The National Shipping Company of Saudi Arabia (Bahri) has taken a significant step towards modernizing its fleet by acquiring nine Very Large Crude Carriers (VLCCs) from Capital Maritime and Trading Corporation in a $1 billion deal finalized on August 19, 2024. This strategic move is part of Bahri’s efforts to enhance its position in the global VLCC market by replacing older vessels, improving competitiveness, and boosting revenue and profitability. The newly acquired VLCCs, known for their cost efficiency and eco-friendly features, will contribute to Bahri’s existing fleet of 40 VLCCs, with an average age of 5.9 years and high energy efficiency.
Most of the VLCCs acquired were built in South Korea and incorporate low-emission technologies to reduce environmental impact, showcasing Bahri’s commitment to sustainable shipping practices. With an average deadweight tonnage of approximately 311,500, these modern vessels are expected to be delivered to Bahri in multiple batches by the end of the first quarter of 2025. The acquisition will be funded through a combination of bank loans and internal funds, with an initial payment of 10% upon contract signing and the remaining 90% upon delivery.
By expanding its fleet with these advanced vessels, Bahri aims to strengthen its presence in the competitive VLCC market and capitalize on the benefits of modern, eco-scrubber technology for more efficient and environmentally friendly operations. This acquisition marks a significant milestone in Bahri’s fleet modernization strategy and underscores its commitment to excellence and sustainability in maritime transportation.
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