ASMO, a joint venture between Saudi oil giant Aramco and multinational logistics company DHL Supply Chain, has sealed a partnership deal with Arcapita Group Holdings, a global alternative investment firm, to develop a 1.4 million sq m purpose-built logistics facility at King Salman Energy Park (Spark) in Saudi Arabia designed to support the next phase of the kingdom’s logistics and supply chain development.
The key facility will include a 43,000 sq m temperature-controlled Grade-A logistics warehouse, over 3,000 sq m of offices and staff facilities, 5,300 sq m of dedicated chemical storage space, and a 1.2 million sq m open yard.
The investment reflects a shared goal by the parties to develop resilient, scalable, and future-ready institutional grade logistics infrastructure in the kingdom, said the statement from ASMO.
Designed for large-scale industrial operations, the facility will help boast advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, adherence to globally recognised sustainability standards, including photovoltaic readiness, electrical vehicle charging, and a LEED Gold certification, it stated.
As per the deal, Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease and operate the asset under a 22-year occupational lease.
The project will be delivered through a forward funding transaction, reflecting a long-term investment in national infrastructure, it added.
On the strategic partnership, Chairman Salem Al Huraish said this development reflects the strategic intent behind ASMO’s mandate and reaffirms its role in enabling resilient and future-ready supply chains.
"By investing in long-term infrastructure and strategic partnerships, ASMO is supporting the kingdom’s industrial ambitions and contributing to the development of integrated logistics capabilities that serve both national priorities and global markets," noted Al Huraish.
The facility represents ASMO’s first purpose-built logistics centre and forms part of four planned strategic sites underpinning its national logistics network, aligned with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030, stated the top official.
Once operational, it will serve Aramco, its affiliates, and other key industrial players across the kingdom, he added.
Sulaiman Al Rubaian, Aramco Senior Vice President of Procurement & Supply Chain Management, said ASMO’s new logistics hub at Spark helps to strengthen Aramco’s supply chain resilience by delivering a centralised, high-efficiency facility in the heart of Saudi Arabia’s energy sector.
"As an anchor customer, we recognize the value of ASMO’s strategic investments in logistics infrastructure, demonstrating their ambition to delivering innovative, customer-focused solutions across the supply chain," noted Al Rubaian.
Located within Saudi Arabia’s energy ecosystem, Spark is strategically positioned between Dammam Seaport, Aramco’s Abqaiq facilities, and Al Hasa, enabling direct connectivity across the kingdom’s energy and industrial network.
The site supports integrated operations through modern infrastructure and digital readiness and has attracted more than 70 investors from 16 countries, with Phase One infrastructure representing a total investment of $1.6 billion.
Isa Al Khalifa, Director and Head of Mena Real Estate at Arcapita, said this transaction builds on its established track record in developing and investing in Grade-A logistics and industrial assets.
"Combining our local expertise in Saudi Arabia with our experience in complex, forward-funded developments, we are pleased to partner with ASMO to support the development of a purpose-built facility that supports the Kingdom’s energy and industrial sectors, while securing a high-quality asset," he stated.
Mishal Al Zughaibi, President & CEO of Spark, said: "We are pleased to welcome ASMO to Spark as part of a strategic partnership that further strengthens our position as a premier logistics hub aligned with the kingdom’s Vision 2030."
"This significant investment reflects the strong collaboration and ambition of all parties involved. Spark’s advanced infrastructure and comprehensive services were a key factor in ASMO’s decision to establish its state-of-the-art logistics center within our park," he added.-TradeArabia News Service