Bahri Strengthens Saudi Shipbuilding Industry with Major IMI Orders

Bahri, the national shipping company of Saudi Arabia, has made a significant commitment to bolster the indigenous shipbuilding sector by placing substantial orders with International Maritime Industries (IMI). This initiative is part of a broader strategy to enhance local capabilities and align with Saudi Vision 2030, aiming to transform the Kingdom into a global logistics hub.

• Bahri has signed a Vessel Purchase Agreement (VPA) with IMI for the construction of very large crude carriers (VLCCs).

• The partnership aims to promote local shipbuilding and create job opportunities in Saudi Arabia.

• IMI is set to become a leading shipyard with guaranteed contracts worth $10 billion over the next decade.

In a recent announcement, Bahri confirmed its commitment to supporting IMI, a joint venture that includes major players such as Saudi Aramco and Hyundai Heavy Industries. The VPA signed between Bahri and IMI marks a pivotal step in the development of the Kingdom’s maritime industry. The agreement includes:

• Construction of VLCCs: The first order involves a 319,000 DWT Very Large Crude Carrier (VLCC), with delivery expected in 2025.

• Long-Term Collaboration: The agreement establishes a framework for ongoing business activities between Bahri, IMI, and Hyundai Heavy Industries.

The collaboration is not just about building ships; it is also focused on knowledge transfer and skill development. Abdullah Aldubaikhi, CEO of Bahri, emphasized the importance of this partnership in achieving the Kingdom’s long-term goals. Key benefits include:

• Technology Transfer: IMI will gain access to advanced shipbuilding technologies from Hyundai Heavy Industries.

• Job Creation: The initiative is expected to create numerous job opportunities for Saudi citizens, aligning with the objectives of Saudi Vision 2030.

• Skill Development: IMI employees will receive training and development to enhance their shipbuilding skills, ensuring that they meet high-quality production standards.

IMI is positioned to become the largest full-service maritime facility in the Middle East and North Africa (MENA) region. Once fully operational, the shipyard will have the capacity to:

• Manufacture: Produce four offshore rigs and over 43 vessels annually, including VLCCs.

• Service: Maintain and service more than 260 maritime products.

Bahri’s commitment to indigenous shipbuilding, through its partnership with IMI, represents a significant milestone in Saudi Arabia’s efforts to diversify its economy. By investing in local capabilities and fostering a skilled workforce, the Kingdom is taking substantial steps toward becoming a key player in the global maritime industry. This initiative not only supports economic growth but also aligns with the broader vision of transforming Saudi Arabia into a leading logistics and transportation hub.