Riyadh - 24 August 2020
Today H.E Eng. Abdulrahman bin Abdulmohsen Al-Fadley, Minister of Environment, Water and Agriculture, announced the establishment of the National Grain Company through a strategic partnership between SALIC, the Saudi Agricultural and Livestock Investment Company, and Bahri, the National Shipping Company of Saudi Arabia. The total cost of this partnership is estimated at SAR 412 million and seeks to meet the future crop needs of the Kingdom of Saudi Arabia.
The signing ceremony of this partnership took place at the headquarters of the Ministry of Environment, Water and Agriculture, in the presence of H.E Eng. Abdulrahman bin Abdulmohsen Al-Fadley, Minister of Environment, Water and Agriculture and Chairman of the Board of Directors of "SALIC", Mr. Mohammed bin Abdulaziz Al-Sarhan, Chairman of the Board of Directors of Bahri, Eng. Sulaiman bin Abdulrahman Al-Rumaih, CEO of SALIC, and Eng. Abdullah bin Ali Al-Dubaikhi, CEO of Bahri.
This partnership aims to support the trade and handling of grain between the regions of the Black Sea, Europe, South America and the Red Sea region, and to contribute to the import, transportation and distribution process overall. Built with the highest international standards, the plant will begin production with a capacity of about 3 million tons annually by 2022, gradually increasing to 5 million tons. This will allow for the rapid handling of grains by providing consistent logistic station services to all importers in both the private and public sectors.
Commenting on the signing ceremony, H.E Eng. Abdulrahman bin Abdulmohsen Al-Fadley, Minister of Environment, Water and Agriculture and Chairman of the Board of Directors of SALIC, “We are very pleased to announce this partnership today as it falls directly in line with SALIC’s strategic objectives of contributing to food security in the Kingdom and in line with the goals of the 2030 vision. It will also contribute to providing basic food products and stabilizing prices in the Kingdom, which are directly impacted by global production and consumption rates, the movement of commercial shipping, and the net global stocks of basic food commodities.”
His Excellency added: “We are confident that this partnership will play a pivotal role in strengthening supply chains in the Kingdom, as it establishes the largest regional center for grains, which in turn significantly contributes to enhancing food distribution solutions in the region through importing, processing, and exporting grains to Saudi Arabia.” He continued, “Thanks to the strategic location of Yanbu Commercial Port, an essential sea gateway for the import of strategic goods, this project comes in line with one of SALIC’s strategic objectives of achieving over a 50% import coverage rate for all commodities that are in line with the Kingdom's food security strategy.”