By GMM News | 2024-08-26 | International Shipping News |

The National Shipping Company of Saudia Arabia (Bahri) is going big in its latest step to modernize its fleet and expand shipments of Saudi crude. The company reports it will acquire nine very large crude oil tankers (VLCCs) for approximately $1 billion ( 3.75 billion Saudi riyal – $999 million) from Evangelos Marinaki’s Capital Maritime and Trading Corporation located in Greece.

The company said the purchase was part of its ambitious fleet modernization program. Bahri’s oil transport business currently operates 40 VLCCs with a capacity of more than 13 million tons. The purchase the company said will permit it to streamline the process of phasing out older vessels.

“The transaction will improve the fleet competitiveness of Bahri Oil Transport business unit as the modern, eco-scrubber, and cost-efficient VLCCs will boost both revenues and profitability,” the company writes in a stock exchange filing. “The transaction will significantly advance Bahri’s fleet modernization plans, reinforcing its position among leading VLCC owners globally.”

The company asserts that it currently has the largest fleet overall of double-hulled VLCCs and ranks among the largest VLCC operators overall behind the Chinese. The majority of the ships that are being acquired were built in South Korea and have an average age of 5.9 years, nearly half the company’s current average fleet age. The average size of each is around 311,500 dwt.

For Capital, it also clears out its older fleet leaving the company after the delivery of the sold vessels in the first quarter of 2025 with just two operating ships. They however have also signaled a shift in strategy and modernization. The company ordered six LNG dual-fuel VLCCs. They are being built in China for delivery in 2026 and 2027.

The Maritime Excutive