ASMO begins construction of 1.4m sqm logistics hub at Saudi Arabia’s SPARK
The facility has been designed to support large-scale, complex logistics requirements.
SAUDI ARABIA – ASMO, a joint venture between Aramco and DHL, has commenced construction of its first purpose-built logistics hub at King Salman Energy Park (SPARK), marking a significant milestone in the development of long-term logistics infrastructure supporting Saudi Arabia’s energy and industrial sectors.
The 1.4 million sq m development is being delivered and funded in partnership with Arcapita Group Holdings, following a long-term strategic agreement signed earlier this year.
Facility Specifications and Asset Class Priorities
The facility has been designed to support large-scale, complex logistics requirements. It will include a temperature-controlled Grade A logistics warehouse, chemical storage, offices and staff facilities, and an extensive open yard for industrial storage and handling.
It is being developed to high technical and safety standards, incorporating advanced automation and smart warehouse technologies to enhance operational efficiency and scalability. The development will also include fire protection systems, photovoltaic and EV charging readiness, and aims to achieve LEED Gold certification.
Long-Term Development and Operating Structure
The project uses a long-term development and operating structure that aligns long-duration capital with integrated operating capabilities, combining Arcapita’s investment and asset ownership with ASMO’s role as long-term operator of the facility.
Once operational, the facility will serve Saudi Aramco, its affiliates, and other energy and industrial customers, enhancing ASMO’s ability to deliver more centralized and efficient logistics solutions.
Direct Statements from Leadership
Salem A. Al Huraish, Chairman of ASMO, said: “This facility represents an important step in building ASMO’s long-term logistics network in Saudi Arabia. As the first of three planned strategic sites across the Kingdom, it will strengthen in-Kingdom supply chain capabilities and support reliable, efficient logistics operations for the energy and industrial sectors.”
On the other hand, Sulaiman M. Al Rubaian, Aramco’s Senior Vice President of Procurement & Supply Chain Management, said: “As ASMO’s anchor customer, Aramco recognizes the critical role that high-quality logistics infrastructure plays in enhancing service reliability and enabling efficient, large-scale supply chain operations.”
Logistics Impact
Mishal Al Zughaibi, President & CEO of SPARK, said: “Through its proximity to the largest privately owned dry port in the region, ASMO will have access to a comprehensive range of logistics services.”
For logistics business owners across MEA, the ASMO-SPARK hub offers a replicable model for partnering with state-owned energy firms.
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