ASMO, the joint venture between Saudi Aramco and DHL, announced the start of construction on its first custom-designed integrated logistics complex, covering an area of 1.4 million square meters in King Salman Energy Park (SPARK). This project is a key pillar of ASMO\u2019s strategy to develop logistics infrastructure to support the Kingdom\u2019s energy and industrial sectors in the long term.
This project is being developed and financed in partnership with Arcapita Group Holdings Limited (Arcapita), a global firm specializing in alternative investment management, pursuant to an agreement signed earlier this year.<\/p>\n\n\n\n
This complex was designed to meet growing logistics needs and features Class A logistics warehouses equipped with temperature-controlled systems, facilities dedicated to chemical storage, as well as offices and employee amenities, and spacious outdoor yards for the storage and handling of industrial products. The project also adheres to the highest technical specifications and safety standards, incorporating advanced automation solutions and smart storage technologies that enhance its operational efficiency and future scalability. It also features fire protection systems, solar power installations, and electric vehicle charging stations, and we are seeking LEED Gold certification for green buildings.
This project reflects the structural shifts taking place in global supply chains, as economies move toward more diversified models that focus on regional needs. With production and supply networks becoming increasingly complex, the logistics sector is emerging as a pivotal element in enhancing operational resilience and ensuring business continuity, thereby supporting sustained demand for high-quality logistics infrastructure, particularly in markets experiencing rapid industrial growth such as Saudi Arabia.<\/p>\n\n\n\n
Commenting on this, Mr. Salem bin Abdulrahman Al-Hareesh, Chairman of the Board of Directors of \u201cASMO,\u201d said: \u201dThis complex represents an important step toward building ASMO\u2019s long-term logistics supply network in the Kingdom of Saudi Arabia, It is the first of three strategic complexes planned for development in various regions of the Kingdom, which will help strengthen supply chains and provide reliable support for logistics operations in the energy and industrial sectors. This project is also in line with the aspirations of Vision 2030 to establish the Kingdom as a regional logistics hub.\u201d.
Al-Harish added, \u201c\u201dOnce operational, the project is expected to begin providing services to Saudi Aramco and its subsidiaries, as well as other clients in the energy and industrial sectors, thereby enhancing ASMO\u2019s ability to deliver integrated and centralized logistics solutions to its customer base with greater efficiency.\u201d.<\/p>\n\n\n\n
For his part, Saudi Aramco\u2019s Senior Vice President of Procurement and Supply Chain Management, Mr. Sulaiman bin Mohammed Al-Rabian, said: \u201cAs a key player, Saudi Aramco recognizes the importance of high-quality logistics infrastructure in enhancing service reliability and enabling large-scale supply chain operations efficiently. This complex represents an important step toward developing our supply chain system, reflects the company\u2019s long-term vision for growth and operational excellence, and aligns with strategic infrastructure capable of efficiently integrating operational capabilities.\u201c.<\/p>\n\n\n\n
It is worth noting that this project aligns with a long-term development and operations model, combining long-term capital investment with integrated operational capabilities, It also balances the role of \u201cArkapita\u201d as an investor and asset owner with that of \u201cASMO\u201d as the long-term operator of the complex.
In addition, Sheikh Isa bin Husam Al Khalifa, CEO and Head of Real Estate for the Middle East and North Africa at Arcapita Group, said: \u201cThis investment underscores the growing importance of high-quality logistics and industrial assets that meet the requirements of major institutional investors in the Kingdom of Saudi Arabia, particularly those backed by long-term operational demand. As the Kingdom continues to prioritize industrial development, enhance the resilience of its supply chains, and achieve higher levels of self-sufficiency, we expect demand for high-quality, scalable logistics infrastructure to continue growing. This project is distinguished by its strategic location and strong fundamentals in terms of supply and demand, as well as its clear applications in key sectors for energy and industrial materials production in the Kingdom.\u201d.<\/p>\n\n\n\n
The CEO of King Salman Energy City, Mr. Mishaal Al-Zaghibi, expressed his delight at this significant investment, describing it as the first of a number of pioneering development projects in the city, adding \u201cOur teams are continuing to work at an accelerated pace to implement the initial phases of this project and complete this important landmark. This partnership also contributes to strengthening the city\u2019s (SPARK) as a global hub for energy and logistics, as this complex will provide ASMO with a comprehensive range of logistics services, leveraging its proximity to the region\u2019s largest privately owned dry port.\u201d.
King Salman Energy Park (SPARK) is located at the heart of the Kingdom\u2019s energy sector and provides direct connectivity to key operational and logistical corridors, thereby enhancing the efficiency of transportation, storage, and material handling across the various stages of the value chain in the energy and industrial sectors.<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>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. 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