Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi- Bahri finalizing merger agreement with Vela  Join our daily free Newsletter

MENAFN - Arab News - 12/06/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - Arab News) The national shipping company of saudi arabia (bahri) the saudi flag carrier shipping line is finalizing its merger deal with vela's fleet and operations. vela is a subsidiary of the world's largest producer and exporter of oil saudi arabian oil company (aramco).

the two national companies signed a landmark merger agreement in 2012 to make the joint fleet the fourth largest company in the world in terms of ownership of 77 giant ships vlccs industry.

at a press conference bahri ceo saleh al-jasser said after completion of the merger deal estimated to be worth sr12 billion they will have the biggest fleet in the kingdom.

'we will have a long-term accord with sr5 billion. we are going to pay them part of it in the form of shares and the balance in cash (sr3200 million)" he added.

he said the deal includes shifting the whole fleet of vela consisting of 14 vlccs used for floating storage 5 refined petroleum product tankers all crew of vela's carriers employees and part of its business systems so that they can be integrated within bahri's structure.

'this process is the result of a long-term vision and the hard work and commitment of all parties in addition to our leadership and image in the industry" al-jasser said describing it as valuable contribution to the national economy.

he added: "the deal by itself can be a real example of cooperation between national companies in the kingdom. bahri will become the exclusive maritime carrer of crude oil sold by saudi aramco on the basis of delivery to the client by vllcs."

'bahri is one of the biggest shipping companies in the world and biggest fleet-owner (17 vllcs) in the middle east. it occupies a preeminent position among its industry peers at national regional and international levels in all sectors of its business" al-jasser noted.

"we also own the fleet of 24 tankers the fourth in the world in terms of chemical shipments under the national chemical carries (ncc) with saudi basic industries corporation (sabic) partnership" he added.

on general cargo (gc) the official disclosed that sr1500 million has been invested in the company which operates six gc vessels covering north america the middle east the mediterranean and india.

the partnership of this size gives the two national companies a greater ability to compete in the world markets for maritime transport and to achieve further reduction in operating and maintenance expenses. he said that the vela was able to increase the saudi employees on board to 20 percent of their work force.

they will work under a long-term shipping contract according to the agreed terms and conditions. bahri enjoys protection when freight rates fall below the minimum agreed limit. should freight rates increase above a certain agreed limit (the compensation limit) bahri in turn will compensate saudi aramco for the amounts that might have already been paid to bahri when freight rates were below the minimum.


Arab News

  MENA News Headlines
 Nov 25 2015 - Saudi Smart Boat innovation honored in Copenhagen 2 RiyadhSaudi Press Agency
(MENAFN - Saudi Press Agency) Al-Shamakhi went on to say that he also provided his smart boat with special submerging telecommunication means attached to the boat's draft using sound waves to ...

 Nov 25 2015 - Saudi- Custodian of Two Holy Mosques receives Speakers of GCC Shura Representatives and National CouncilsSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh Safar 13 1437 November 25 2015 SPA -- The Custodian of Two Holy Mosques King Salman bin Abdulaziz Al Saud received at Al-Yamamah palace in Riyadh today the ...

 Nov 25 2015 - Kuwaiti Crown Prince receives GCC Ministers of Commerce and IndustrySaudi Press Agency
(MENAFN - Saudi Press Agency) Kuwait 13 Safar 1437 AH November 25 2015 SPA -- Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah the Crown Prince of Kuwait received here today the Ministers of Commerce and ...

 Nov 25 2015 - Saudi- Custodian of the Two Holy Mosques receives Executive President and Founder of World Economic ForumSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh 13 Safar 1437 AH November 25 2015 SPA -- The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud received at Al-Yamamah Palace here today the ...

 Nov 25 2015 - Crown Prince heads Saudi delegation to GCC Interior Ministers meetingSaudi Press Agency
(MENAFN - Saudi Press Agency) Doha afar 13 1437November 25 2015SPA -- Crown Prince Mohammed bin Naif bin Abdulaziz Al Saud Deputy Premier and Minister of Interior arrived here today to head the ...

 Nov 25 2015 - Speakers of GCC Shura Representatives and National Councils meet in Riyadh 2 RiyadhSaudi Press Agency
(MENAFN - Saudi Press Agency) Addressing the meeting the Speaker of Shura Council Sheikh Dr. Abdullah bin Mohammed bin Ibrahim Al Al-Sheikh welcomed the Speakers of Shura Representatives National and ...

 Nov 25 2015 - Saudi- Dr. Abdullah Al Rabiah receives Swiss ambassadorSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh Safar 13 1437 November 25 2015 SPA -- Dr. Abdullah bin Abdulaziz Al-Rabi'ah Advisor at the Royal Court and General Supervisor for Riyadh-based King Salman ...

 Nov 25 2015 - Saudi- National Guard Minister receives French AmbassadorSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh Safar 13 1437 November 25 2015 SPA -- Prince Miteb bin Abdullah bin Abdulaziz Minister of National Guard received here today the ambassador of France to the ...

 Nov 25 2015 - Germany plans to send 650 troops to MaliSaudi Press Agency
(MENAFN - Saudi Press Agency) Berlin Safar 13 1437 November 25 2015 SPA -- The German government plans to send up to 650 troops to Mali to help with the peacekeeping mission in the West African ...

 Nov 25 2015 - Turkey- G20 Communiqu: " The fight against terrorism is a major priority "The Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Following the two-day summit in Antalya Turkey G-20 leaders released a communiqué calling for greater coordination and information to counter terrorist ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help