Asmo has set a Nov. 15 bid deadline for its logistics hub expansion at King Salman Energy Park (Spark). The company is the logistics joint venture of Saudi Aramco and DHL Supply Chain. The complex sits in Saudi Arabia’s Eastern Province, inside the energy development known as Spark. The park’s first-phase infrastructure carries a $1.6 billion (SAR 6 billion) price tag. Investments committed at the 50-square-kilometre site already exceed $3 billion.
Cost of the Spark Logistics Hub Expansion
Asmo has not disclosed the value of the current expansion tender. However, a clear reference figure exists from May, when the venture awarded an estimated SR820 million ($218 million) contract. That award covered the logistics complex’s first phase. MEED linked the new tender to that deal in its Nov. 9 report.
Al-Khobar-based engineering firm House of Consulting Office serves as project consultant.
Scope of implementation on the Project
The expansion adds more than 124,000 square metres, about 1.33 million square feet, at Spark. The overall development plans a 43,000 sq m temperature-controlled warehouse built to Grade A specification. More than 3,000 sq m of offices and staff amenities sit alongside 5,300 sq m of chemicals storage. An open yard covers about 1.2 million sq m for large-scale industrial use.
Planned systems include advanced warehouse and building management, end-to-end digital connectivity, automation and robotics. The scheme also carries sustainability markers, including solar photovoltaic readiness and electric-vehicle charging infrastructure. Developers target Leed Gold certification under internationally recognised standards.
On the deal side, Arcapita Group Holdings signed an agreement with Asmo in February to deliver the project. The Bahrain-headquartered investor will fund the scheme and retain ownership of the asset. Asmo will develop the facility, then lease and operate it under a 22-year occupational lease. According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.
Challenges facing the Spark Logistics Hub Expansion
The tender calendar is the first pressure point. MEED published the notice on Nov. 9, leaving bidders less than a week to price the works. Delivery standards raise the bar further. The project must reach Leed Gold while pairing cold-chain storage, chemicals handling and heavy yard operations on one site.
The 22-year lease also ties Asmo to long-term operating performance at a facility it has yet to build. Moreover, the centre will serve as Asmo’s first purpose-built logistics facility, so execution sets the template for everything that follows.
Outlook
The centre anchors one of four strategic locations in a planned nationwide logistics network. The network aligns with the National Transport and Logistics Strategy under Saudi Vision 2030. Bids close on Nov. 15, and Asmo awards the contract after it completes evaluation. The venture already contracted the first phase in May, putting the expansion next in line.
Other Projects
Aramco is also involved in the Petro Rabigh refinery upgrade project which is also making headway. EPC bid deadline for the $3.5 billion Petro Rabigh refinery upgrade project now falls at year-end. Rabigh Refining & Petrochemical Company, known as Petro Rabigh, set the new cutoff in December. Saudi Aramco holds 60 percent of the venture alongside Japan’s Sumitomo Chemical. MEED reported the extension exclusively on Monday, moving the date back from a Nov. 19 deadline.
Project Overview
- Energy Park Cost: $1.6 billion first-phase infrastructure
- Energy Park Investment: $3 billion-plus attracted to date
- Reference Value: $218 million (SR820m), May first-phase award
- Expansion Tender Value: Not disclosed
- Location: King Salman Energy Park (Spark), Eastern Province
- Client: Asmo, Aramco-DHL joint venture
- Funder and Owner: Arcapita Group Holdings
- Consultant: House of Consulting Office, Al-Khobar
Scope
- Expansion adds 124,000-plus sq m
- 43,000 sq m Grade A warehouse
- 5,300 sq m chemicals storage
- 1.2 million sq m open yard
- 3,000-plus sq m offices, amenities
Project Highlights
- Temperature-controlled Grade A specification
- Automation and robotics throughout
- Solar photovoltaic readiness, EV charging
- Leed Gold certification targeted
- 22-year occupational lease structure
Key Developments
- Expansion tender opened, bids due Nov. 15
- May award: $218 million first phase
- February Arcapita funding agreement signed
- Forward-funding model confirmed
Key Challenges
- Bidders face sub-one-week pricing window
- Leed Gold bar spans mixed storage types
- 22-year operating commitment on undeveloped site
- First purpose-built centre for Asmo
Outlook
- Contract award follows Nov. 15 close
- First phase already contracted in May
- Three more strategic locations planned
- Buildout aligns with Vision 2030
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