ASMO, the joint venture between DHL and Saudi Aramco, today announced a partnership with Arcapita Group Holdings Limited (Arcapita), a leading global alternative investment firm, to develop a 1.4 million square meter specialized logistics facility in King Salman Energy City (SPARK). The project represents a significant step in the development of logistics infrastructure in the Kingdom, as it will be implemented through a pre-financing model that reflects a long-term investment in national assets that support industrial growth and supply chain efficiency.
Under the partnership, Arcapita will finance and retain ownership of the facility, while ASMO will develop, lease and operate the facility under a 22-year operating lease. The facility will feature a 43,000 square meter Class A logistics warehouse with a temperature-controlled system, offices and staff facilities exceeding 3,000 square meters, a 3,500,000 square meter chemical storage area, and a 1.2 million square meter open operational yard. The investment reflects a shared vision to develop a flexible, scalable infrastructure to support the Kingdom's growing demand.
The facility is designed to support large-scale industrial operations by implementing advanced warehouse and building management systems, robotic systems, automated storage and retrieval systems, and an integrated digital architecture that enhances operational efficiency. The facility will also adhere to the highest global sustainability standards, including readiness to install solar energy systems, provide charging stations for electric vehicles, and achieve LEED Gold certification.
Asmo's Chairman, Mr. Salem Al Hreish, said: "This project reflects the strategic direction of ASMO's business and emphasizes its role in providing flexible and future-ready supply chains. By investing in long-term infrastructure and strategic partnerships, we contribute to supporting the Kingdom's industrial ambitions and developing integrated logistics capabilities that serve national priorities and global markets."
Asmo's Chairman, Mr. Salem Al-Hreish, said.
The SPARK facility is the first logistics center developed specifically for ASMO as part of a plan to establish four strategic locations that form a key pillar of its national logistics network, in line with the National Transport and Logistics Strategy (NTLS) and the objectives of Saudi Vision 2030. Once operational, the facility will serve Saudi Aramco and its subsidiaries, as well as other key industrial players in the Kingdom.
Senior Vice President of Procurement and Supply Chain Management at Saudi Aramco, Mr. Sulaiman Al-Rubaian, said: "ASMO's new logistics center in Spark enhances Saudi Aramco's supply chain resilience by providing a centralized, highly efficient logistics facility in the heart of the Kingdom's energy sector. As a key stakeholder, we appreciate ASMO's strategic investments in logistics infrastructure, which demonstrate its drive to deliver innovative, tailored solutions across all supply chain activities."
Senior Vice President of Procurement and Supply Chain Management at Saudi Aramco, Mr. Sulaiman Al-Rubaian, said: "We are delighted to be part of the new ASMO Logistics Center in Spark.
Sheikh Isa bin Hussam Al Khalifa, Arcapita Group's Director of Real Estate for the Middle East and North Africa, said: ”This transaction reinforces Arcapita Group's track record of developing and investing in first-class logistics and industrial assets. Combining our local expertise in Saudi Arabia with our experience in executing complex pre-funded development projects, we are pleased to work with ASMO to support the development of a facility specifically designed to serve the Kingdom's energy and industrial sectors, allowing us to add a high-quality asset to our investment portfolio."
The CEO of King Salman Energy City (SPARK), Meshal Al-Zughaibi, also welcomed this partnership with ASMO, expressing his happiness for this strategic partnership that strengthens the city's position as a leading logistics center in line with the objectives of Saudi Vision 2030, pointing out that this qualitative investment embodies the close cooperation between all parties involved. He added: ”The advanced infrastructure and integrated services provided by SPARK are a key driver behind ASMO's decision to establish its state-of-the-art logistics center within the city."
Spark's advanced infrastructure and integrated services are a key driver behind ASMO's decision to establish its advanced logistics center within the city.
Spark is part of the Kingdom's energy ecosystem, strategically located between the Dammam seaport and Saudi Aramco's facilities in Abqaiq and Al Ahsa Governorate, providing direct and integrated connectivity across the Kingdom's energy and industrial network. The city offers state-of-the-art infrastructure and digital readiness that supports efficient integration of operations, and has attracted more than 70 investors from 16 countries. The first phase of investment in the development of its infrastructure amounted to about 1.6 billion US dollars, reflecting its position as a promising industrial and logistics center in the region.
