Saudi fertz major Ma’aden agrees logistics pact with shipping giant Bahri

LONDON (ICIS)–Leading Saudi fertilizer manufacturer Ma’aden on Thursday inked a memorandum of understanding (MoU) with logistics major Bahri to explore openings in the transportation of ammonia and phosphates.

The pair will explore cooperation across various fields, including “chartering cargo ships to transport ammonia gas, dry transport needs, and other areas”, the duo said in a statement.

Bahri owns and operates 90 vessels: 42 VLCCs (very large crude carriers), 33 chemical and product tankers, six multipurpose vessels, and nine dry-bulk carriers.

Ma’aden is major producer and exporter of crop nutrients that also include diammonium phosphate (DAP) and monoammonium phosphate (MAP), with gold, aluminium and base metals also among its product portfolio.

Commenting on the agreement, Abdullah Aldubaikhi, CEO of Bahri, said: “As a company committed to contributing to Saudi Arabia’s maritime goals set out in Saudi Vision 2030, Bahri sees this agreement with Ma’aden as an essential step towards bolstering the Kingdom’s raw materials trade.

“The strategic partnerships being forged with national companies such as Ma’aden in the next few years will prove the most fruitful for our long-term growth and stability, both regionally and internationally.”

The agreement was signed just as Ma’aden prepares to load the ammonia tanker Kortrijk at the port of Ras Al-Khair with around 25,000 tonnes for a long-term customer in Korea ‒ its inaugural voyage for the company.

The supplier recently expanded its three-strong fleet of ammonia carriers to seven vessels as it prepares to ramp up exports through the imminent launch of a 1.1m tonne/year plant in the Kingdom.

Ma’aden currently exports around 130,000 tonnes/month of the nitrogen fertilizer to destinations including India, Jordan, Taiwan, China and Korea.

Thursday’s agreement was concluded on the sidelines of the Future Minerals Forum in the Saudi capital, Riyadh.