Construction has officially started on a massive new logistics centre at the King Salman Energy Park (SPARK). ASMO, the joint venture between Aramco and DHL, is behind the 1.4 million square metre project. This development marks the first of three planned strategic sites across the country. It is intended to strengthen the industrial and energy supply chains within Saudi Arabia.

The project is being funded and delivered through a long term partnership with Arcapita Group Holdings Limited. This follows a strategic agreement signed by the global investment firm earlier this year. The facility will cater to complex logistics needs. It will feature a Grade A temperature controlled warehouse, chemical storage areas, and staff offices. A large open yard is also included for industrial handling and storage.

Advanced automation and smart technologies are being integrated into the build to improve efficiency. The project is aiming for LEED Gold certification. It will include sustainable features like electric vehicle charging points and solar power readiness. These technical standards are designed to ensure long term operational reliability for the energy sector.

“This facility represents an important step in building ASMO’s long term logistics network in Saudi Arabia,” said Salem A. Al Huraish, Chairman of ASMO. “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. The development also aligns with Saudi Arabia’s Vision 2030 ambition to further establish the Kingdom as a regional logistics hub.”

Once the site is operational, it will serve Saudi Aramco and its various affiliates. 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. 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.”

The partnership relies on a structure where Arcapita provides the capital and asset ownership while ASMO acts as the long term operator. Sh. Isa bin Hussam Al Khalifa, Managing Director at Arcapita, said: “This investment reflects the growing importance of institutional quality logistics and industrial assets in Saudi Arabia, particularly those underpinned by long term operating demand. As the Kingdom continues to prioritize industrial development, supply chain resilience, and self-sufficiency, demand for scalable, high-quality logistics infrastructure is increasing. 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.”

Mishal Al Zughaibi, President & CEO of King Salman Energy Park, said: “We are delighted to celebrate the groundbreaking of this major investment. Since the signing of the agreement, our teams have worked diligently and collaboratively to accelerate the early stages of the project, enabling the achievement of this important milestone. 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.”