Bunge, Bahri To Form Ocean Freight Joint Venture In Middle East - Quick Facts

(RTTNews) - Bunge Limited (BG), a global agribusiness and food company, announced Wednesday that its unit Koninklijke Bunge B.V. has signed definitive agreements with Bahri Dry Bulk Co. or BDB, a unit of Saudi Arabia-based Bahri Group.

The companies will form a joint venture to establish an ocean freight supplier for dry bulk import and export flows in and out of the Middle East region. Financial terms of the agreements were not disclosed.

The JV, which will operate under the name Bunge Bahri Dry Bulk Ltd., will provide exclusive freight transportation services to regional and other international customers.

The company plans to ship over 5 million metric tons in year one, ramping up volume over time to double-digit figures. BDB and Bunge will own 60/40% of the JV respectively, and it will be registered and based in Dubai.

The JV, which will be financed pro rata by BDB and Bunge, will charter and commercially operate SUPRAMAX and/or PANAMAX initially from the fleet currently owned or managed by BDB and subsequently from third parties.