In a move that reinforces Saudi Arabia’s position as a global logistics hub, ASMO (the flagship joint venture between DHL and Saudi Aramco) announced a strategic partnership agreement with Arcapita, a global alternative investment management group. This partnership aims to develop a comprehensive logistics facility spanning a massive 1.4 million square meters within King Salman Energy Park (SPARK).
Project details and technical specifications
Under this agreement, Arcapita will finance and retain ownership of the facility, while ASMO will handle development, management, and operation through a 22-year long-term lease. The project boasts world-class specifications, including:
- A first-class logistics warehouse: with an area of 43,000 square meters, equipped with the latest temperature control systems.
- Administrative and service facilities: These include offices and staff facilities covering an area of over 3,000 square meters.
- Specialized storage: A dedicated area for storing chemicals with an area of 3,500 square meters that adheres to the highest safety standards.
- Operational area: A vast open space of up to 1.2 million square meters to serve heavy logistics operations.
Strategic importance and economic context
This project comes within the context of the major economic transformations taking place in the Kingdom as part of Saudi Vision 2030 , which aims to transform the Kingdom into a global logistics hub connecting three continents. King Salman Energy Park (SPARK) is a cornerstone in localizing energy supply chains, providing an integrated industrial environment that attracts both foreign and domestic investments.
This collaboration is of particular importance given the role that ASMO plays as an entity that combines Aramco’s expertise in the energy sector with DHL’s global logistics capabilities, ensuring the provision of flexible and sustainable supply chain solutions that serve the energy, chemicals and industry sectors in the Eastern Province and the GCC countries.
Sustainability and advanced technologies
In line with global and local trends toward net-neutrality, the facility is designed to meet the highest environmental sustainability standards, aiming for LEED Gold for green buildings. The project will include a solar energy infrastructure and electric vehicle charging stations, as well as the integration of automation, robotics, and smart warehouse management systems to enhance operational efficiency.
Strengthening national supply chains
Professor Salem Al-Harish, Chairman of the Board of Directors of ASMO, affirmed that this project reflects the company's commitment to building a resilient infrastructure that supports the Kingdom's industrial ambitions. For his part, Sulaiman Al-Rabiaan, Senior Vice President of Procurement at Aramco, indicated that the new center will enhance the resilience of Aramco's and its subsidiaries' supply chains, thereby reducing operational risks and ensuring business continuity.
This facility is the first in ASMO’s plan to establish four strategic logistics centers, supporting the National Transport and Logistics Strategy (NTLS), and taking advantage of SPARK’s distinguished geographical location near Dammam Port and the main production facilities in Abqaiq and Al-Ahsa.
