity trading brings the necessary commercial and market intelligence to dry bulk supply and demand fundamentals, and Bunge brings crucial expertise and scale to the table.”
The company’s BDB subsidiary currently provides bulk carrier shipping in Saudi Arabia, and is specialised in the transportation of grain, coal, barley and other dry bulk cargoes.