The Bahri and Suez Canal Authority is examining the establishment of a shipping company

The National Shipping Company of Saudi Arabia, Bahri and the Suez Canal Authority (SCA) have signed a Memorandum of Understanding (MoU) with an aim to establish Egyptian maritime transport services company.

The MoU is a non-binding, renewable six-month agreement between the two parties that paves the way for a joint venture.

“The collaboration lays the groundwork for the establishment of an Egyptian joint venture company to provide industry-leading maritime transportation services in the Egyptian market,” said Bahri. “Under the terms of the MOU, the two parties will discuss the potential of owning, leasing, chartering and operating vessels for the transportation of general cargo, including dry bulk, chemicals, oil, petroleum products and liquefied petroleum gas to meet the requirements 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, SCA board member.

“Our agreement with Bahri is consistent with our mission to preserve and enhance the Suez Canal for the benefit of operators and regional markets. We look forward to working 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 central waterway that has enabled the seamless movement of consumer goods and commodities from Asia and the Middle East to Europe. Our agreement with the Suez Canal Authority underscores Bahri’s commitment to work together to provide industry-leading maritime solutions,” said Eng. Ahmed Alsubaey, CEO of Bahri.

The Neom and Line gigaprojects in Saudi Arabia are just over 60 km from Egyptian territory, and a Suez Canal-based shipping company could be mutually beneficial in expanding the massive projects.

When Saudi King Salman visited Egypt just a year after its accession in 2016, he oversaw the establishment of the Saudi-Egyptian Fund for Investment with $16 billion in combined capital. Included was a MoU for the establishment of an Economic Free Zone in the Sinai Peninsula.

The agreements also included a $2.2 billion 2,250-megawatt power plant in Sinai and a $300 million six-square-kilometer industrial estate around the Suez Canal.

Source: News Network