ASMO, the joint venture between DHL and Saudi Aramco, announced today a partnership with Arcapita Group Holdings Limited (\u201cArcapita\u201d), a leading global alternative investment firm, to develop a 1.4-million-square-meter specialized logistics facility in King Salman Energy Park (SPARK). This project represents a significant milestone in the development of the Kingdom\u2019s logistics infrastructure, as it will be implemented through a pre-financing model that reflects a long-term investment in national assets that support industrial growth and enhance supply chain efficiency.<\/p>\n\n\n\n
Under this partnership, the \u201cArcapita\u201d Group will finance and retain ownership of the facility, while \u201cASMO\u201d will handle its development, leasing, and operation under a 22-year operating lease agreement. The facility will include a 43,000-square-meter, temperature-controlled, Class 1 logistics warehouse, along with offices and employee facilities covering more than 3,000 square meters, a 3,500 thousand-square-meter area dedicated to chemical storage, and an open operational yard spanning 1.2 million square meters. This investment reflects a shared vision to develop a flexible, scalable infrastructure that supports meeting the growing demand in the Kingdom.<\/p>\n\n\n\n
The facility is designed to support large-scale industrial operations through the implementation of advanced warehouse and building management systems, robotic systems, and automated storage and retrieval systems, as well as an integrated digital infrastructure that enhances operational efficiency. The facility will also adhere to the highest global standards for sustainability, including readiness for the installation of solar energy systems, the provision of charging stations for electric vehicles, and the attainment of LEED Gold certification.<\/p>\n\n\n\n
ASMO\u2019s Chairman of the Board, Mr. Salem Al-Harish, said: \u201cThis project reflects the strategic direction of ASMO\u2019s business and underscores its role in providing flexible, future-ready supply chains. By investing in long-term infrastructure and forging strategic partnerships, we are helping to support the Kingdom\u2019s industrial ambitions and develop integrated logistics capabilities that serve national priorities and global markets.\u201d.<\/p>\n\n\n\n
This facility at \u201cSPARK\u201d is the first logistics center developed specifically for ASMO as part of a plan to establish four strategic locations that will form a cornerstone of its national logistics network, in line with the National Transport and Logistics Strategy (NTLS) and to achieve the goals of Saudi Vision 2030. Once operational, the facility will provide services to Saudi Aramco and its subsidiaries, as well as other major industrial entities in the Kingdom.<\/p>\n\n\n\n
For his part, Saudi Aramco\u2019s Senior Vice President of Procurement and Supply Chain Management, Mr. Sulaiman Al-Rabian, said: \u201cThe new ASMO Logistics Center in SPARK contributes to enhancing the resilience of Saudi Aramco\u2019s supply chains by providing a highly efficient, centralized logistics facility at the heart of the Kingdom\u2019s energy sector. As a key player, we recognize the importance of ASMO\u2019s strategic investments in logistics infrastructure, which demonstrate its commitment to delivering innovative solutions tailored to market requirements across various supply chain activities.\u201d.<\/p>\n\n\n\n
Sheikh Isa bin Hossam Al Khalifa, Director of Real Estate for the Middle East and North Africa at the Arcapita Group, stated: \u201cThis transaction reinforces Arcapita Group\u2019s track record in developing and investing in premier logistics and industrial assets. By combining our local expertise in the Kingdom of Saudi Arabia with our experience in executing complex, pre-completion-financed development projects, we are pleased to collaborate with ASMO to support the development of a facility specifically designed to serve the Kingdom\u2019s energy and industrial sectors, thereby enabling us to add a high-quality asset to our investment portfolio.\u201d.<\/p>\n\n\n\n
Mishaal Al-Zaghibi, CEO of King Salman Energy Park (SPARK), also welcomed this partnership with ASMO, expressing his delight at this strategic partnership, which reinforces the city\u2019s position as a leading logistics hub in line with the objectives of Saudi Vision 2030, noting that this significant investment embodies the close cooperation among all stakeholders. He added: \u201cThe advanced infrastructure and integrated services provided by SPARK are a key driver behind ASMO\u2019s decision to establish its state-of-the-art logistics center within the city.\u201d<\/p>\n\n\n\n
Spark City is part of the Kingdom\u2019s energy ecosystem, strategically located between the Port of Dammam and Saudi Aramco\u2019s facilities in Abqaiq and Al-Ahsa Province, providing direct and integrated connectivity across the Kingdom\u2019s energy and industrial networks. The city offers modern infrastructure and advanced digital capabilities that support highly efficient operational integration, and it has successfully attracted more than 70 investors from 16 countries. Investments in the first phase of its infrastructure development reached approximately 1.6 billion U.S. dollars, reflecting its status as a promising industrial and logistics hub in the region.<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>ASMO, the joint venture between DHL and Saudi Aramco, announced today a partnership with Arcapita Group Holdings Limited (\u201cArcapita\u201d), a leading global alternative investment firm, to develop a 1.4 million-square-meter specialized logistics facility in King Salman Energy Park (SPARK). This project represents a significant step forward in the development of the Kingdom\u2019s logistics infrastructure, as it will \u2026 Read 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