Saudi Arabian VLCC giant Bahri has clinched another contract to provide shipping services to a state agency.
The Riyadh-listed, government-backed shipowner said it has signed a logistics services agreement with arms producer Saudi Arabian Military Industries (SAMI), a wholly-owned subsidiary of the Public Investment Fund.
The deal includes door-to-door sea, air and land transport, as well as freight services to the various business units and affiliated companies of SAMI.
Security contract signed in 2020
The contract for Bahri follows one worth SAR 300m ($80m) signed in November 2020 with the country's Presidency of State Security (PSS).
The PSS is a security body created in 2017 by combining the counterterrorism and domestic intelligence services under one roof.
SAMI was launched in the same year and aims to be in the top 25 of military industries companies in the world by 2030.
No financial terms were revealed for the current deal.
“We are delighted as the national defence champion to enter into an agreement with Bahri, the national shipping carrier, to meet our growing logistics requirements," SAMI chief executive Walid Abukhaled said.
“The agreement demonstrates the kingdom’s dynamic efforts to develop its military industries and logistics sectors."
Bahri CEO Abdullah Aldubaikhi added that the agreement reaffirmed the company's commitment to strengthening leading Saudi entities operating in the public and private sectors by providing them world-class logistics services.
Though the agreement only covers the Saudi market, the two companies are working to expand its scope to include the global defence and logistics sector in the future.
SAMI is focused on increasing exports and bringing foreign investment to the country's military industries sector.
