Bahri Dry Bulk Company (BDB), a subsidiary of Bahri, has signed an agreement with the Dutch firm Koninklijke Bunge B.V. (Bunge) aimed at establishing a joint venture to charter vessels for dry bulk shipping.
Under the deal, the parties would hire ships for importing and exporting of dry bulk commodities into, from and within certain countries in the Middle East.
To be established in Dubai, UAE under the name Bunge Bahri Dry Bulk Ltd., the joint venture firm plans to ship over 5 million metric tons in year one, ramping up volume over time to double-digit figures.
BDB and Bunge will own 60 and 40% of the JV, respectively. Financial terms of the agreements were not disclosed.
The JV, which will be financed pro rata by BDB and Bunge, will charter and commercially operate Supramax and/or Panamax dry bulk vessels initially from the fleet currently owned or managed by BDB and subsequently from third parties.
The parties expect to establish the JV by the second quarter of 2017, while the financial impact should be seen starting from the fourth quarter of the year.