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SAL Saudi Logistics has signed an air cargo lease and development agreement from Riyadh Airports Co to lease a 90k sqm plot for 20 years at King Khaled International Airport’s Cargo Village, it said in a disclosure to Tadawul.
The financials: SAL will invest SAR 360 mn into the developments and pay a total of SAR 458 mn in rent over the entire period of the binding agreement or a 4-6.5% share of revenues, depending on which is higher, it said. SAL expects lease cost reductions to come in somewhere around SAR 500 mn throughout the set 20-year period.
REMEMBER- SAL Saudi Logistics handles nearly all of Saudi’s inbound and outbound air cargo. Earlier this year, the cargo firm said it will invest over SAR 12 mn to establish and develop a new cargo terminal at Madinah’s Prince Mohammed bin Abdulaziz International Airport. The terminal would help boost capacity and operational efficiency at the airport. The cargo terminal at King Fahd International Airport (KFIA) will also get an SAR 100 mn overhaul after SAL Saudi Logistics renegotiated its contract to run the Dammam Airports-owned facility in December.
It’s not just air: Saudi Ports Authority (Mawani) and SAL also inked an agreement in November to build a logistics park at Jeddah Islamic Port.
IN OTHER AVIATION NEWS-
Saudi is set to launch a new national air carrier later this year as part of the country’s bid to establish links to 250 destinations worldwide by 2030,General Authority of Civil Aviation (GACA) Economic Policies and Logistics Services Executive Vice President Awad Al Sulami told Asharq Al Awsat. Studies are currently underway to determine the needs of Saudi’s aviation sector.
REMEMBER- An unnamed Saudi investor is also looking to kick off a new airline to boost the Kingdom’s links with Africa last month.
Saudi Cargo is moving headquarters: KSA’s Saudia Cargo has inked a 5-year strategic agreement with Saudi Technic to move its headquarters to Saudi Technic’s Maintenance, Repair and Overall (MRO) Village at Jeddah’s King Abdulaziz International Airport, according to a statement. The 6k sqm facility is scheduled to be operational by September 2025. The pair look to boost operational performance and cut down on costs by sharing the space.
Oman plans to open six new airports by 2028/2029 with design work kicking off this year, Chairman of Oman’s Civil Aviation Authority Nayef bin Ali Al Abri told Asharq Business. The move comes as Oman targets 50 mn passengers using its airports by 2040. The investment tickets for the new airports were not disclosed.
