The Riyadh cargo center construction project began as Rowad Modern Engineering mobilized crews at King Khalid International Airport to expand and modernize air cargo facilities in the Saudi capital.

This development, valued at about $293 million, will increase handling capacity and integrate upgraded infrastructure systems as part of a broader logistics strategy. Furthermore, the project includes refurbishing existing cargo facilities and building new warehouses and support buildings, enhancing Riyadh’s role in regional trade and logistics networks.

Riyadh Cargo Center Project launch and purpose

Work officially kicked off with Rowad appointed by Saudi Logistics Services Company (SAL) to manage and deliver the expansion and refurbishment of the cargo terminal. The contractor’s scope covers all phases of construction, from foundational works through to installation of modern systems designed to boost operational capability. Consequently, the redevelopment aims to achieve LEED Gold certification to support sustainable design standards.

The expansion will raise annual cargo handling throughput significantly and increase the operational footprint on site. SAL, the facility owner, previously stated that development plans would span around 90,000 sqm and include upgrades to infrastructure to support an increase in capacity from about 442,000 tones to around 806,000 tones per year.

Coordination between the contractor, airport operator, and regulatory authorities ensures that construction proceeds without disrupting existing flights or logistics operations at the busy airport.

Strategic role of Riyadh Cargo Center in Saudi logistics growth

The Riyadh cargo center construction project is part of a wider effort to strengthen Saudi Arabia’s logistics and freight sectors. Moreover, air cargo infrastructure upgrades align with national visions to diversify the economy and improve the Kingdom’s connectivity with global trade routes. Investment in cargo handling and logistics is expected to support regional trade growth and attract international freight partners.

King Khalid International Airport, already a major air transport hub, serves millions of passengers annually and operations are expanding in tandem with cargo works. Additionally, SAL and other stakeholders are active across multiple sites in the Kingdom, expanding warehousing and logistics operations through long‑term leases and strategic initiatives that enhance capacity and service offerings.

Design, sustainability, and technology

The project’s design emphasizes sustainable practices, with energy‑efficient systems and building envelopes incorporated throughout. Additionally, Rowad’s engineering approach integrates advanced cargo handling systems to improve turnaround times and operational reliability.

Developers have included modular flexibility in the layout to allow for future expansions and upgrades as demand evolves. Furthermore, automation and digital tracking technologies will support efficient inventory management and reduce bottlenecks.

Construction timeline and phases

The construction schedule has been structured into phased milestones to minimize disruptions. Early phases focus on core civil and structural works, followed by mechanical, electrical, and systems installation. Moreover, final phases will encompass testing, commissioning, and integration of new cargo handling equipment.

Throughout the project, close collaboration with airport authorities manages site access, logistics sequencing, and safety protocols to maintain smooth airport operations.

Saudi Arabia continues to expand its transport infrastructure with a similar major project at King Khalid International Airport saw Al Rashid Trading & Contracting Company (RTCC) secure the contract to redevelop two terminals and construct a connecting section at the airport, enhancing capacity and facilities. The contract award reflects ongoing expansion of aviation infrastructure in Riyadh, reinforcing the city’s role as a regional transport hub.

Project Fact Sheet

Project name: Riyadh cargo center construction project

Location: King Khalid International Airport, Riyadh, Saudi Arabia

Estimated cost: $293 million (c. SAR 1.1 billion)

Client/Developer: Saudi Logistics Services Company (SAL)

General Contractor: Rowad Modern Engineering

Sector: Air cargo and logistics infrastructure

Scope:

• Expansion and refurbishment of existing cargo facilities
• Construction of new warehouses and support buildings
• Integration of advanced handling technology
• Targeted sustainability certification (LEED Gold)

Expected capacity impact: Increase in annual throughput from approx. 442,000 tonnes to around 806,000 tonnes

Project timeline: Underway 2026; phased completion over multiple years

Project Team

Owner & Operator: SAL Saudi Logistics Services – Cargo facility developer and operator

General Contractor: Rowad Modern Engineering – Lead contractor delivering construction and infrastructure works

Airport Operator: Riyadh Airports Company – Airport operator coordinating integration with existing facilities

Regulatory Authority: General Authority of Civil Aviation – Aviation regulatory oversight

Design & Engineering Support: External engineering and logistics design consultants engaged for systems and sustainability planning

Technology & Systems Providers: Automation and cargo handling equipment suppliers (various international and regional firms)

Stakeholders:

• Saudi transport and logistics regulators
• Freight carriers and supply chain partners