Saudi state-owned companies SALIC and the National Shipping Carrier of Saudi Arabia (Bahri) have formed a commodities joint venture, National Grains Company, they said in a statement on Monday.
The first phase of the project will be at a cost estimated at SR 412,000,000 Saudi riyals ($109.86 million) and will be focused on trade, handling and storage of grains among their sources in all regions.
The venture also aims to be involved in the import, transport and distribution of grains.
The company will start with a capacity of about 3,000,000 tons annually, gradually increasing to 5,000,000 tons.
Saudi Environment, Water and Agriculture Minister Abdulrahman Al-Fadhli sponsored the inauguration ceremony of the National Grain Company.
“We are delighted with this partnership, which aligns with SALIC’s strategy to contribute to achieving food security in the Kingdom, as part of the Vision 2030 objectives. The project will also aid with the provision of basic food products and price stability in the Kingdom, which is tied to global production and consumption rates, the movement of commercial shipping and global stocks of basic food commodities," Fadhli said.
“We are confident that this company will play a major role in strengthening supply chains in the Kingdom of Saudi Arabia, as it will lead to the building of the largest regional center for grains."
"The new terminal will enhance food distribution solutions in the region by importing, processing, exporting, and storing grains to the Kingdom, thanks in part to the strategic location of Yanbu Commercial Port, a key maritime gateway to receive the Kingdom’s imports of strategic goods."
"This project also reflects SALIC’s strategic objectives to achieve more than 50% of the import coverage rate for all commodities identified as strategic goods, in line with the Kingdom’s food security strategy,” he concluded.
