Aramco-DHL venture breaks ground on Spark logistics facility

Asmo, a joint venture between Saudi Aramco and DHL Supply Chain, has commenced construction of its first purpose-built logistics centre at King Salman Energy Park, known as Spark.

The 1.4 million square metre park in Saudi Arabia’s Eastern Province is being delivered and funded in partnership with Arcapita, a Bahraini alternative investment company, following the signing of a long-term agreement in February.

The facility has been designed to support large-scale, complex logistics requirements and will include a temperature-controlled warehouse, chemical storage, offices and staff facilities, and a large open yard for industrial storage and handling, Asmo said in a statement.

Once operational, the facility will serve Saudi Aramco, its affiliates, and other energy and industrial customers.

The cost and projected timeline were not disclosed.

Spark is located between Dammam seaport and Aramco’s site at Abqaiq. It has attracted more than 70 investors from 16 countries, with the first phase infrastructure costing $1.6 billion.

Saudi Arabia’s Vision 2030 aims to transform the country’s aviation and logistics industry, increasing annual cargo capacity from around 1 million tonnes to 4.5 million tonnes by the end of this decade.

Trade across the Oman and Saudi Arabia border has surged to record levels as companies reroute goods overland to avoid the maritime disruption caused by the Iran conflict.

The value of goods crossing the border almost tripled to OMR320 million ($830 million) in March, compared with OMR112 million in February, according to the Oman Public Authority for Special Economic and Free Zones. 

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