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 1.4mn sqm development is being delivered and funded in partnership with Arcapita Group Holdings, a global alternative investment firm, following the signing of a long‑term strategic agreement earlier this year, it was revealed in a press communication.
The facility has been designed to support largescale, complex logistics requirements and 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.
Advanced automation
It is being developed to high technical, 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 is aiming to achieve LEED Gold certification.
In tandem, the development reflects broader structural shifts in global supply chains, as economies move toward more regionalized and diversified trade models. As production and sourcing networks become more fragmented, the logistics sector is increasingly becoming central to enabling coordination, resilience, and continuity across multiple markets.
Important step
“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” explained Salem A. Al Huraish, Chairman, ASMO.
“This facility marks an important step forward in advancing more integrated and resilient supply chain, reflecting a long-term vision for efficient development and operational excellence, and aligning strategic infrastructure with integrated operational capabilities,” asserted Sulaiman M. Al Rubaian, Aramco’s Senior Vice President of Procurement & Supply Chain Management.
Strong industrial fundamentals
“The development brings together a strategic location, strong industry fundamentals, and a clear use case within one of the Kingdom’s most important energy and industrial ecosystems,” observed Sheikh Isa Bin Hussam Al Khalifa, Managing Director and Head of MENA, Real Estate, Arcapita.
“This partnership reinforces SPARK’s position as a leading world-class energy and logistics hub. Through its proximity to the largest privately owned dry port in the region, ASMO will have access to a comprehensive range of logistics services,” added Mishal Al Zughaibi, President & CEO, King Salman Energy Park (SPARK).
