Riyadh – Mubasher: The National Shipping Company of Saudi Arabia (Bahri) inked a contract to establish the National Grain Company, a joint venture (JV) with the Saudi Agricultural and Livestock Investment Company (SALIC), for $110 million.
The investment aims to build a grain handling terminal at Yanbu Commercial Port, in an attempt to meet the future demand for major crops in Saudi Arabia, according to a bourse statement on Monday.
Launched within Bahri’s ambitious plan for growth and development, the project spans an area of 313,000 square metres. The terminal’s storage capacity is 280,000 tonnes, while its production capacity ranges from 3 to 5 million tons per annum.
Construction works of the project will begin in the second half (H2) of 2021 and are expected to complete in the H2-22. The project will be financed through the company’s cash flows and bank loans.
Moreover, the company is currently working to evaluate the project’s expected impact on its results and will announce it in case it is material.
Pilot production is likely to commence in H1-22 for three months, whilst commercial production is predicted to take place in H2 of 2022.
