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 carrier 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
 Dec 20 2014 - Etihad has no further A380 orders, Boeing 787 delayedMENAFN
(MENAFN) Etihad Airways is not interested in ordering any more Airbus A380s, while the launch of its first Boeing 787-9 Dreamliner into service has been delayed, Gulf News reported.The Dreamliner ...

 Dec 20 2014 - Saudi rail expansion contributes to domestic tourismMENAFN
(MENAFN) Saudi Railways Organization (SRO) President has lauded the efforts of Saudi Commission for Tourism and Antiquities (SCTA) in developing the tourism sector and preserving national heritage, ...

 Dec 20 2014 - Tunisia, Germany sign USD55.21m loan agreementMENAFN
(MENAFN) Tunisia and Germany have signed a loan agreement worth USD55.21 million for the modernization of more than 300 educational institutions in the different regions of the country, QNA ...

 Dec 20 2014 - Qatar- Magnificent Mirza wins stage 2The Peninsula
(MENAFN - The Peninsula) Overnight leader Azzedine Lagab yesterday retained his position at the Tour of Zubarah where defending champion Yusif Mirza of the UAE produced a late burst to win stage ...

 Dec 20 2014 - Aishwarya to make comeback with JazbaaKhaleej Times
(MENAFN - Khaleej Times) Jazbaa is a contemporary thriller set in modern-day Mumbai. Los Angeles - Former Miss World and popular Bollywood actress Aishwarya Rai Bachchan will make her comeback with ...

 Dec 20 2014 - UAE- Srikanth looks to change strategy for next two tiesKhaleej Times
(MENAFN - Khaleej Times) Indian star Kidambi Srikanth set to play Sugiarto and Jorgensen in Dubai event.Kidambi Srikanth faltered in the first set but made a strong comeback against Kento Momoto on ...

 Dec 20 2014 - UAE- Aussie rookie makes an early impactKhaleej Times
(MENAFN - Khaleej Times) Cannon makes statement for Mena Golf Tour with a steady performance at the Dubai Open. Chris Cannon was playing for the first time in an asian tour event Dubai — An ...

 Dec 20 2014 - UAE- Chen and Saina cruiseKhaleej Times
(MENAFN - Khaleej Times) South Koreas Bae shocks Chinese No.Saina Nehwal of India in action against Sung Ji Hyun of South Korea at the BWF Destination Dubai World Superseries Finals on Thursday. ...

 Dec 20 2014 - UAE- Teary-eyed for 132 dreams lostKhaleej Times
(MENAFN - Khaleej Times) Pak ambassador condemns Taleban for using Islams cover to justify massacre Abu Dhabi: The Pakistani community in Abu Dhabi gathered at the embassy on Thursday morning to ...

 Dec 20 2014 - IT teacher steals students iPad sells it onlineKhaleej Times
(MENAFN - Khaleej Times) The teachers theft was allegedly busted after she posted an advertisement on a popular website to sell the iPad. Dubai: An Information Technology (IT) teacher is standing ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

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

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

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