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Bahri and Bunge join forces to form Middle East dry bulk business

Bahri Dry Bulk Company (BDB), a subsidiary of the Bahri Group, and Koninklijke Bunge have formed a joint venture to establish an ocean freight supplier for dry bulk import and export flows in the Middle East.

James Henderson, Former correspondent

February 22, 2017

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The partnership, which will operate under the name Bunge Bahri Dry Bulk Ltd., will provide exclusive freight transportation services to regional and other international customers.

The company plans to ship over 5m metric tons in year one, ramping up volume over time to double-digit figures. BDB and Bunge will own 60/40% of the jv respectively, and it will be registered and based in Dubai.

“This jv is one of BDB's strategic initiatives to reduce complexity for our customers along the value chain,” said Ibrahim Al-Omar, ceo, Bahri

“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.

“Their global presence in commodity flows and knowledge of the freight market, coupled with our maritime expertise and strategic position in the region, creates a powerful alliance to meet growing demand for freight services within the Middle East.”

Brian Thomsen, managing director, Bunge Global Agribusiness and ceo, Bunge Product Lines, 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 jv will charter and commercially operate supramax and/or panamax, and possibly other suitably sized dry bulk vessels, initially from the fleet currently owned or managed by BDB and subsequently from third parties.

BDB is itself a joint venture between Bahri and Arabian Agricultural Services Companyf founded in 2010, and has a fleet of five 81,555 dwt bulkers according to Bahri's website.

Financial terms of the agreements were not disclosed.

Read more about:

dry bulk shippingBahri

About the Author

James Henderson

Former correspondent

James Henderson was formerly a freelance correspondent for Seatrade Maritime News.

 

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