Wednesday, July 19, 2017

French and Saudi Freight Firms Form JV for New GCC Logistics Operation

Bahri and Bollore Partner Up
Shipping News Feature
SAUDI ARABIA – The National Shipping Company of Saudi Arabia (Bahri) has signed an agreement with the French transport and logistics firm Group Bolloré to establish a new logistics joint venture to serve Saudi Arabia and the wider region. The agreement marks another step of Bahri's and Bolloré Logistics' expansion into the fast-growing logistics and supply chain management market within the Gulf Cooperation Council (GCC).

To be headquartered in Riyadh, the joint venture will operate under the name ‘Bahri Bolloré Logistics’ with Bahri as the majority stakeholder with a 60 share in the joint venture and Bolloré owning the remaining 40%. This union will be poised to offer end-to-end logistics and supply chain solutions to both large companies based across the region and international companies doing business with the Kingdom. Ali Al-Harbi, Acting CEO of Bahri, said:

“We are proud to partner with a well-known and respected global player like Bolloré Logistics, which brings more than three decades of expertise in the logistics industry. Bolloré’s global capabilities in logistics and supply chain management, coupled with our regional knowledge and depth of expertise in transportation and logistics services, will help unlock synergies and operational efficiencies powerful enough to propel the new venture toward becoming a logistics partner of choice for companies around the region.

“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 toward achieving an important objective of Saudi Arabia’s Vision 2030 – namely, enabling a thriving economy by building and leveraging a unique global logistical hub.”

The logistics market in the GCC is worth SAR 176.3 billion (US$47 billion), with Saudi Arabia, with a market size of SAR 71.3 billion (US$19 billion), representing 43% of the combined regional market, according to a report by research consultancy Solidiance. One of the fastest growing countries in the logistics and warehousing industry globally, Saudi Arabia is positioned as the primary entry point for goods in the GCC market, and the country's logistics industry has been growing at an average rate of around 6% per year. Philippe Lortal, CEO of Bolloré Logistics Middle East – South Asia, said:

“It is a great honour for us to partner with Bahri, a leading and well recognised transport and logistics player in Saudi Arabia. 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.

“This collaboration will intensify Bolloré Logistics’ development in the Middle East, which is definitely a key region for our organisation, mainly because of its strategic location at the crossroads of Asia, Africa, and Europe. The strength of our partnership with Bahri will allow us to guarantee a high quality of service to our Saudi Arabian and global customers.”