Strategic Synergy: ASMO and Arcapita’s Landmark Logistics Hub at SPARK

Introduction

Saudi Aramco and ASMO (A joint venture of DHL) will work with Arcapita Group to develop a logistics facility. This project is developed in King Salman Energy Park (SPARK). Arcapita will provide funds for this project and take ownership of this facility. On the other hand ASMO will develop it and operate it for 22 years. This is ASMO's first purpose built logistic facility which will provide modern supply chain solution of Kingdom.
Strategic Synergy: ASMO and Arcapita’s Landmark Logistics Hub at SPARK

Key Project Detail

FeatureDescription
Total Area1.4 Million Square Meters
Warehouse43,000 sqm (Temperature-controlled, Grade-A)
Open Yard1.2 Million Square Meters
Chemical Storage5,300 sqm (Dedicated space)
Offices & StaffOver 3,000 sqm
SustainabilityLEED Gold Certified, EV Charging, Photovoltaic Ready
TechnologyRobotics, Automated Storage & Retrieval Systems (ASRS), Digital Integration
Lease Term22-Year Occupational Lease

Impact of This Partnership

  • This facility will not only serve Saudi Aramco but also will serve other industrial players. Goods transportation will be fast and easy.
  • Robotics and automatic systems will be used in this facility. Logistic standard will be high and there will be no space of mistake.
  • The use of LEED Gold Certification and solar PV shows that this project is aligned with Saudi Vision 2030 to promote green energy.
  • This is one of the four projects of ASMO in Kingdom which will strengthen logistics network. Gradually Saudi Arabia is moving towards global logistic hub.
  • This model is based on forward funding. It shows that international and local investors has great trust on Kingdom's real estate and industrial sector.
  • This facility comes on the way to future GCC Railway Line. So transportation between Dammam and other gulf countries will be easy.

Comparison with Other GCC Logistics Hub

FeatureASMO @ SPARK (KSA)JAFZA / DP World (UAE)KAEC Industrial Valley (KSA)
Primary FocusEnergy, Oil & Gas, ChemicalsGeneral Trade & E-commerceManufacturing & Red Sea Trade
Key AdvantageIntegration with Aramco & SPARK ecosystemWorld's largest free zone connectivityProximity to King Abdullah Port
SustainabilityLEED Gold, EV Ready, SolarCarbon Neutrality GoalsESG-Compliant Warehousing
Tech LevelHigh (Robotics, ASRS)Very High (Smart Trade, 4PL)High (Modern Infrastructure)

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