Aramco-Backed ASMO And Arcapita Plan Logistics Facility

Dubai (PlantAndEquipment.com) - ASMO, a joint venture between Saudi Aramco and DHL Supply Chain, has collaborated with Arcapita Group Holdings to construct a 1.4 million sq m specialized logistics facility at King Salman Energy Park (SPARK).

The project will encompass a 1.2 million sq m open yard, over 3,000 sq m of office and staff space, 5,300 sq m of chemical storage, and a 43,000 sq m temperature-controlled Grade-A warehouse. The facility is intended to enhance the logistics capacity and support large-scale industrial operations within Saudi Arabia's energy ecosystem.

ASMO will construct, lease, and manage the facility under a 22-year occupational lease, while Arcapita will finance and retain possession of the asset. A forward-funding structure will be implemented to execute the endeavor.

The development is designed to bolster the National Transport and Logistics Strategy of the monarchy under Vision 2030 and is a component of ASMO's overarching strategy to establish four strategic logistics sites throughout the country. The facility is anticipated to provide services to Aramco, its affiliates, and other industrial consumers upon its operationalization.

SPARK is situated between Dammam Seaport, Aramco's Abqaiq facilities, and Al Hasa, thereby facilitating connectivity throughout Saudi Arabia's energy and industrial network. The industrial complex has attracted over 70 investors from 16 countries, with Phase One infrastructure representing an investment of $1.6 billion.