The MoU is a non-binding renewable six-month agreement between the two parties that paves the way for a joint venture.
“The cooperation lays the foundation for creating a joint Egyptian shareholding company to provide industry-leading maritime transportation services in the Egyptian market,” Bahri said. “Under the terms of the MoU, the two parties will discuss the potential of owning, leasing, hiring, and operating ships to transport general goods, including dry bulk, chemicals, oil, petroleum products, and liquefied gas, to meet the demands of the local market.”
The agreement was signed by Eng. Mohammed Bin Battal, President of Bahri Dry Bulk and Eng. Jamil Al Sayyed Abul Khair, Board Member of the SCA.
“Our agreement with Bahri falls in line with our mission to maintain and enhance the Suez Canal for the benefit of operators and regional markets. We look forward to working in tandem with industry leaders to deliver effective, sustainable solutions that benefit the Suez Canal and the people it serves,” said SCA Chairman, Admiral Osama Rabie.
“The Suez Canal is positioned as a pivotal waterway that has allowed for the seamless transport of consumer goods and commodities from Asia and the Middle East to Europe. Our agreement with the Suez Canal Authority underlines Bahri’s commitment to collaboration in order to deliver industry-leading maritime transport solutions,” said Eng. Ahmed Alsubaey, Bahri CEO.
The Neom and Line gigaprojects in Saudi Arabia are located little more than 60 km from Egyptian territory and a Suez Canal based shipping company could be mutually beneficial to the build-out of the massive schemes.
When Saudi King Salman visited Egypt only a year after his accession in 2016, he oversaw the establishment of the Saudi-Egyptian Fund for Investment with joint capital contributions of $16bn. Included were an MoU for the establishment of an economic free zone in the Sinai Peninsula.
The agreements also established a $2.2bn 2,250-megawatt electricity plant in the Sinai as well as a $300m, six-square-kilometer industrial zone around the Suez Canal.
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