Riyadh - Mubasher: The National Shipping Company of Saudi Arabia (Bahri) announced that its 60% owned Bahri Dry Bulk (BDB) signed a joint venture with the Netherlands' Koninklijke Bunge B.V.
Under to the agreement, Bahri's unit and Bunge intend to establish a joint venture in Dubai, with investments amount to SAR 131.25 million ($35 million) financed by shareholders, according to a bourse filing on Wednesday.
The new company, which will be 60% owned by BDB and 40% by Bunge, will be engaged in chartering vessels for the purpose of importing and exporting dry bulk commodities into, from, and within certain countries in the Middle East.
While the initial term of the joint venture agreement is five years, the parties expect the duration of their cooperation to be substantially longer, the statement said.
Both firms expect to complete the establishment of the joint venture by the second quarter of 2017 and the financial impact to appear in the fourth quarter.
