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SAL and Tibah Airports partner to boost cargo capacity at Madinah airport: KSA-based logistics provider SAL Saudi Logistics Services and Madinah’s airport operator Tibah Airports have inked a 16-year cooperation agreement to lease land for the development a new SAR 12 mn air cargo terminal at Madinah’s Prince Mohammad Bin Abdulaziz International Airport, according to a Tadawul disclosure. The transaction value is worth SAR 420K annually, or to a portion of the terminal’s revenues, whichever is higher.
How it will work: SAL will construct and develop the cargo terminal on a 7.5k square meter plot, in a bid to boost cargo capacity and efficiency, according to the disclosure. SAL will save SAR 34.36 mn on rental costs over the duration of the contract.
And that’s not all: National carrier Saudia also signed an agreement with Tibah Airports to expand Madinah airport’s operational capacity through connecting it with other locations worldwide, SPA reported last Thursday.
The airport is seeing an overhaul: The second phase of the Tibah’s expansion work launched last week as officials look to more than double the capacity to 17 mn travelers by 2027. The SAR 1.2 bn second phase is being carried out by a consortium that includes Turkish airports contractor TAV Construction and local Al Arrab Contracting.
SAL inked a similar agreement with Dammam Airport back in December: The company is investing 100 mn into the renovation and upgrade of the Dammam cargo terminalbetween now and 2033. The agreement sees SAL saving some SAR 276 mn in rent payments over the period, while receiving an annual payment from the airport that is equivalent to SAR 16.5 mn or 5% of the terminal’s annual gross revenues, whichever is higher.
