Riyadh-based Bahri forms logistics joint venture with Bolloré
Bahri, the Riyadh-based shipping carrier, forms 60:40 local joint venture company with Bolloré, one of the largest transport and logistics operators in the world
Riyadh-based shipping carrier Bahri has formed a joint venture with Bolloré — one of the largest transport and logistics operators in the world — to establish a 60:40 company between the two parties.
Headquartered in Riyadh, ‘Bahri Bolloré Logistics’, will offer end-to-end logistics services to customers in Saudi Arabia and the region.
The company will combine the benefits of Bahri’s local customer base and maritime assets with Bolloré’s global reach and expertise in transport and logistics.
The deal with Saudi state-linked carrier represents a major shake-up for the logistics segment in Saudi Arabia that will create significant opportunities for heavy commercial vehicles suppliers in the country as the new operator looks to build up its land transport fleet.
Saudi Arabia currently accounts for around $19bn, or a 43% share, of the combined $47bn logistics market across the GCC region.
“We are proud to partner with a respected global player like Bolloré Logistics, which brings more than three decades of expertise in the logistics industry,” said Ali Al-Harbi, acting CEO of Bahri.
“Bolloré’s global capabilities, coupled with our regional knowledge and expertise in transportation and logistics services, will help unlock synergies and operational efficiencies that propel the new venture toward becoming a logistics partner of choice for companies around the region.”
Saudi Arabia is also one of the fastest growing countries in the logistics and warehousing industry globally, with an average annual growth rate of around 6%, and is increasingly being positioned as the primary entry point for goods entering the GCC market.
Al-Harbi continued: “For Bahri, the foray into supply chain and logistics is a natural extension of our business, as it continues our journey from being a leader in transportation of goods port-to-port, to the delivery of goods gate-to-gate.
“We are proud that this initiative will contribute profoundly towards achieving an important objective of Saudi Arabia’s Vision 2030 – namely, enabling a thriving economy by building and leveraging a unique global logistical hub.”
Philippe Lortal, CEO of Bolloré Logistics Middle East – South Asia, added: “Being established in this country is crucial for us as Saudi Arabia stands as the most significant market in the Middle East with regard to imports and exports.
“The strength of our partnership with Bahri will allow us to guarantee a high quality of service to our Saudi Arabian and global customers.”