Bahri, Bollore Logistics ink joint venture
July 19, 2017: One of the global players in transportation and logistics, Bahri, has signed an agreement with the international Group Bollore, to establish a new logistics joint venture between the company and Bollore Logistics. This new cooperation will serve the customers in Saudi Arabia and the wider region. The agreement marks another step in Bahri’s and Bollore Logistics’ expansion into the fast-growing logistics and supply chain management market within the GCC.
The new entity will be headquartered in Riyadh, the joint venture will leverage Bolloré’s global reach and logistics platform, along with Bahri’s local logistics expertise, wide customer base, strong maritime expertise, and its fleet of multi-purpose vessels. Bahri will be the majority stakeholder with 60 percent holding in the venture, which will operate under the name Bahri Bollore Logistics, while Bolloré will own the remaining 40 percent.
“We are proud to partner with a well-known and respected global player like Bollore Logistics, which brings more than three decades of expertise in the logistics industry. Bollore’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,” said Ali Al-Harbi, acting CEO of Bahri.
Philippe Lortal, CEO of Bollore Logistics Middle East – South Asia, added, “This collaboration will intensify Bollore Logistics’ development in the Middle East, which is definitely a critical 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.”
The logistics market in the GCC is worth SAR176.3 billion (US$47 billion), with Saudi Arabia, with a market size of SAR71.3 billion (US$19 billion), representing 43 per cent 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 Kingdom’s logistics industry has been growing at an average rate of around 6 percent per year.