Saudi Arabia’s national shipping group Bahri is in talks with steelmaker Hadeed over closer cooperation on maritime transport, as the two companies look at ways to align shipping capacity with domestic industrial demand.
The discussions are framed by a letter of intent signed in Riyadh, under which Bahri and Hadeed will explore how Bahri’s fleet and technical capabilities could be used to meet Hadeed’s iron ore shipping requirements. The non-binding agreement also opens the door to joint opportunities, including the potential development of vessels tailored to Hadeed’s operational and technical needs within the Kingdom.
Bahri chief executive Ahmed Al-Subaey said the move supports efforts to strengthen Saudi Arabia’s maritime transport ecosystem and supply chains, while Hadeed CEO Abdulqader Al-Mubarak said the cooperation would help secure specialised shipping solutions and improve logistics efficiency for the industrial sector.
The proposed collaboration fits with broader efforts to deepen industrial integration and localise value chains, linking the Kingdom’s shipping and steel sectors more closely, Bahri said in a release.
Bahri’s dry bulk arm currently operates 13 bulk carriers, with the fleet employed on long-term contracts with ARASCO. The owner has also been investing in modern tonnage, ordering six geared ultramax bulkers at International Maritime Industries last year. The 62,823-dwt vessels, priced at about $203m in total, are due for delivery between 2028 and 2029.
The strategy behind that expansion is likely to be a talking point later this year, with Mohammed Bin Battal, president of Bahri Dry Bulk, set to join a high-calibre line-up of panellists at Geneva Dry, the commodities shipping summit taking place on April 28 and 29, where fleet renewal, industrial cargo flows and long-term demand are expected to dominate the agenda.
