ASMO, the joint venture between Saudi Aramco and DHL, has announced the start of construction of its first integrated logistics complex on 1.4 million square meters in King Salman Energy City (SPARK). The project is a key pillar of ASMO's strategy to develop logistics infrastructure to support the Kingdom's energy and industrial sectors over the long term.
The project is being developed and financed in partnership with Arcapita Group Holdings Limited (Arcapita), a global alternative investment management company, under an agreement signed earlier this year.
The project is being developed and financed by Arcapita under an agreement signed earlier this year.
Designed to meet growing logistics needs, the complex includes Class A warehouses with temperature control systems, dedicated chemical storage facilities, offices and staff facilities, and extensive outdoor areas for the storage and handling of industrial products. The project adheres to the highest technical specifications and safety standards, and includes advanced automation solutions and smart storage technologies that contribute to increasing its operational efficiency and enhancing its ability to expand in the future. It also includes fire protection systems, solar energy installations, and electric vehicle charging stations, and we are pursuing LEED Gold certification for green buildings.
The project reflects the structural shifts in global supply chains as economies move toward more diversified and regionally-focused models. As production and supply chains become increasingly complex, logistics is emerging as a key element in enhancing operational flexibility and ensuring business continuity, supporting sustainable demand for high-quality logistics infrastructure, especially in rapidly industrializing markets such as Saudi Arabia.
This project reflects the structural shifts taking place in global supply chains, as economies move towards more diversified and regionally-focused models.
Commenting on this, Mr. Salem bin Abdulrahman Al Hreish, Chairman of ASMO, said: “This complex represents an important step towards building ASMO's long-term logistics network in Saudi Arabia, and is the first of three strategic complexes planned to be developed in different regions of the Kingdom, contributing to strengthening supply chains and providing reliable support for logistics operations in the energy and industrial sectors. This project is also in line with the ambitions of Vision 2030 to establish the Kingdom as a regional logistics hub.”
"Once operational, the project is expected to provide services to Saudi Aramco and its affiliates, as well as other customers in the energy and industrial sectors, enhancing ASMO's ability to provide integrated and centralized logistics solutions to its customer base more efficiently."
Alhreish added: "The project is expected to begin providing services to Saudi Aramco and its affiliates, as well as other energy and industrial customers.
For his part, Saudi Aramco's Senior Vice President of Procurement and Supply Chain Management, Mr. Sulaiman bin Mohammed Al-Rubaian, said: ”As a key stakeholder, Saudi Aramco recognizes the important role that quality logistics infrastructure plays in enhancing service reliability and enabling efficient large-scale supply chain operations. This complex is an important step towards the development of the supply chain ecosystem, reflects the company's long-term vision for growth and operational excellence, and is aligned with a strategic infrastructure capable of efficiently integrating operational capabilities.”
Mr. Sulaiman bin Mohammed Al-Rubaian
It is worth noting that this project is aligned with a long-term development and operation model, combining long-term capital investment with integrated operational capabilities, and balancing Arcapita's role as an investor and asset owner, and ASMO's role as the long-term operator of the complex.
Sheikh Isa bin Hussam Al Khalifa, Executive Director and Head of Real Estate MENA at Arcapita Group, said: ”This investment reflects the growing importance of the company's long-term vision for development and operational excellence: "This investment exemplifies the growing importance of high-quality logistics and industrial assets that meet the requirements of large institutional investors in Saudi Arabia, particularly assets backed by long-term operational demand. As the Kingdom continues to prioritize industrial development, resilient supply chains, and higher levels of self-sufficiency, we expect demand for high-quality, scalable logistics infrastructure to continue to grow. This project is strategically located, has strong supply and demand fundamentals, and has clear applications in key sectors of the Kingdom's energy and industrial materials production."
Kings Salman Energy City CEO, Mr. Meshaal Al-Zughaibi, expressed his happiness with this important investment, describing it as the first of a number of pioneering development projects in the city, adding, “Our teams continue to work at an accelerated pace to implement the first phases of this project and achieve this important milestone. This partnership further strengthens SPARK's position as a global energy and logistics hub, as this complex will provide ASMO with a full range of logistics services, taking advantage of its proximity to the largest privately owned dry port in the region.”
King Salman Energy City (SPARK) is located at the heart of the Kingdom's energy sector and provides direct connectivity to key operational and logistics corridors, promoting efficient movement, storage and material handling throughout the energy and industrial value chain.
Spark is located at the heart of the Kingdom's energy sector.
