Bahri orders 10 chemical tankers from HMD in $410 million deal

Bahri, the world’s largest owner and operator of very large crude oil carriers, has signed an agreement with Hyundai Mipo Dockyard, a member of Hyundai Heavy Industries (HHI) Group, to build ten 49,999-dwt Medium Range (MR) chemical tankers.

Image courtesy: Bahri

Valued at $ 410 million (SAR 1.537 billion), the agreement was signed at a virtual ceremony, between Abdullah Aldubaikhi, CEO of Bahri, and Seung-Yong Park, Chief Operating Officer and Senior Executive Vice President of HHI.

The vessel purchase agreement comes as part of Bahri’s ongoing strategy to expand its marine capabilities and renew its fleet.

The ships are scheduled to start being delivered during the first quarter of 2022.

Bahri said the chemical tankers will be built to the highest environmental, fuel-efficiency, and safety standards.

“The new agreement with HMD for the building of 10 high-spec chemical tankers represents a major step forward in our next phase of growth and further strengthens our leading position in the global maritime industry. With the newbuilds entering our fleet over the next two years, we will be further equipped to cater to the varying needs of our customers around the world,” Abdullah Aldubaikhi, CEO of Bahri, said.

The order is being announced at a rather sluggish period for shipbuilders, as owners refrain from investments in new ships due to COVID-19 cost-cutting efforts and uncertainty about what type of ship and engine to order to meet future environmental standards.

“We are extremely pleased that this project has come to fruition, built upon Bahri’s continued confidence and trust in HHI Group’s capabilities,” Seung-Yong Park, Chief Operating Officer and Senior Executive Vice President of HHI, said.

HMD said that the latest order will bring the tally of various types of vessels the company built for Bahri to 61.

“We are committed to ensuring that our long-standing partner receives high-quality and eco-friendly vessels this time as well, and sincerely hope this project further strengthens our concrete relationship with one of the most renowned shipping companies,” Park added.

In May 2020, Bahri took delivery of its new dry-bulk carrier Sara, which is the first ship received as part of the agreement signed between Bahri Dry Bulk and HMD in August 2017 to build four new dry-bulk carriers by 2020.

In addition to the three other bulk carriers that are under construction, the company is also expecting a new VLCC, which is currently being built by International Maritime Industries (IMI) and will be delivered by October 2021, lifting Bahri’s fleet of multi-purpose vessels to 101.

Bahri owns and operates a total of 87 vessels, including 41 VLCCs, 34 chemical and product tankers, 6 multipurpose ro-ro vessels, and 6 dry-bulk carriers, in addition to four other carriers on order.